Sony Spends $380 Million to Buy Cloud Gaming Company Gaikai - The UpStream

Sony Spends $380 Million to Buy Cloud Gaming Company Gaikai

posted Wednesday Jul 4, 2012 by Nicholas DiMeo

Sony Spends $380 Million to Buy Cloud Gaming Company Gaikai

It was only last week when newly-appointed CEO Kaz Hirai stood in front of employees and investors alike to defend and explain the company's revival plan. After the meeting, it seemed that investors weren't sold on the idea that was first announced in April and it felt like not enough details were given to make anyone feel confident that Hirai can turn this boat back in the right direction.

Now this week it looks like Sony is moving quickly on proving to their investors that they're going to try and do whatever it takes to succeed, even if it means spending millions on acquiring a new company. Sony has purchased cloud-based game company Gaikai for $380 million. Gaikai is a direct competitor of OnLive, who is one of the few companies making streaming 3D games actually playable.

Will this move help or hurt Sony? We have the details after the break.

This acquisition works for both companies involved. For Gaikai, they have the hardware to support cloud gaming on a full scale, however they do not have the distribution or brand power behind the company, which is where Sony excels. For Sony, they clearly have the experience in gaming and marketing in general, from their classic PlayStation to the PS Vita.

Additionally, Gaikai will play the missing piece to the Sony puzzle. Ever since their E3 announcement about PlayStation Mobile, we were wondering what Sony had up its sleeve. We knew the end goal was to bring more intuitive games to the Xperia line of phones as well as the Vita and the Sony tablets, but we weren't sure how that was going to pan out. Gaikai is the answer as Sony can now provide a reliable, proven solution to their mobile devices, allowing intense games like God of War: Ascension to be played on the go without losing any of the visual or gameplay aspects from the console version. This could give Sony the push that it needs to stay competitive and get ahead of the pack.

Sony has only commented by saying that it "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." We'll keep you posted on what they mean by that as we get more information.

Do you think this is a right move for Sony? Do you want more hardcore titles for your Vita? Tell us in the comments section below.

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