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Sony Buys Cloud-gaming Service Gaikai for $380 Million

We've been hearing rumors about Sony's plans for cloud gaming for quite a while. Back in May, there were reports that the PS3 manufacturer may acquire a cloud gaming company as opposed to building its own platform. Those rumors mentioned both OnLive and Gaikai as possible acquisition targets. Though Gaikai appeared to quash rumors of a Sony deal early last month, Sony today announced that it had acquired the four-year-old company behind the successful cloud gaming platform.

The deal, announced early this morning, is worth $380 million and will allow Sony to establish its own cloud service using Gaikai technology and infrastructure. This includes data centers that service dozens of countries and key partners around the globe. Sony's Andrew House said that the acquisition will enable Sony to deliver a 'world-class cloud-streaming service' for a wide range of content. House said this will include graphically rich games as well as 'casual content' and added that users would be able to access the service on "a variety of internet-connected devices."

The news comes after Gaikai CEO David Perry put folks off the scent last month. Previous rumors had pointed towards an E3 reveal for Sony and Gaikai, but that never came. Speaking after the conference, Perry revealed that he was sitting in his hotel room at the time of the Sony press event.

"I was sitting in my hotel room, and I know everyone was like, 'Oh my god, are they going to announce cloud gaming?' And I was like, 'No, they're not going to announce cloud gaming.' I wasn't even there!" he told Eurogamer.

It was enough to plant the idea that there might be no Sony/Gaikai deal after all. Today, Perry said that Gaikai was honored to help Sony 'rapidly harness the power of the interactive cloud.'

"SCE has built an incredible brand with PlayStation and has earned the respect of countless millions of gamers worldwide," said Perry. "We're honored to be able to help SCE rapidly harness the power of the interactive cloud and to continue to grow their ecosystem, to empower developers with new capabilities, to dramatically improve the reach of exciting content and to bring breathtaking new experiences to users worldwide."

The acquisition will still need to go through the usual regulatory approvals and neither company mentioned when they expect things to be signed and sealed.

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  • louiecog
    I expected this, though I'm surprised they announced it almost a month later. My guess is that they were in talks but the numbers each side wanted were off too much at the time. That is also why Gaikai put the feelers out that they were shopping themselves, so they could possibly drum up competition and see if Sony would increase their price. Whether it worked or not doesn't really matter at this point. I'm excited to see how Sony uses this. They may be able to make their next system last 10+ years without bringing out the PS5 earlier than that if they can make cloud gaming work on the console.
    Reply
  • pharoahhalfdead
    I don't even have a Playstation but hopefully backwards compatibility wont be an issue across the different versions if you are using the cloud. Just like Sony ended backwards compatibility with PS2 when the PS3 Slim came out, I wonder if that will be non existent with the PS4. I understand not playing PS4 games on a PS2 but now there should be no reason not to be able to play PS2 games on PS4 with cloud gaming.
    Reply
  • DroKing
    I have a hunch that Sony will destory this company. I said it first.
    Reply
  • hoofhearted
    I hope they do destroy it or it flops. I hate the very idea of cloud gaming anyway.
    Reply
  • aftcomet
    Not a fan of cloud gaming. Way too much control is lost on my end. Not to mention internet latencies have a long way to go. Cloud gaming is more a novelty to me than an actual function.

    Pass.
    Reply
  • Darkerson
    I like how some of these comments come off as "I dont like this, so it shouldnt even exist!"

    I may not use it, but its good to have more options out there. Hopefully they do something neat with it, like being able to stream PC games onto consoles. Not the most elegant solution, but its better than nothing at all.
    Reply
  • lasaldude
    Comments above me ^^, Smart Post, Hater, Hater, Hater, Hater, Great Suggestion.
    Reply
  • DroKing
    lasaldudeComments above me ^^, Smart Post, Hater, Hater, Hater, Hater, Great Suggestion.
    then moronic after Great suggestion.
    Reply
  • amk-aka-Phantom
    DroKingI have a hunch that Sony will destory this company. I said it first.
    Good, one less cloud gaming company. Hopefully OnLive next.
    Reply
  • amk-aka-Phantom
    DarkersonI like how some of these comments come off as "I dont like this, so it shouldnt even exist!"
    Do you actually understand why people hate the cloud? No? It's not because it's an "option". It's because it tries to phase out everything else. And I don't want some stupid streamed games to phase out my locally ran ones.
    Reply