PlayStation to the Cloud: Sony acquires cloud-streaming gaming company Gaikai

playstation to the cloud sony acquires streaming gaming company gaikai buys enters business

Sony and Gaikai are the wiliest devils there are! Ahead of E3 2012, rumors swirled every which way that Sony was going to purchase the cloud gaming service and would announce its entry into the streaming gaming market at the conference. E3 came and went with nary a peep out of Sony or Gaikai, and following the event Gaikai flatly denied that it was considering a sale to Sony.

Gaikai head David Perry’s protestations were simply classic misdirection: Sony purchased Gaikai on Saturday for $380 million. The purchase has the potential to fundamentally alter the game console business and the PlayStation brand as its been known for the past 18 years.

In a press release sent on Saturday, Sony Computer Entertainment CEO Andrew House said, 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. 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 on a variety of Internet-connected devices.”

House’s comments confirm that Sony will be the first console maker to enter the cloud gaming arena, beating the typically service-savvy Microsoft to the punch. Sony’s PlayStation 3 console isn’t named directly in the press release, which means that the Sony-branded version of Gaikai’s service may skip this console generation and debut alongside the PlayStation 4, or PlayStation Orbis as its sometimes called. Core gaming, Gaikai and Sony’s stock in trade in the broader video game industry, is front and center in the announcement though, which means Sony’s ambition is to bring cloud gaming into its console business. Gaikai’s infrastructure may also work as vital glue for Sony’s disparate digital services, including mobile gaming with PlayStation Mobile, music through Sony Music Unlimited, and others.

What will Sony offer first? Rumor is that Sony will offer PlayStation and PlayStation 2 classics for streaming soon, but House’s comments about rich graphics certainly imply that Sony will offer much more than legacy titles.

Even though Gaikai said it wouldn’t sell to Sony, it was expected to sell to someone soon. CNN reported on Jun. 22 that Gaikai was looking for a buyer to pay $500 million. Sony came close to that price, but did come in well under.

Sony is aggressively moving away from retail sales models. The PlayStation Vita, while not successful yet, is an impressive device from the company chiefly because it’s the first machine from Sony that makes digital and retail distribution equal. Now Sony is banking on console gaming as a service, not as a retail business at all. All it has to do now is deliver a service of quality.


Microsoft CEO says Project xCloud is the ‘Netflix for games’

Microsoft CEO Satya Nadella referred to the company's Project xCloud game streaming service as "Netflix for games." The service will let users play Xbox and PC games on a variety of devices.

Take a trip to a new virtual world with one of these awesome HTC Vive games

So you’re considering an HTC Vive, but don't know which games to get? Our list of 25 of the best HTC Vive games will help you out, whether you're into rhythm-based gaming, interstellar dogfights, or something else entirely.

Want to trick out your PlayStation 4? These themes will get you started

Personalize your gaming experience with some of our favorite themes for the PlayStation 4, including free, paid, static, and dynamic options.

Immerse yourself in a new universe with these incredible PSVR games

The PSVR has surpassed expectations and along with it comes an incredible catalog of games. There's plenty of amazing experiences to be had so we've put together a list of the best PSVR games available today.

Get extra life with our tips and tricks for 'New Super Mario Bros. U Deluxe'

New Super Mario Bros. U Deluxe is a much more difficult game than you'd believe based on its adorable art style and 2D perspective. Here's how you can master the game's toughest challenges.

Find all of the secret exits and world skips in 'New Super Mario Bros. U Deluxe'

New Super Mario Bros. U Deluxe has two distinct Mario experiences in one package. In this guide, we'll show you how to find all of the secret exits in New Super Mario Bros. U, that lead to hidden levels and let you skip worlds.

For Netflix, ‘Fortnite’ on YouTube is a bigger threat than HBO

In a letter to shareholders, Netflix explained that it views the video game Fortnite as bigger competition than HBO, with YouTube videos of the game drawing viewers away from the streaming platform.

Find all of the secret exits and world skips in 'New Super Luigi U Deluxe'

Just like all other 2D Mario games, New Super Mario Bros. Deluxe includes secret exits and world skips. In this guide, we'll show you how to get to all 12 secret exits in New Super Luigi U.

Here's where Xur is and what he has for wares this week in 'Destiny 2: Forsaken'

The weekly vendor in Destiny 2: Forsaken always brings Exotic weapons and armor, some of the toughest loot to find in the game. Here's everything you need to know to track down Xur: Where he is, when he shows up, and what he's stocking.

You could be gaming on AMD’s Navi graphics card before the end of the summer

If you're waiting for a new graphics card from AMD that doesn't cost $700, you may have to wait for Navi. But that card may not be far away, with new rumors suggesting we could see a July launch.

Sharing your best gameplay moments is quick and easy on the Xbox One

The current generation of consoles make it easier than ever to share your gaming highlights with the world. Here's a quick guide on how you can record a gameplay video on Xbox One.

Blizzard’s latest hiring spree is likely for the unannounced ‘Diablo 4’

Activision Blizzard is hiring for more than a dozen positions on unannounced Diablo projects. Some of the roles are likely for the unannounced Diablo 4, the next mainline entry in the series.

Everything we know about 'Red Dead Online', including the new mode Gun Rush

Red Dead Online will gradually rolled out to Red Dead Redemption 2 players via a beta. We've got all the details about the beta's suite of competitive and cooperative modes, as well as what to expect going forward.

Xbox One X vs. PS4 Pro: Which console is more powerful?

Far from cooling down, the console wars are only getting more intense. We compare Microsoft's Xbox One X to Sony's PlayStation 4 Pro to help you decide which premium console is right for you.