CLOUD GAMING COMPANY SHADOW FILES FOR BANKRUPTCY

The French company Blade, which operates the gaming cloud service Shadow, has filed for bankruptcy. The bankruptcy procedure began in Paris on March 2, and a day later, Blade's North American division filed for bankruptcy in California.

For the company itself, the current bankruptcy is, first of all, a search for investors who could patch up the financial holes in the budget. Blade officials plan to find sources of investment in the coming weeks, promising to announce their plans as soon as the necessary funding is found. According to a statement released on Shadow's website, the company is planning a reorganization to free itself of the debt that has fettered the tech company’s efforts to develop computer innovations.

Analysts believe the service could be acquired by Octav Klaba, the founder of OVH.

The company is a leading provider of European cloud services and hosting services. However, experts note that for an entrepreneur, the main goal of the investment is to create a European alternative to digital products of American companies (primarily Office365 and G-Suite), but not to develop a gaming service.

Blade believes that the company became a victim of its own success - it offered its customers access to gaming software hosted on a remote server. This allowed users to play PC games from any device. As a result, over the past five years, Blade has attracted thousands of subscribers to the service, having established itself as the most understandable service for cloud gaming, allowing the client to choose the desired hardware configuration.

According to experts, the main reason for the bankruptcy is Blade's debt to the French company 2CRSi, which designs, manufactures and sells computer servers.

According to 2CRSi, the organization has the right to pick up the € 30.2 million equipment that Blade currently operates. Additionally, the company's debt in the amount of € 3.7 million was mentioned.

Experts note that the shortage of a number of electronic components and, in particular, video cards for computer games, has increased the demand for equipment. Other 2CRSi clients have already shown interest in the servers operated by Blade. The company itself was quick to reassure subscribers that the current bankruptcy will not affect the service of pre-orders, and will not affect user accounts. We shold remind that the Shadow service is not available in Russia. The company operates only in Europe and some North American states.