OnLive, whose abrupt restructuring on Friday left half of its staff jobless, has also put some of its investors in the cold.
Among them is Taiwanese cellphone manufacturer HTC Corp., which reported on Monday that it has lost $40 million in OnLive's financial reorganization.
OnLive, a video game streaming company, has been struggling in recent months to resonate with consumers who have been slow to embrace its cloud-based games model.
HTC, in a statement, said, "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 $40 million provision for this investment loss."