OnLive may have taken the battlefield prematurely as statements of layoffs, bankruptcy, and a buyout are making the rounds.

A few days ago, we told you about OnLive Desktop: this new service, which we heard about at CES, promises to gift iPad owners a Windows 7 experience on their Apple-branded tablet, including access to free cloud-storage and Microsoft Office applications. The free application ("OnLive Desktop") has now launched and, though the service appears to be struggling with the initial intense demand, the results are impressive.

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OnLive has recently announced that it plans to launch a cloud gaming app for the iPad in the App Store. Once available, the application will allow OnLive subscribers to stream console-quality games from the cloud and play them on their iPad, either using a touch interface or a special Bluetooth controller.

The online game-streaming service, OnLive, hasn’t yet added the ability to play games on an iPad (currently, you can just watch them). However, the release of an OnLive Universal Wireless Controller could provide a solution to the problem of touch-engineering non-touch based games.

OnLive, the up-and-coming pioneers of streaming, instant-play video games, have released their first iOS app titled OnLive Viewer, which is meant to give iPad gamers a mere taste of what the company intends to offer in the future.

Check out a video of OnLive demonstrating their on-demand 'cloud' based gaming service using an iPad at this year's Electronic Entertainment Expo.