The departure of Perlman will come as something of shock as it was only last week that he was to stay on as CEO at OnLive after its acquisition by Lauder Partners. In the wake of Perlman leaving, Gerry Lauder, the owner of Lauder Partners has become OnLive's new chairman and Charlie Jablonski, Onlive's former lead of operations, is now the company's COO and acting CEO.

OnLive's new chairman, Gerry Lauder, praised Perlman saying, ""Steve has created an extraordinary company that no one else could have created. He is a unique entrepreneur and deserves his legendary status in Silicon Valley as a creator of groundbreaking companies."

Lauder also went some way towards explaining the new restructuring saying, "the new OnLive is emerging with greater financial security and a brighter outlook on the future. OnLive is now positioned to execute against longer-term projects with our breakthrough technology, products and services."

"I spent my first week with OnLive listening, to gather people's thoughts and suggestions. It's an impressive group, and I am even more convinced that this company is poised for greatness," he added.

The cloud gaming service has been through a rather tumultuous period of late. Just over a week ago OnLive filed for an alternative to bankruptcy and laid off most of its staff without severance.