One of the pioneers of instantly streaming games, OnLive has been purchased by an unknown third party if reports from Joystiq are correct.  50% of the service’s staff were apparently let go as of 10AM this morning and said employees were seen leaving the company’s headquarters carrying moving boxes full of various supplies & possessions.

So far Onlive has not commented on these reports thus far. The closest thing we’ve got to an official acknowledgement is the fact that Onlive does not comment on rumors and speculation and that games now available on the service will continue to be available for the coming weeks.

Right now we don’t know how these developments will affect OnLive’s existing products, which have been available on PCs, as a standalone receiver attached to a television and more recently built right into to Vizio brand TVs. At the beginning of this fiasco the rumor was that the entire company had gone under, so it is hard to tell fact from fiction at this time.

More as it develops