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(Pocket-lint) - HTC is licking its wounds after admitting that cloud gaming platform OnLive’s near bankruptcy and subsequent restructuring has hit the Taiwanese manufacturer in the coffers. 

After HTC invested what is thought to be around $40 million in OnLive in February 2011, the company has been unsuccessful in capturing gamers' imaginations, failing to make a profit on its service, which streams games through the internet to computers, tablets and smartphones. 

OnLive narrowly avoided bankruptcy, instead being acquired by an unnamed owner who made several redundancies as part of its restructuring. However, this wasn’t enough to prevent HTC’s investment loss. 

HTC’s partnership with OnLive coincided with the launch of its HTC Flyer Android tablet, which enabled users to stream games straight to their devices or via DLNA to a compatible TV.

OnLive’s demise is the second investment blow to HTC, with the company recently selling half its shares in Beats audio back to the headphone provider. This comes only a year after HTC bought a $300 million majority stake in Beats.

HTC recently admitted that it faced tough times ahead after its share prices dropped to their lowest point in two and a half years.

How serious do you see OnLive's position affecting HTC? Let us know in the comments below...

Writing by Danny Brogan.