In a press release today, cloud gaming service OnLive announced that the company will soon cease operations, but portions of OnLive will be acquired by Sony.

Terms of the transaction were not disclosed, however an OnLive representative wrote:

"Users will continue to have access to OnLive’s services until April 30, 2015, including the OnLive Game Service, OnLive Desktop, and SL Go (Second Life). After today’s date, no further subscription renewals will be charged for any of these services. Users whose subscriptions renewed on or after March 28 will be refunded. Following the termination of the company’s services and related products, OnLive will engage in an orderly wind-down of the company and cease operations."

Sony has made big in roads into cloud services recently, specifically through PlayStation Now, a streaming portal for PS3 games. Regarding Sony, the statement read that "Sony Computer Entertainment Inc. will acquire various assets of OnLive, including its U.S. and foreign patent portfolio covering its substantial innovations in cloud gaming."

We've reached out to Sony directly for insight into how exactly OnLive will serve to improve its current on-demand offerings.