Sony Computer Entertainment Acquires Cloud Gaming Company Gaikai

By Spencer . July 1, 2012 . 11:48pm

imageSony Computer Entertainment announced they purchased Gaikai, a cloud gaming service run by Earthworm Jim creator David Perry, for approximately $380 million. Gaikai processes games on servers and streams the data into web browsers and other devices like tablets and mobile phones. Games like Dead Rising 2: Off the Record, Crysis 2, and Alan Wake run on Gaikai.


"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," Andrew House, President of Sony Computer Entertainment, said.


"SCE has built an incredible brand with PlayStation and has earned the respect of countless millions of gamers worldwide," said David Perry, CEO of Gaikai Inc. "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."


While no specific plans have been announced, what do you think of the idea of enhanced remote play where you can run say a PS3 game in the cloud and play it on another device? Or a cloud based backwards compatibility system for the entire library of PlayStation games?

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  • Still not a fan of the cloud gaming stuff personally.  Unless I were to be playing turn-based games all of the time, I think the lag would just get to me.

    • jujubee88

      Are you conspiring for a future where cloud based, turn-based gaming will rule all man(and woman)kind?

      My god man, think of the JRPG’s. COUNT ME IN!

  • Kefkiroth

    That’s pretty amazing. Hopefully this will help Sony’s income, as they haven’t been doing the best for the past few years.

    And PS3 games on other devices = epic. Maybe they’ll finally put PS3 games streaming to Vita.

  • Suicunesol

    I see it happening in the future, but not now. Internet connections are not reliable enough.

    Either way, I think this is a major acquisition for Sony. :O

  • LovesJapanManga

    Oh crap. That is a fantastic news. Well played, Sony and Gaikai! Misleading us into believing that this case did not happen… Nice played! By the way, I am looking forward to see this new service grows and evolves over the time… I am quite excited for those features… 

  • So the rumor is actually true, after all???? I’m surprised that Sony managed to acquired it despite the financial troubles…

    “what do you think of the idea of enhanced remote play where you can run
    say a PS3 game in the cloud and play it on another device? Or a cloud
    based backwards compatibility system for the entire library of
    PlayStation games?”

    My thoughts??? Sony consoles(PS3/Vita) can play PC/PS2 games… Or PC playing PlayStation games… As of now, Gaikai has demos not full games and I haven’t tried the service yet… I’ll wait and see what happens next…

  • Nicolas Vasquez

    for a lot of people like me outside the US lag is a common thing, and if this mean you could play playstation games on a ps3, it would pretty much mean the end of the sony consoles, or worst if the rumors turn true and PS4 turns to be a cloud gaming device.

    • $1484028

      you can be all but sure that the PS4 is not a cloud gaming device.
      it’s a fun talking point for game industry media pundits and developers-turned-futurists, but from an actual business/logistics standpoint its not going to happen.
      maybe by the time the PS5 is ready, but not within the next 2-3 years when the PS4 would be coming out.nevermind outside of the US, even in the US, Gaikai doesn’t perform consistently for everyone across the country.  Gaikai’s very bandwidth intensive, and the west coast and north-east have far better broadband connections than the south or the midwest.and then with more and more people using their internet for everything (for example, its increasingly becoming how people watch their TV shows) you’re not going to see any console maker bank on a pure cloud gaming console (or  a pure digital delivery console, while we’re at it) until broadband providers start loosening up on their data limits.
      they’re not going to handicap themselves to being forced to fight against people’s TV, email, general surfing the internet, etc usage of a limited monthly resource.

  • komiko12

    I don’t know if it would be profitable at this point of time.
    But it sure is an investment.

    • badmoogle

      I think it was a wise move from Sony’s part that they bought them at this time.In 5 years from now with connections becoming way much more faster,their acquisition price would have been much higher as well.

  • Ashurei

    The end is nigh.

  • malek86

    I’m not sure what they intend to do with this. It’s likely that they’ll leave the PC service as it is, while maybe also adding the chance to play PS1/PS2 games with your PC. But it’s also likely that PS3 games will remain exclusive to the console, since that would cannibalize sales.

    On the other hand, it’s not like they can just add PC games to the PS3, since I assume they’ll need to work out deals with publishers and developers first. We might see some things though. But for the most part, all console-centric games are already coming to consoles one way or the other (and I doubt joypad owners would be able to play Total War 2 well). Perhaps for indie stuff, which seems to be sorely lacking on the PS3?

    I guess it could also be a way to allow PS3 owners a chance of simply paying a fixed amount per month to stream games indefinitely. PS+ does something similar, but maybe they think downloading full games all the time is a pain (especially the current “60 minutes full trials” that require you to spend more time downloading than playing).

    They’ll still have to deal with the lag and low speeds across the world. On the other hand, this purchase is not likely to have any big consequences until at least the mid of 2013.

    • Leaving the PC service??? Wouldn’t that limit Sony themselves now that they owns Gaikai…. The chance to play PS1/PS2 games with the PC??? Sony is gonna need extra hardware to emulate the games due to the different coding structure… PS3 games exclusive to the console??? Probably but I’m thinking it won’t be after this generation is done and comes the next-gen…

      PC games to PS3??? I remember Gaikai did the same with the Ipad and I haven’t heard any complaints from the publishers and developers as far as I know… Also the PS3 has USB slots which means you can plug a keyboard and a mouse to it…

      If they solve the lag and low speeds problem, it would be a real kicker… What kind of consequences, may I ask????

    • Kevadu

      I don’t know why people seem to think Sony is going to put PS3 games on the PC with this.  That would be a dumb move for them.  If you ask me the obvious thing to do is stream PC games to the PS3.

    • 30sGamer

      Well Sony’s gaming division is profitable, just down a bit last quarter from the Vita launch.  TVs are what are really dragging the company down, and a strong yen and the Tsunami last year.  But “bigger picture” is that they have the option (and intent, if you read the media brief) to spread their games onto a variety of platforms.  We could even see PS4 games on the PS3 (streamed from servers, obviously). No need to upgrade next gen for those with decent internet connections, while providing enthusiast hardware for the people who want to plunk down the $.  Or PS3 games on the iPad – with the requisite gimp controls :P (why not if Sony wants to act as the publisher). This is the smartest and most aggressive move that the company has made in a long time toward future investment and strategy.

      We should have heard about this at E3 instead of a front and centre Wonderbook snoozefest.

  • riceisnice

    Can Sony afford to be spending more money like this?

    • samjosiah


  • xavier axol

    i was hoping for onlive or steam, but seen how better (well, at least steam is) and expensive they’re. going for gaikai is a no brainer though, i would advise sony to do the following: don’t be limited by just your hardware share the love for both playstation loyals, pc gamers, and why not other devices like ipads (or phones). but most important DO NOT GO CAUSAL, bring the content like psone/two classics. been able to stream demos/video content to ps3/vita would be sweet! and improve the service that gaikai offers (what that means? i don’t know, i never used their services), but improve we must!! (lol star wars)

  • Vampiric

    Rebuying games on psn, isnt BC


  • Vampiric

    Gaikai deal ‘a strategic move to sell more Sony TVs,’ says Pachter

    to the Wedbush analyst, Sony’s proposed purchase of the cloud gaming
    firm is likely more related to pushing Sony TVs than traditional game
    products, as well as a strategic move to keep the cloud tech away from
    its rivals.

    “I think that this is more related to Sony’s
    integrated strategy, and ties into their hopes of selling more
    televisions. I know that Gaikai was purchased by Sony Computer
    Entertainment, but essentially, they provide a solution to play games
    without a console, so they make a lot of sense if built into Sony TVs,”
    he told CVG.

    “This could be both a strategic move to sell more
    TVs and a pre-emptive move to keep others from using the service. It’s
    actually a very interesting deal, and the price is reasonable if it
    gives Sony an advantage over other television manufacturers while
    keeping the technology off the market so that others can’t eliminate the
    need for a console.”

    So what is this changing exactly for handheld or console gamers?

    Probably nothing…….

    • BadenBadenPrinny

       So it’s for a division that they should have killed :(

  • Göran Isacson

    So they’ve acquired a streaming service instead of making their own… I guess that it’s cheaper for them than researching something totally new. Makes me wonder if they plan on integrating this tech into their PS3’s, or if it’s going to be in the next console they release.

  • DarkWaterClone

    Remote Play for the Vita is going to be Awesome. This will be a real killer for the Vita. If Sony gets this to run very well it could help sell more Vita systems.

    To me the cloud service could be a lot bigger of a deal for the Vita over the PS3. Just think now you would not have to buy a Vita version of the game & just the PS3’s version instead & play it on the Vita.

    Plus maybe now PS2 games can come out on the Vita. I think if you could stream PS2 games to the Vita would be a big win for the Vita.

  • PS VITA has potential and if COD Black Ops Declassified sells then Assassin’s Creed III Liberation will as well. 

  • Solomon_Kano

    Using it for Remote Play on Vita would be epic, but somehow I doubt that’s what they’re planning on. It would only be possible over Wi-Fi for one, since the Vita’s 3G from AT&T is paltry, so I don’t know that that’s going to be something they’d prioritize with such an acquisition.

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