Is streaming the future of gaming? Sony's betting on it.
With the ongoing battle between publishers and retailers over used games—not to mention the fight against piracy—it stands to reason that a move away from physical media is the future for the video game industry. It’s a transition already fully underway in the film industry, with digital movie rentals, sales, and streaming services such as Netflix and Amazon Prime rapidly becoming the preferred method of watching movies at home. Some companies have tried to bring streaming to the gaming market, with OnLive being the most notable, but the big console manufacturers have been mum on the subject. That is, until now. It was announced today that Sony is purchasing Gaikai, another popular cloud-based video game streaming service.
The deal—just inked for $380 million dollars—gives Sony complete access to the Gaikai infrastructure, which will be integrated into a new streaming service. Details on how the new service will be implemented are not available at this time. "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," said Andrew House, President and Group CEO of SCEI.
The Gaikai service—created by ex-Shiny Entertainment alum David Perry— streamed PC games from on-site gaming PCs to the home PCs of subscribers via high speed internet. It’s unclear at this time if the acquisition of the service would mark SCEI’s steps into PC gaming, or if the new service would be a streaming version of PSN. It should also be noted that, while streaming would be possible for the PS3 and Vita systems, there have been rumors that the next generation of consoles wouldn’t be able to play used games, and this news seems to support that ongoing theory.
Press Release
SONY COMPUTER ENTERTAINMENT TO ACQUIRE GAIKAI INC.,
A LEADING INTERACTIVE CLOUD GAMING COMPANY
SCE to Build a Cloud Service Bringing Gaikai's Cloud Based-Streaming Technologies into Its Network Business
Tokyo, July 2, 2012 – Sony Computer Entertainment (SCE) today announced that it entered into a definitive agreement on June 30, 2012 (Japan Time) to acquire Gaikai Inc., the world's leading interactive cloud-based gaming company, for approximately USD 380 million. Through the acquisition, SCE will establish a new cloud service, ensuring that it continues to provide users with truly innovative and immersive interactive entertainment experiences.
"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," said Andrew House, President and Group CEO of Sony Computer Entertainment Inc. "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."
"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."
Established in 2008 and headquartered in Aliso Viejo, California, Gaikai has developed the highest quality, fastest interactive cloud-streaming platform in the world that enables the
streaming of quality games to a wide variety of devices via the internet. With this acquisition, SCE will establish a cloud service and expand its network business by taking full advantage of Gaikai's revolutionary technology and infrastructure including data centers servicing dozens of countries and key partners around the world.
The transaction is subject to certain regulatory approvals and customary closing conditions.
SCE will continue to aggressively expand a new world of entertainment through the introduction of innovative technologies and the delivery of amazing experiences.
About Sony Computer Entertainment Inc.
Recognized as the global leader and company responsible for the progression of consumer-based computer entertainment, Sony Computer Entertainment Inc. (SCEI) manufactures, distributes, develop and markets the PlayStation®2 (PS2®) computer entertainment system, the PSP® (PlayStation®Portable) handheld entertainment system, the PlayStation®3 (PS3®) computer entertainment system and the PlayStation®Vita (PS Vita) portable entertainment system. SCEI has revolutionized home entertainment since they launched PlayStation in 1994. PS2® further enhances the PlayStation legacy as the core of home networked entertainment. PSP® is a handheld entertainment system that allows users to enjoy 3D games with high-quality full-motion video and high-fidelity stereo audio. PS3® is an advanced computer system, incorporating the powerful Cell Broadband Engine and RSX processors. PS Vita is an ultimate portable entertainment system that offers a revolutionary combination of rich gaming and social connectivity within a real world context. SCEI also delivers the PlayStation® experience to open operating systems through PlayStation®Mobile, a cross device platform. Headquartered in Tokyo, Japan, SCEI, along with its affiliated companies, Sony Computer Entertainment America LLC., and Sony Computer Entertainment Europe Ltd., and its division companies, Sony Computer Entertainment Japan and Sony Computer Entertainment Asia develops, publishes, markets and distributes hardware and software, and manages the third party licensing programs for these platforms in the respective markets worldwide.
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