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Sony buying Gaikai for cloud gaming service

It had been rumoured before E3 that Sony was partnering with Gaikai, but Sony Computer Enterainment announced today that it's actually outright buying the cloud gaming company for $380 million.

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It had been rumoured before E3 that Sony was partnering with Gaikai, but Sony Computer Enterainment announced today that it's actually outright buying the cloud gaming company for $380 million. SCE say it's planning to "establish a new cloud service" with the tech, which allows players to run snazzy games on low-spec hardware.

"By combining Gaikai's resources including its technological strength and engineering talent with SCE's extensive game platform knowledge and experience, SCE will provide users with unparalleled cloud entertainment experiences," CEO Andrew House said in the announcement.

"SCE will deliver a world-class cloud-streaming service that allows users to instantly enjoy a broad array of content ranging from immersive core games with rich graphics to casual content anytime, anywhere on a variety of internet-connected devices."

Sony's various tablets and Internet-enabled televisions seem likely targets for the tech, which would let them play proper fancy PlayStation 3 games. Gaikai runs games remotely in server farms then streams video footage back to the user, so you can play games on other platforms which could never actually run them. The initial Sony-Gaikai rumours had said that it might be used for backwards-compatibility with original PlayStation and PS2 games on the PS3 too, a feature which was removed from recent revisions of the hardware.

Unlike the other big name in cloud gaming, OnLive, Gaikai was focused on streaming as a way to demo games in browsers or to bring them to mobile platforms, rather than a straight digital distribution service replacing boxed copies. Given the strengths and limitations of cloud tech, we'll likely see Sony continue along similar lines.

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  • reply
    July 2, 2012 8:00 AM

    Alice O'Connor posted a new article, Sony buying Gaikai for cloud gaming service.

    It had been rumoured before E3 that Sony was partnering with Gaikai, but Sony Computer Enterainment announced today that it's actually outright buying the cloud gaming company for $380 million.

    • reply
      July 2, 2012 8:02 AM

      Well I'm glad to see this was announced, although I guess I'm curious to see what they will do with the service.

      Streaming PS2/PS3 games would be great.

    • reply
      July 2, 2012 8:48 AM

      I wonder if Gaikai will still do it's other deals? Like Hawken? and the demos it does on it's and companies websites for their games? Interesting. Maybe Dave Perry will go work on Earthworm Jim 4?

    • reply
      July 2, 2012 9:32 AM

      Dave Perry just got himself a big ass paycheck. I wonder if MS will be buying OnLive as some rumors have said?

      • reply
        January 7, 2014 10:04 AM

        MS will probably just build their own service as they already own a cloud provider.

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      July 2, 2012 11:21 AM

      Welcome to the PS4. Basically, a streaming box for $99.

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        July 2, 2012 11:25 AM

        Hardly. They might use this to stream PSn-1 games to whatever console, but using a cloud streaming service exclusively would basically be handing the next console generation victory to Microsoft on a silver platter.

        "Buy an Xbox 720 for $299! You know, the one without the shitty blocky graphics and lag"

        • reply
          July 2, 2012 11:37 AM

          I'd expect PS4 to be a hybrid - optional game download, demo streaming, BC etc. Next gen from Sony and MS is going to be so damn interesting though - how far do they go with motion? Streaming? Network features? I expect them to both place very different bets, it'll be fascinating to see what they are and what works out.

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      July 2, 2012 1:37 PM

      does this mean that there will be no Gaikai on the new Chromebox? boouurns.

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      July 2, 2012 1:38 PM

      lmao. If there's one company that can fuck things up it is sony. RIP Galkai.

      And fuck you cloud gaming, fuck that.

      • reply
        July 2, 2012 2:52 PM

        Sony needs to get their heads out of the cloud?

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