Gaikai acquired by Sony for $380 million

One of the two biggest providers of streaming games has now been bought by one of the biggest game console makers. Sony sent out a press release earlier today that it has acquired Gaikai for $380 million. Rumors of Sony buying a streaming game service started as early as May, but the announcement happened after E3 2012 in June.

Gaikai (the company's name means "open ocean" in Japanese, by the way) was first formed in 2008 with Dave Perry (founder of the now defunct Shiny Entertainment) as its CEO. The company has been offering ways for game developers and publishers to offer its titles via cloud-based streaming servers. Since its official launch in early 2011, the company has offered free streaming PC game demos from Electronic Arts, Ubisoft and others.

As reported by Joystiq, Sony Computer Entertainment, the division for the Playstation 3 and PS Vita consoles, will be the new home for Gaikai. In their announcement today, Andrew House, the President and Group CEO of SCE, hints a little bit that streaming games could be coming to those consoles. He says:

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.

While Perry is also quoted in the announcement, it is unknown at the moment exactly what his role in Gaikai will be after the Sony acquisition. The other big streaming game company, OnLive, remains independent.

Source: Joystiq

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FoxieFoxie said,
So after xbox 720 leak with cloud gaming, Sony starts panicking and tries to mirror Microsoft?

I don't think this kind of decision is made on such short notice. Cloud gaming is part of the future, everyone has been experimenting with it.

Ambroos said,

I don't think this kind of decision is made on such short notice. Cloud gaming is part of the future, everyone has been experimenting with it.

Yes it is, but not at the current state of the internet in most of the world. Gaikai and OnLive still have a LOT of issues that need to be addressed before this could eventually take off. This just screams of desperation by Sony as I'm very sure they would be able to put the technology to good use in the near future.

Welcome to the world where you won't own anything anymore!

This could get really interesting. If implemented well Sony could provide paid PS3 game streaming to people who don't own one. I for example would be extremely willing to be able to play Heavy Rain or Beyond: Two Souls for nearly the full price without having to buy a PS3!

Ambroos said,
This could get really interesting. If implemented well Sony could provide paid PS3 game streaming to people who don't own one. I for example would be extremely willing to be able to play Heavy Rain or Beyond: Two Souls for nearly the full price without having to buy a PS3!

hahaha yeah sure, that'll happen, fat chance.

big chance they actually got it to build it into their PS3/Vita systems, and maybe even their TVs. But for people to play PS3 games without a PS3... no way

Ambroos said,
This could get really interesting. If implemented well Sony could provide paid PS3 game streaming to people who don't own one. I for example would be extremely willing to be able to play Heavy Rain or Beyond: Two Souls for nearly the full price without having to buy a PS3!

That is NOT possible. Gaikai's servers run Windows and Linux and there is no possibility of running an emulation of the Cell CPU on current day processing units.
This also means no PS3 backwards compatibility for PS4 via this method as it is simply PlayStation fanboy wannabe bull****.

Shadowzz said,

hahaha yeah sure, that'll happen, fat chance.

big chance they actually got it to build it into their PS3/Vita systems, and maybe even their TVs. But for people to play PS3 games without a PS3... no way

+1. Nothing about this purchase is going to encourage LESS console sales... Sony made this purchase in order to make money.

Though given Sony's current situation I am surprised they had the money...

M_Lyons10 said,
+1. Nothing about this purchase is going to encourage LESS console sales... Sony made this purchase in order to make money.

Though given Sony's current situation I am surprised they had the money...

Well I'm not too sure about that. It's a well known fact that Sony didn't make a profit on the PS3 for the first few years, even though that might be slightly different right now. They were counting on content sales to get their profits.