Sony to buy Gaikai cloud gaming for £242m

Gaikai cloud gaming is to be sold to Sony for £242m. Gaikai games are not downloaded; rather they are streamed live and can be played on PlayStation 3 machines. Gaikai is one of the main players in the gaming market along with OnLive.

The infrastructure behind Gaikai and data banks will be run by Sony under terms of the new deal. Gaikai’s founder, David Perry said the sale represented a important step forward for his team, which could benefit from Sony’s global network and vision.

Cloud streaming enables users to take a continuous feed of data rather than physically downloading a product onto a platform console. This gives players more flexibility in choice and should lead to a lower cost gaming machines. Instead of controls interacting on their own machine, button pushes sent signals to the servers where the game was hosted.

OnLive recently announced it would offer cloud gaming as part of its LG Smart Televisions, after developing streamed gaming in 2010. The new service means TV owners would not need a separate console to play games and instead could stream games directly into their TVs, which would come complete with the controls required right out of the box.

Sony’s spokesperson Andrew House, CEO of Sony Computer Entertainment stressed that the purchase was a good fit. Gaikai’s strength in technology and Sony’s specialist knowledge of the gaming platform market would give users unprecedented experiences of cloud technology.

House empathised that gamers would receive a best-in world cloud service that would give access to more and better games and faster streaming speeds. He went on to say that high quality graphics and audio on a variety of devices meant the purchase of Gaikai had the potential to change the way gaming technology was delivered.