Submitted by FanOfGaming 1241d ago | news

Sony Computer Entertainment To Officially Acquire Gaikai

Dual Pixels - We knew Sony was holding out on E3 and it's finally surfaced that Sony will officially be acquiring the cloud streaming service Gaikai. To keep the chatter to minimal, here's the official press release below. (PS Vita, PS3, PSP)

Alternative Sources
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sinncross  +   1241d ago

Guess it was true!
#1 (Edited 1241d ago ) | Agree(54) | Disagree(2) | Report | Reply
jujubee88  +   1241d ago
Yup. There is a SCE press release and everything.

(Man, I would swim buck naked in a pile of 380 mil $1's. Just sayin'!)
nukeitall  +   1241d ago
I'm questioning if it is worth it. Think about it, anyone can pretty much build and employ this technology so why spend $380 million?

It's not like Sony needed Gaikai's customers. The Playstation brand is far stronger than Gaikai.


If I had $380 million, I'd buy an Hawaii Island like Larry Ellison of Oracle, and then spend the rest of my time towards investment charity!
jujubee88  +   1241d ago
Hey, that is a pretty sensible way of spending those riches. You get to be on an island where people do not hunt you or bother you, plus you can donate to a charity you want. (I did not rationalize anything out, I just wrote down a gut feeling of what I would do with that money.)

Maybe, it really was not as simple as just spending $380 mil. I think Gaikai have their tech patented (like Onlive), so there must be a reason.
BattleAxe  +   1241d ago
Looks like Sony will now have a presence on PCs, Tablets and Smart Phones. I'm sure all those Apple customers can't wait to be playing Sony exclusive games on their iPads XD
JoySticksFTW  +   1241d ago
"I would swim buck naked in a pile of 380 mil $1's"
I admit it.

Scrooge McDuck came to mind immediately :)

Except he's probably swimming in 380 mil $100 dollar bills.

He wipes his arse with $1's.
miyamoto  +   1241d ago
The PS3 Fortress drops the bomb!
Oh CRAP! Would Samsung Galaxy be the next official PlayStation Mobile Platform Partner!!!!

This is too good to be true!

If Sony lands PS Mobile on Google hardware its Sayonara to the competition.

This is gangstah! Backwards compatibility will be a non issue anymore.

Happy times for gaming up ahead.
Sony is always one step ahead. More free games.
#1.1.5 (Edited 1241d ago ) | Agree(24) | Disagree(6) | Report
gaffyh  +   1241d ago
This is huge news for PlayStation, and shows that Sony are really thinking ahead. I wondered why all the rumours came out before E3 and then we heard nothing at E3, perhaps something will be announced at GamesCom?
Squall5005  +   1241d ago
Just to warn you...

sjaakiejj  +   1241d ago
It was bought in shares valued at $380 million though, so there aren't any actual bills. If Sony were to go bankrupt, Gaikai's owners would earn absolutely nothing on this deal, and they're probably not allowed to leave the company or sell the shares for X number of years.
Diver  +   1241d ago
sorry nukeitall but not anyone can do it. onlive has tried but gaikai has less lag an better image quality. if anyone could do it ever one would. sony been leading ever new format and digital distro is the next one.
LAZL0-Panaflex  +   1240d ago
I called it. Tablets and smart phones. Read my history. Now the question is ps+ equals free access? Or is it free for all psn,....my guess you can buy the games cheap outright and ps+ is beefed up big time. Imagine the demos and trials zero downloads now, and nomore space taken up on my harddrive. I wish i could see microshafts reaction.
Patriots_Pride  +   1240d ago
Lol - Just dont dive into a vault full of gold.

Related video
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sikbeta  +   1240d ago
Massive trolling lol they were denying the whole deal for months already, haha

I hope they can come up with something awesome with the so called "future of gaming"... like... Streaming PS2 games on Vita, :drool: Cloud Based Backward Compatibility :O
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MaxXAttaxX  +   1240d ago
Blasphemy  +   1240d ago
@ nukeitall To get rid of competition.
SilentNegotiator  +   1240d ago
It had better pay off. They're in no position to make huge risks without fast, strong rewards.
RustedMan  +   1240d ago
that would be alot of papercuts.
Persistantthug  +   1241d ago
I might be jumping the gun...but I think this means no CELL PROCESSOR will be required for PS4
If Gaikai can deliver PS3 Backwards compatibility to the PS4, then this solves their tech problem with how are Sony gonna deliver B/C with no Cell since they were reportedly using AMD as a CPU/GPU package.

The issue wasn't so much the games on disk....but more importantly, was the games everyone purchased in the PSN store.

Of course, with a Gaikai service...they can now do both.

Awesome :)

Edit in.....
*obvious sar* (never mind)
#1.2 (Edited 1241d ago ) | Agree(32) | Disagree(9) | Report | Reply
shoddy  +   1240d ago
Sony and vita is TEH DOOOOOOMMM!!!!!!!!
ChunkyLover53  +   1239d ago
This isn't true backwards compatibility though, I thought the same thing pretty much, but Sony will obviously charge people for this "backwards compatibility". So it'll be just like the PS2/PS3, you'll have to pay for the games again.

I'd take hardware or emulated backwards compatibility any day of the week.
GribbleGrunger  +   1241d ago
This is BIG! I've been saying for quite some time now that the PS4 will be Sony's last console. It will cater for the gamer who wants to download from PSN, the gamer that wants a hard copy and the gamer who wants to subscribe (probably with PS+) to new gaming experiences.

What this means for the future is that Sony will only have to upgrade server side and there will be no need for another console, just an improved build of PS4, rather like Sky Boxes do now. BC is assured and every Sony branded product will use the cloud in one way or another. People wonder why Sony aren't worried about the Vita... well here's why
R6ex  +   1241d ago
Sorry, but PS3 will be Sony's last console. With Cloud Gaming, you don't need much processing power at the gamer's end. PS3 will be more than enough to stream any future-gen cloud games.

Gaikai has already hinted that one of the console-makers [Sony] won't be making a new console [PS4]:
ravinash  +   1241d ago
Your forgetting the gaming is a world wide industry.
While places like the US, Japan and Even the UK in some places will be able to handle the traffic from streaming games.
Most places it the world are still very limited if they have any connection at all.

I'm sure Sony will be building on such services in future to stay in the game and offer many services, but there will still be a console for many years to come while it's still cost effectve to continue selling to such markets.
nukeitall  +   1241d ago
I don't see this as a good thing at all. Whatever implementation they are doing, is just another iteration of Gaikai.

Did any of you use Gaikai before the merger? Why would you think you would afterwards?

Fact of the matter is, with excellent internet connection the experience is still subpar. Heck, I avoid remote desktop or remote control software because it is sloooow. That uses far less bandwidth than say an intensive game that requires lag free input.

If you can't even roll out, digital only sale of games on console yet, we are a far way from gaming in the cloud to replace what we have now, let alone in next generation.

I don't even see how BC is going to work without charging you more for each game. How are they going to verify you own the game? Have you mail it in? Disc verification isn't likely possible as that needs to be planned in advance. Will this be another PSP Go trade-in fiasco?

Waste of money Sony! You could have saved it and build the network out yourself. This isn't rocket technology and is fairly easy to do.
Patriots_Pride  +   1240d ago
Sure ignore the millions of customers who live in 3rd world countries where internet is a luxury.
dead_eye  +   1240d ago

Are they really going to be early adopters of a new console? If not then your not really losing out on much. Cheaper old tech would probably make you more money.
Tru_Blu  +   1240d ago
Day it goes all digital is the day I quit gaming. One example is I got AC:Revelations at BB for $19.99 new. On PSN it costs $59.99. When the market is cornered prices are going to go through the roof.
TheRealHeisenberg  +   1240d ago
@ Tru_Blu

I don't think this acquisition is a bad thing. I do agree with your points though. Hopefully there will be enough competition out there to keep things balanced.
Blacktric  +   1241d ago
One of the best moves Sony ever did. Think of the damn possibilities. Gaikai, even in its current state, is a great service. It's free, it's fast, it's available to many countries as long as you have enough bandwidth. Now imagine being able to literally stream PS3 games like Killzone 3 onto your Vita or like the earlier reports suggested, being able to play PS2 classics like Hitman 2 that cannot be ported to PS3 due to technical difficulties. Whatever Sony is planning, I am sure it is going to be amazing.
adonis183  +   1241d ago
omgg yess ,, cant wait for this. This is fucking awesome i always went to the library at school to use gaikai. I hope sony includes that new router N on the slimmer PS3.

SONY Rulesssss
bobbyluv  +   1241d ago
This also might mean they'll update the ps3's flash player since gaikai was made to run on a browser.
GuyThatPlaysGames  +   1240d ago
This "cloud gaming" is not the future of gaming.
JoGam  +   1240d ago
Then what is sir?
GuyThatPlaysGames  +   1240d ago
The good ole disc is still the future!
Braid  +   1240d ago
In fact it actually seems like the future of gaming, it's just this future I'm talking about is not a close one. Maybe after the next (and possibly the last) physical media oriented consoles, in the following 10-15 years.
onyoursistersback  +   1240d ago
"and they say Sony is broke?!? is that another rumor to???"
demetreHG  +   1240d ago
Nobody knows Sony financial situation then f..ckin Sony ( and they ain't broke ,far from it )

I think this a awesome news plus there isn't going to be any PS4 which even better news =D

agree or don't who cares that is the truth !!!
Eyeco  +   1240d ago
yeah now this furthers the question...

PS4 to have cloud gaming capabilities ?
Jamzluminati  +   1240d ago
Sony proving why they are the best at this whole gaming thing.

Motorola  +   1241d ago
A rumor that was true??
Pandamobile  +   1241d ago
Not sure how I feel about this.
3GenGames  +   1241d ago
Like it's insurance for the company they're buying, but destined for failure when they figure out people will not give up actually being able to own a physical product instead of renting something until they take it away from you.
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NJShadow  +   1241d ago
There's still gonna be a pretty large demographic that goes after this form of content delivery.

I personally prefer buying physical copies of games, but I know a lot of folks who already prefer buying and playing games with the touch of a button. While I'm not sure if I'd use it, I think it's gonna be huge. (Actually, who knows, I may very well end up using it...)
nukeitall  +   1241d ago
I think technology increase will outgrow the need for investment into the cloud. We are soon going to hit a ceiling due to 1080p HD being the standard for at least a decade if not two.

That means, after next generation consoles will be cheap so why bother with laggy streaming service. I would rather build the ability to intelligently stream game assets (like textures and sound) so that you can immediately play, but run it off your local cheap hardware.
fr0sty  +   1241d ago
Tell that to every PS+ subscriber... or live subscriber as well since you only "rent" your online play.
badz149  +   1241d ago
that's why STEAM is doomed, right? /s
soljah  +   1241d ago
actually quite the opposite Sony has learned thru the PS plus service that people are ready to pay a fee to have access to games. now think about having PS+ but no dling want lbp2 click on it and start playing
GodHandDee  +   1240d ago
This is a very forward thinking approach by Sony and it's a good one. Going into the future they will already have a solid background in streaming and will definitely use it their gaming consoles as an option to consumers. And also this means they will get money from other sources such as Samsung that makes use of Gaikai in their TVs.
telekineticmantis  +   1240d ago
Hopefully this means we'll be able to play Planetside 2
on PS3. Just when I was considering going full PC exclusive next gen, they restore my faith in consoles.
CaitSith  +   1241d ago
KingOptimusOrigin111  +   1241d ago
Good Job Sony!!!
#6 (Edited 1241d ago ) | Agree(20) | Disagree(5) | Report | Reply
joab777  +   1241d ago
This is awesome for Sony...a bit of good news in a really bad year for Sony. And great for next Gen consoles, though it will b interesting to c how they implement it exactly.
xtremexx  +   1241d ago
A really bad year?!?!!?!?! Lol what are you talking about.
Oh_Yeah  +   1241d ago
this is great! but my guess is your going to have to hook your ps3 directly to a computer or purchase an updated wireless adapter though...because the wireless in the ps3 isnt all that great unless you have some ridiculous speeds, i dont think itll be quick enough for decent loading times, no lag or 1:1 input from your controller for the majority...hope im wrong though.
#8 (Edited 1241d ago ) | Agree(4) | Disagree(5) | Report | Reply
Oh_Yeah  +   1241d ago
the great thing about this...even tho there will be some lag, youll probably be able to play all the pc exclusives on your ps3 like amnesia, diablo, the witcher etc.
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black911  +   1241d ago
HipHopGamer reported this long ago. I guess it was true.
Ulf  +   1241d ago
I will NEVER, EVER sign up for a streaming game service, and put up with 100-250ms extra control lag, at a minimum. If that's the future... I got better things to do with my time.

That inherent lag will *never* go down -- you can't "fix" the frickin' speed of light through 1000+ miles of fiber optic cabling, or, more importantly, the throughput of the routers that direct the streaming video/music/email spam/pr0n traffic of the internet elsewhere so you can have a good gaming experience. IPv6 will help a *little*, but by then even more fools will be iTunes'ing television to their mobile devices, and the problem will be even worse.
#10 (Edited 1241d ago ) | Agree(14) | Disagree(20) | Report | Reply
Sanquine90  +   1241d ago
Fool , it could be that you do not have to download a DEMO. Therefore, you could play the game immediatly on demand:)
humbleopinion  +   1241d ago
Yes, this is really sad. I'm still hoping that the main purpose of this purchase will be for serving as a backward compatible + steaming on demand demos.

But for actual games? God forbid. Streaming compression makes even 1080p streams look worse than current gen games, and the lag is a killer for action intensive games.
Shikoro  +   1241d ago
I agree. If this becomes the standard "medium" for playing games next-gen and there is no way for me to play from a disc or a hard drive, I quit gaming.
NastyLeftHook0  +   1241d ago
This news is also important because it shows investment in new products with the obvious attempt to provide an optimum gaming experience and shows a glimpse into the future of playstation products as we know them.

I cannot think of a more exciting time to be a gamer, the advancements in gaming should be phenominal and the creative minds may once again blow us away next gen as they have with this one.
Y_5150  +   1241d ago
Now that rumor was true, I think that 254 page document for the 720 rumor is true! Not sure if the number was correct.
NastyLeftHook0  +   1241d ago
The access of information in this digital age is staggering, Many things have been revealed to be true, but nonetheless tons of things were debunked.
Y_5150  +   1241d ago
Examples: NGP being called PS Vita rumor was true despite people whining on how stupid the name was at the time.
A new God of War for PS3.
Oh and Plastation All Stars Battle Royale, we all knew that for a long time before that was announced. Also people whined about the name as well at the time. :P
izumo_lee  +   1241d ago
It was rumored that David Perry was willing to sell Gaikai for $500 million (so $380 million is a steal) so those rumors about Sony acquiring the company were true. With this acquisition Sony is more prepared for a digital OPTION and in time with more capable internet be a better service, then ever before. The enhancements to the PSN will be greatly increased thanks to this.

Being a PS plus member i can not wait to see what other services Sony will provide with the purchase of Gaikai. Anywhere close to the level Valve provides with Steam is a 'plus'.

This can only be a positive & will greatly improve the foundation of Sony, not just the Playstation brand....IF they do not mess it up.
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VsAssassin  +   1241d ago
Hmmm... could be good; however, Onlive has this kind of service and I'm not sure if it's getting enough supporters to begin with. That said, it's possible that Sony is acquiring GaiKai not for the streaming service alone, but maybe for a much more profound GaiKai technology they're planning to infuse with the PS4.
black911  +   1241d ago
But I have a upcoming gaikai app on my samsung TV for streaming games. I havent checkecked the app in months but this app led me to believe that this was all just a rumor.
wenaldy  +   1241d ago
LOL HHG prophecy was true.
El_Assenso  +   1240d ago
LMAO!!! Yep!!!
LycanGav  +   1241d ago
GribbleGrunger  +   1241d ago
It's good to know that someone else can see what this means. bubble to you, sir
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LycanGav  +   1241d ago
It's not hard to visualize a point in the near future where Sony can simply iterate on all it's hardware and use this service to deliver a large library of games to all. No more expensive R&D developing consoles, the battle now will be securing content.
GribbleGrunger  +   1241d ago
And that content WILL get secured. This service will come through Bravia TVs, Laptops, pads, phones, Vitas and anything related to Sony. with Sony 1st party games leading the way, this service will grow many times over the years

say goodbye to a potential PS5 people, PS4 is going to be the last console we will ever see from Sony. who needs upgraded hardware when infinite upgrades can be accomplished server side.

I'll still buy a hard copy myself, but I might just play a game or two to find out what they're like BEFORE I buy. It's not just about games either... but I'm a gamer so I'll leave that to others to expand upon
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TemplarDante  +   1241d ago
Cloud gaming is a way of expanding.
Now this and Playstation Mobile, the world of Playstation has entered the world of Android OS integration.
Good on Sony.
KonaBro  +   1241d ago
DiRtY  +   1241d ago
1.2 billion USD loss last year for SCE and they go out and buy Gaikai for another 400 million... And people were scared that MS is moneyhatting.

user7792788  +   1241d ago
Gotta spend money to make money.
Mikhail  +   1241d ago
Deficit in the balance sheet is different from net loss in the income statement. Just google those to know the difference
plmkoh  +   1241d ago
Finally someone who knows about business without regurgitating doom 'n gloom just because someone told them that was the case.

Working capital (cash flow) is the most important factor in a business, it doesn't matter how profitable you are selling pancakes for $100 a pop, but when you don't have enough incoming cash to pay back your loans, you're going to would up pretty quickly.

That is what Sony has: Cash flow, they just aren't profitable.
Chaostar  +   1241d ago
"The Cell Broadband Engine that powered the PS3 cost $400m to develop; the main SoC for the incoming console is likely to be a 3D stack incorporating thru-silicon-via technology and could be the first $1bn hardware design project."

Tyre  +   1240d ago
@Chaostar, thx for the link...most important information. This is some serious hardware that Sony is developing for the PS4. It is very clear that current networks won’t work and have limitations in bandwidth. Sony doesn't want to use Gakai at 1st, but later in the lifetime of the PS4.
Outside_ofthe_Box  +   1240d ago
You seem upset that Sony bought it instead of MS..
DigitalAnalog  +   1241d ago
Bold move by Sony.
I believe they are preparing the necessary tools needed to combat the next-gen. So far, there has been a lot of stuff that happened this gen was unpredictable such as the rise of mobile gaming and the casual expansion from the Wii.

That being said, I don't think SONY is going all out with "cloud" gaming. They would most likely test the waters with cloud such as possible PS2 game streaming. Maybe make PS Home a streaming service (which would benefit if Home was powered by actual PC's).

Depending on the situation, the cloud may introduce new features to the system itself. It really does depend how the market trend goes next-gen.
Malice-Flare  +   1241d ago
so, what does this mean for PS4, especially that nVidia is providing the backbone for Gaikai? probably nothing, but PS-PS3 compatibility is now guaranteed for PS4 through streaming...
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jonboi24  +   1241d ago
Wait so they bought out Gaikai and are now partnering with Onlive with their Sony internet player, damn SONY. Are they trying to corner the cloud gaming market?
adonis183  +   1241d ago
lol ps vita battling nintendo PS3 battling microsoft sony gaikai battling onlive lol sony rules
THC CELL  +   1241d ago
And people say Sony have no money. This is not the only company Sony bought out this week lol
Fishy Fingers  +   1241d ago
It's not that they dont have money, rather they're failing to MAKE money. Their net worth is 10% what it was a decade ago.

I guess "you gotta spend money to make money" blah blah. They're gaming division being one of the few to turn a profit, this seems like a smart way to go. Less on consumer hardware, and your games on any (Internet linked) device you want, Sony or not.
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ravinash  +   1241d ago
With less people needing to make the investment to get the hardware, it will be easier to sell more games.
While I perfer to use my own console because then I don't have to worry about line speed and when they decide to pull a game off the system.
I can see the benefits of doing this to bring new people in who normally don't have a console.
crinale  +   1241d ago
It begins...
miDnIghtEr20C_SfF  +   1240d ago
And it only took 6 years for it to begin, and the end of a console generation!
C0MPUT3R  +   1241d ago
SONY keeps buying all these companies.
And I'm always told they have no money and they're going out of business.
The haters need to come up with some new propaganda.
Fishy Fingers  +   1241d ago
And watch opinions towards cloud gaming change on N4G.
chela  +   1241d ago
yea, now they gna tell you hundreds stories about lag in kinect but non about cloud gaming xD
J_Cob  +   1241d ago
Your comment actually scares me because I know it's going to happen.
Silly gameAr  +   1241d ago
I'm more expecting a flood of articles claiming how cloud gaming is doomed because Sony decided to get in the game.
DonMingos  +   1240d ago
Not yet... Now is time for the birth of new breed of Cloud haters, that will become inconditional lovers of the system, when M$ buys Onlive
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Jazz4108  +   1240d ago
Ms will just make there own version of cloud gaming through live if it takes off. They don't have to buy companies to have it if you can create your own. Anyways I think this is a horrible move for a non profitale company to buy another company that's tanking. We are at least 10 years out to have this kind of gaming even work so I hope sony is inito for the long haul or this is a terrible move.
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HappyWithOneBubble  +   1241d ago
Sony is getting the PS4 ready. This is a good buy for them.
IHateYouFanboys  +   1241d ago
uh oh........if sony stream their games to tvs/blu-ray players/ps vita/ps3/phones etc, that then means that they will have ZERO exclusives for their fanboys to cream themselves over!!!!! good lord, what have they done!?!?!?

seriously though, i think its probably a good investment, but 380 mil is a hell of a lot of money for something thats unproven and unlikely to be mainstream for another 10 years, especially for a company thats in as bad a financial state as sony is.

also, Gaikai isnt available in my country, probably never will be, and even if it was thered probably be 1 server location in the entire country meaning its impossible to get better than 300-400ms of lag, rendering streaming games completely useless. yay australia and our prehistoric internet infrastructure.....
DonMingos  +   1240d ago
Where do you live? Pluto??

just give it a try: http://www.gaikai.com/

If it is available here on Portugal with no breaks... it is available everywhere
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DivineAssault  +   1240d ago
they still have a ps4 coming, vita, & many ps3 titles ALL physical copies as well as digital! gaikai will only ADD to the diversity
LNDCalling  +   1241d ago
For a company purported by many to be in financial difficulty they aren't half flashing the cash!

In 2012:-

USD 1,000,000,000 (Invested in camera image sensor production)
USD 623,000,000 (Invested in Olympus)
USD 380,000,000 (To acquire Gaikai)
USD 2,200,000,000 (EMI - as 50/50 JV assume circa USD1bn from Sony)
USD ??? (Sony and Panasonic OLED TV joint venture)

And late 2011:-

USD 1,470,000,000 (To acquire Ericsson)

And these are just a few of their recent investments / acquisitions.

Back on topic, I think this is a good move in all sorts of ways especially if implemented correctly and one that could send shockwaves through the industry depending what they do with it… interesting times!
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