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Mashable has rumors layoffs at OnLive amid a retraction of their original report that the cloud gaming service was shutting down today following a tweet by InExile's Brian Fargo to that effect (thanks nin). The story currently suggests the entire staff has been let go, though some may be rehired for the company's next phase. Mashable's official statement from OnLive on this is: "no comment on the news other than to say, the OnLive service is not shutting down." Kotaku notes that the OnLive Blog has word on a free indie game giveaway, to the extent you can own a game streamed from the cloud, saying they are offering SpaceChem and Space Pirates and Zombies (S.P.A.Z.) for free. Update: Gamasutra now says they can confirm that the entire OnLive staff was fired today.
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