Anecdotal, I know, but I personally witnessed the following sequence of events from the inside of another company (Not OnLive):
The company in question (Let's call it "Doomed Venture" - not its real name, but accurate enough) was an LLC equally owned by two individuals, both of whom had other business operations outside the company. As a result, neither of the owners could dedicate much time to Doomed Venture. At the same time, neither was willing to delegate any real authority to the managerial staff. As a result, the company had a kind of lurching pace where business would get done, then hit a bottleneck where top-level authority was required, and basically everything would clog up until one of the owners bothered to participate.
This wasn't really out of necessity: Owner A was something of an outsider, living hundreds of miles away from the actual company, and having little to no expertise in the company's industry. Owner B was local, and even operated another related business in the same building as Doomed Venture. He had a great deal of knowledge and experience in the industry, but also operated Doomed Venture more like a train set than a business. His decisions were motivated more by whim than by business strategy.
Owner A disliked Owner B's lack of professionalism and blasé attitude towards sound business practices. Owner B disliked Owner A's outsider nature, both geographically and in terms of the specific industry involved. Both owners decided they wanted the other to sell their share - and so the two of them began the Losing War.
The idea was simply for each of them to intentionally mismanage the company to such an extent that the other would abandon the company in exasperation. Unfortunately, they failed to take into account the fact that they were both extremely stubborn individuals.
Regular business stalled more than ever before. Major opportunities were passed up with little (or no) justification. High-profile clients and partner companies were given the cold shoulder, or simply neglected to the point of complete silence. Warehoused goods were shuffled around in among several nearby storage locations, with intentionally poor documentation of transfer - many items ended up in limbo simply because there was no clear documentation of where they had been sent, and manually searching the facilities wasn't feasible. Offices were similarly relocated with unusual frequency, including a multi-month period during which all office business was conducted in the basement of the general manager's home.
None of these decisions were the result of tight funds or issues with outside parties. Both owners even admitted their motivations directly to the general manager while I was present, unaware that the other party had similar plans. Since either of the owners by themselves had the authority to hire and fire, the manager kept his mouth shut.
The company's reputation rotted. What little business activity actually performed was plaugued by preventable issues, and poorly received (even ridiculed) by the industry. Neither owner budged an inch. Last I heard, they still had every intention of forcing the other out, and would try even harder to fail. This was several years ago.
Ostensibly, the company still exists: Their website is still (rarely) updated, and one of their creditors still receives payment on a regular basis. The checks are still signed by the same general manager, so at least one employee from that era is still on board. They occasionally make some blip in their industry, but the result is always overpriced and under-quality. Prior to the Losing War, the company had even been moderately successful, and had stockpiled a decent amount of money from that success. Last I heard, their operational overhead was crazy low, so it's possible that they may keep up their intentional failure for decades to come.