Shadow creator Blade Corp. files for bankruptcy and starts looking for investors

Blade, the company behind the PC game streaming service Shadow, filed a request bankruptcy. The French company created Shadow in 2014 and has brought thousands of users to the service over the past five years. However, Blade’s server vendor, 2CRSi, claims Blade owes millions of dollars in debt. Blade will be looking for investors in the coming weeks.

As reported, 2CRSi released a recent statement noting that it can take $ 29.4 million in hardware from Blade’s US subsidiary, Blade Corp., in addition to $ 1.2 million in financial debt. “While 2CRSi has been supporting Blade in its development since 2017… Blade now represents around 10% of the Group’s deliveries,” the statement said.

The COVID-19 pandemic has caused an “electronic component shortage” and increased demand for 2CRSi equipment. According to the statement, other companies have expressed interest in the servers used by Blade.

Due to the debt, Blade Corp. filed for bankruptcy on March 3. The company released its own declaration about a “new start” for Shadow. The post noted that Shadow “has fallen victim to its own success” due to the ever-increasing number of active users of the platform and the demand for video game streaming services.

“We will undergo a reorganization in order to free ourselves from the debt which holds us back to continue the development of our advanced technology,” said the release from Blade. The company has started the investment process and has promised to update its clients soon.

Here’s what Blade’s bankruptcy means for Shadow users

Blade has included an FAQ section in their article to help Shadow users understand how changes in the business will affect them. Shadow subscriptions will work normally for active users and Shadow Boost pre-orders will be fulfilled. All pre-orders on Shadow Ultra or Shadow Infinite in Europe, the service’s next-generation graphics technology, will retain this status. These offers were due to arrive in California and New York, but the US release is “on hold for now.”

As for Blade’s future, OVHCloud founder Octave Klaba revealed on Twitter that he is considering making an offer to buy Blade and Shadow. However, its objective will be to “develop a European alternative” to Microsoft Office 365 and Google Suite, and not to games.

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