Sony to buy Gaikai – Video Games Update
Sony Computer Entertainment (SCE) announced today that it will be acquiring the cloud streaming service Gaikai for US $380 million.
Ever since the launch of Valve’s Steam and Onlive, every publisher has set their eyes on cloud computing since physical media seems to be slowly fading out and being replaced by digital distribution.
This news comes right after the leaked documents relating to the next Xbox, in which Microsoft had stated that it is looking into Onlive, which is a device that offers cloud based gaming, as a potential future threat and as a target for acquisition. This
news might make them settle for the latter as Sony has made the first move towards cloud computing.
Sony buying Gaikai may confirm that the future of gaming is cloud based as it will be way cheaper for the publishers since they won’t have to spend on physical media distribution costs. Sony will also benefit as they can now directly compete with the Wii
U’s new controller through streaming media from the Playstation 3 to the Playstation Vita.
There is also a downside to cloud based gaming as having high speed broadband with a low ping is a necessity for lag free gaming. Another major downside is that the gamers will not be buying the game but will be purchasing a licence to play the game and
should someone for any reason get his account banned from the service, he will probably lose all the games that he paid for. Then there is also the downside of not being able to play any game at all if the internet is not available.
“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,” stated the President of SCE,
Andrew House.
This means that Sony is not just looking into cloud gaming but also trying to counter the Xbox Lives’ other media streaming services like its partnership with Hulu, Netflix and some major TV channels like ESPN for North America and Sky network for the United
Kingdom.
We are seeing Video game consoles undergo a drastic change as they are slowly turning into an all in one Entertainment and Media center for your living room. The question remains if this acquisition pays off for Sony and turn things around, as the company
is already facing a financial crisis at the moment since most of their departments are operating at a loss, or is Sony just throwing $380 million away?
Tags: