OnLive Raised $40m - Sold for $4m

"its predecessor's basic problem was not its business model but that it simply hadn't raised enough cash for its business to take off."

I think that quote sums up their "basic problem", being blind to the fact that throwing investor cash at a s**t business model is not going to make anything a success. They still think the problem was a lack of investment? Extraordinary.

One problem was that their price of entry to play their catalogue was generally higher than retail. Console retail. £45 to play a game that you could get on steam for £20 less, in a non-laggy, less gimped format. No comparison. The over valued the convenience of the service vs the quality it delivered.