Sony Officially Acquires Gaikai, Why?

One of my (and many others) predictions for E3 was Sony announcing some sort of digital service expansion. Its a bit after E3, but the prediction seems to have finally happened. Sony has announced that they have acquired Gaikai, a cloud based digital streaming service similar to OnLive, for 380 million USD dollars. You can read the official press release below, but my overall question is why? Why did they need to acquire the service? I do not mean this in a negative way, I honestly want opinions on what you think Sony will do with this.

The reason I ask the question is because that is one big price to pay. Sony could have easily developed a similar service and already have a strong namebrand behind it with PlayStation, a good lineup of games, and easy access to third parties with their partnerships. I noticed the press release stresses bringing the service to other platforms, but those points still stand.

It will be awesome to see what they do with it none-the-less. If they can further develop the Xperia Play, tablets, and even the Vita for a cross breed of games with PS3/PS4 that will be insane. I’m not too big of a fan of buying things digital, especially renting them from a cloud service, so I hope it stays with that focus and doesn’t outright replace the console system.

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.