[UPDATE]: Streaming game company plans to continue current products, rehire "large" number of previous employees.

[UPDATE]: An OnLive spokesperson confirmed to VentureBeat that the streaming gaming service's assets have been sold to another company. The spokesperson said users will experience no interruption of services or product roll-outs and the new company plans to hire "a large percentage" of its former employees. The original story follows below.

Rumors of OnLive's demise may have been greatly exaggerated.

Still alive.

When asked about reports that the company was shutting down entirely, a representative with the streaming game service told GameSpot, "We don't respond to rumors, but of course not." He went on to note that Vizio Co-Stars streaming media players with OnLive built in are just now rolling out to customers, and the company is in the middle of a three-week indie game giveaway promotion.

Earlier today, Mashable carried unconfirmed reports that OnLive laid off its entire staff. However, the business was said to be transitioning to a new phase in which a number of the staff could potentially be rehired. The report suggested the new-look OnLive could be driven by intellectual property and its numerous patents on cloud-based gaming.

Wasteland 2 developer and Inxile founder Brian Fargo posted on Twitter that he had received an email from an employee with the company saying that everyone had been laid off and it would be closed by the end of the day. He later tweeted that he had received a recall request on that same email.

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