There are mixed reports floating around the internet this afternoon, some of which say that video game streaming service Onlive has laid off its entire staff and is shutting its doors. If true it’s bad news for the employees, gamers, and associated companies, like LG and Ouya, but that might not be the case. The company has denied the rumors and say it’s business as usual. The lack of acknowledgement of any changes on their Twitter feed seems to verify this.The Twitterverse is alight with conflicting claims about Onlive “no longer being an entity” and then about how the company does not speak to rumors, but as to the rumor of being shuttered, well, “of course not“. It appears that the rumor originated with messages sent to Polygon, TheVerge.com’s gaming arm, from more than one Onlive staffer (or former staffer, as the case may be).Of course, both side could be true — Online could be having layoffs and remaining open for business. Even if a large portion of the staff was let go the company could still presumably continue operations, work on established partnerships with Ouya, LG, Vizio, and others, and stream games.At this point the company has not spoken about the layoffs, but has made it clear that they are not going out of business. There have been clear statements which hopefully will be addressed before long, as this would certainly affect the future of the product.This is one of the tweets that started it all:Their employees are sending out emails that #OnLive will be closed by the end of the day.— Brian Fargo (@BrianFargo) August 17, 2012Fargo is a games industry veteran and would be a trusted source for information like this. Apparently he was sent an email speaking about the layoffs and closure, which was later recalled. The email is available here. It notes how the company is closing, layoffs will be made, and then a new company will be formed in the future.We’ll have to see how this one shakes out. For now it seems that things are stable at Onlive, as least as far as gamers are concerned. Update: 4:11pm – According to Kotaku, Onlive had an all-hands meeting this morning and announced that the company was filing for bankruptcy. A new company would be formed from the ashes and some some employees would be rehired by the new entity in order to continue operations.