the E3 2004, running Unreal Tournament 2004, and then again at QuakeCon, where it was shown to be capable of perfectly operating Quake 3 Arena on a dedicated server. After a couple years of setbacks, the company bankrupted in 2008, with the Phantom console never officially released to the market, becoming one of the most popular vaporware of recent times. Video game developer Crytek began the research on a cloud gaming system in 2005 for Crysis, but according to their CEO Cevat Yerli, they halted development in 2007 to wait until the infrastructure and cable Internet providers were able to complete the task and the cost of bandwidth to decline. OnLive and Gaikai Entrepreneur Steve Perlman revealed OnLive at the March 2009 Game Developers Conference. Perlman stated that with improvements in data and video compression as well as capabilities of smartphones, the potential for cloud gaming was now timely. OnLive was officially launched in June 2010, alongside sale of its OnLive microconsole. While OnLive had acquired some support from large publishers like Ubisoft, 2K Games and THQ, they found it difficult to get other publishers onboard as they were wary of the subscription price model. Simultaneous to OnLive, another startup Gaikai was announced by David Perry in 2010. Gaikai opted to approach streaming of game demos rather than full games, making the service a form of online advertising for games. Gaikai gained far more publisher support, including Electronic Arts which OnLive had been trying to bring back to their service. Gaikai was acquired by Sony Computer Entertainment in July 2012 for , and by October 2012, was offering PlayStation games. Ultimately, the technology behind Gaikai was used as the foundation for PlayStation Now, first introduced in 2014. OnLive was never profitable, and after a possible acquisition by HP Inc. fell through, OnLive’s assets were acquired by a newly formed entity named “OL2,” which was capitalized by Gary Lauder of Lauder Partners in 2012 at , a fraction of OnLive’s valuation from 2010. A mass layoff (2/3 of staff) was conducted to reduce operating costs. Under Lauder Partners, the new OL2 attempted to pivot its business model to allow streaming of games already owned by the user, but this failed to be profitable. OnLive and OL2's intellectual property was acquired by Sony Computer Entertainment in April 2015, but then closed it down about a month later. As stated by The Verge,