HTC will have to book a $40m (£25m) loss due to its investment in the cloud gaming service OnLive, the Taiwanese handset-maker said on Monday.
Although it also has a sideline in hosted desktop delivery, OnLive is best-known for providing on-demand gaming through the cloud, allowing PC-quality games to be delivered to devices such as tablets and even smartphones.
HTC bought into OnLive in February 2011, but now OnLive has applied for what it called 'asset restructuring', shortly after key competitor Gaikai got bought by Sony for $380m.
"Due to lack of operating cash and an inability to raise new capital, OnLive had completed asset restructuring over the weekend. HTC estimates that it will need to recognize a $40m [£25m] provision for this investment loss," an HTC statement read.
OnLive's restructuring has proven somewhat contentious, as it effectively destroyed the equity held in the company by long-serving employees and investors — including HTC.
The cloud gaming service was not the only iffy investment made by HTC in recent times. Last year it also ploughed $300m into the headphones outfit Beats Electronics, only to sell back half of that stake this July.
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