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Submitted by Sinner101GR 1319d ago | news

Microsoft reacts to Sony buying Gaikai: "Cloud is a big area of investment for Xbox"

Sony made a huge splash in the games business today, picking up cloud gaming firm Gaikai for a cool $380 million. Rival Microsoft isn't sitting idly by, however. When GamesIndustry International asked for reaction to the Sony news, a spokesperson noted that the cloud will continue to be hugely important for Microsoft. (Gaikai, Microsoft, Sony, Xbox 360)

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donniebaseball  +   1319d ago
I think the Gaikai news is huge for Sony. MS should just go buy OnLive imo.
cstyle  +   1319d ago
They don't need to. They have the resources to have their own cloud gaming. besides sony really needed to do what they did in order to get back where they were in the TV market.
Jihaad_cpt  +   1319d ago
have you heard of Microsoft they by everything. Only once money cannot work will they commit other resources. Yahoo for example.
ChunkyLover53  +   1319d ago
I just said the same thing, everyone will look to Microsoft to buy OnLive, but I don't see that happening. Microsoft is well known for wanting to run their own services. OnLive might be an option, but I think their plan has always been to build Cloud from the ground up.

If you look at the "leaked documents", it clearly states Microsoft is looking to have Cloud in a few years. I'd think that means they have had a plan on the books for a while now.

I tend to think Sony bought an established service in order to offer some semblance of backwards compatibility with the PS4, if its true they dropped The Cell, they will need a service to offer people the ability to play those older games.
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nukeitall  +   1319d ago
I think Sony is in panic mode and decided to buy up Gaikai. There is no reason why MS would want OnLive (or Gaikai) for that matter. The technology isn't super secret or particularly difficult to do. In fact, nVidia is the provider for Gaikai with GeForce Grid which is technology anyone can buy.

So if the technology isn't what Sony want, the customer base is unlikely as there likely isn't many and branding is kind of useless since Playstation is a far stronger brand. The only thing I can come up with is patent, but I can't imagine there being many. This isn't some super high technology stuff, so the final thing is infrastructure and the only reason you want that is because you yourself can't scale up that fast.

Which makes sense, since Sony isn't exactly a player when it comes to cloud technology. Still $380 million is steep, very steep.


MS aren't exactly going for resources when they buy. They usually go for instant marketshare something that is extremely hard to get even if your product/service is better.


I hardly think paying $380 million for BC is worth it for a service that gives you sub-par experience combined with a need for *very* high speed internet. By that time, PS3 will be dirt cheap anyhow and the Cell chip will be dollars in cost, not tens.

Best case scenario, they are going to give access to PS4 for PS3 users as a service. Assuming they have fast enough service.
SilentNegotiator  +   1319d ago
They had resources to make their own social networking, too....
Neko_Mega  +   1319d ago
Really? So how is Sony in panic mode? They got more new titles coming out then 360 has. So far all we know about the 360 is it is getting Smartglass and some new titles.

Where Sony is sitting on a huge list, plus who says this is for PS3? For all we know. Sony could be buying this for PS4 and besides I think Microsoft has been falling behind with the lack of titles.
DeadlyFire  +   1319d ago
Microsoft is more likely to partner or buy up OTOY. They have tested their service mostly on Microsoft hardware, phones, and X360 game controllers since 2008.

OnLive is great and all, but I don't believe Microsoft is 100% towards them.
nukeitall  +   1319d ago

What part of my comment was unclear?

Why would a company buy another company when the benefit is minimal? It seems Sony is buyin up Gaikai for the infrastructure, not the technology since it is widely available.

The only reason you buy something like that which is available to anyone, and pay premium is because you are unable to build and scale it up yourself and you want it FAST!

This is a business strategy, not I got so many games releases so I'm immune to the *potential* shift in the industry.


OnLive uses hardware compression, but clearly there isn't a problem for Gakai to implement similar technology. In fact, Gaikai uses nvidia Grid, which anyone can purchase. Clearly the patent isn't a necessity.

Certain patent are so obvious you can't really work around it, unfortunately this technology isn't that. Many forms of this already exist prior so I don't believe it's worth half a billion dollars.
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sjaakiejj  +   1318d ago
"The technology isn't ... particularly difficult to do"

Lol, you have no idea how clueless you sound. The amount of technology that has to go in to a cloud gaming platform such as OnLive and Gaikai is extremely complex. It requires years of testing and refining to get it right, and that's even disregarding all the patents that Gaikai and OnLive have in the technology (there's far more to it than just video compression). You can't just "build one of your own". It requires a large investment, a lot of risk and extremely competent programmers.

Implementing it isn't easy by any stretch of imagination. Think about the different factors involved - users are guaranteed to have an unreliable connection, but you can't let that affect gameplay. How about latency? Distance to servers? Dynamic Compression? How about variations in bandwidth and network load? All of these problems have to be invisible to the users, and that's where the difficulty comes from.
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nukeitall  +   1318d ago

"Think about the different factors involved - users are guaranteed to have an unreliable connection, but you can't let that affect gameplay. How about latency? Distance to servers? Dynamic Compression? How about variations in bandwidth and network load?"

You mean how this is something people have implemented all along with online video services and multiplayer games?

This isn't some vodoo technology and is something these companies have been refining for years. Where do you think CDN comes from? Even nvidia has a product called GRID that is used by Gaikai for just this purpose. It's practically off the shelf!

This is well known problems, and if you can't do it with the size of Sony for far less than $380 million, you got major problems. The answer is, they are panicking and buying up infrastructure, because they can't scale up fast enoug.

I hate to say I told you so:
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sikbeta  +   1318d ago
Competition is always good, if this means MS going the same route, bring it on!
sjaakiejj  +   1318d ago

Lol at the troll article you posted. Not that it proves anything, so I'm not sure _why_ you posted it...

OnLive took 7 years to develop, from conceptualisation to functional system. Gaikai started development later, but development still took 3 years, with the concept already in place.

What does this mean? 3 Years of development for a platform is a long time, and there's two reasons as to why that might be:
1) The system is extremely big
2) The system is very complex.

Online Video Streaming and Multiplayer games are a world apart from the technology used in Cloud Gaming. Latency and bad connections is not an issue for video streaming, as it doesn't matter if the user has to wait for a few seconds. Latency and bad connections have a lower impact on online games as well, as predictive algorithms can be used to approximate where a player is at any given time. The problem is, you can't do either of those things in Cloud Gaming. Input has to be precise, there is no room for error - predictive algorithms are thus out of the question. Latency is a major issue due to input, so ignoring that is also not possible.

These systems, as simple as they may seem to the end-user, abstract away immense amounts of technical innovations and accomplishments.They are, along with games, some of the most complex software systems in the world.

On top of that, with that $380 million which Sony paid in shares (e.g. they did not pay in cash), Sony immediately acquires a large list of intangible assets, such as patents, brand name and partnerships, as well as tangible assets such as Server Farms, User Base and Infrastructure.

GRID is a technology that supports the video compression ratio, but it still requires an extensive framework to make use of it. It's not some kind of magic device that does everything for you. It's comparable to a GPU - Just because you have a GTX680 does not mean that Command & Conquer 95 will suddenly have mind blowing visuals.
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nukeitall  +   1318d ago

First of all, you don't have to explain technology to me. I'm well aware of all of this as I work with it on a daily basis.

Now to the main point, since it took OnLive 7-years and then Gaikai 3-years, what do you think it will take now?

Fact of the matter is, technology moves forward and with each iteration it is far simpler. When Gaikai started, there was no nVidia Grid, so yes it makes it that much easier. Data is data, doesn't matter if it is an image, video or a text file.

"These systems, as simple as they may seem to the end-user, abstract away immense amounts of technical innovations and accomplishments.They are, along with games, some of the most complex software systems in the world."

Games? Potentially. Networks? Not so much, because most of the problems are almost exactly the same. Poor bandwith, connection quality and poor latency. Video encoding is a well known problem!

"Sony immediately acquires a large list of intangible assets, such as patents, brand name and partnerships, as well as tangible assets such as Server Farms, User Base and Infrastructure"

This is exactly my point. The Gaikai brand wasn't strong to begin with and the Playstation brand is far more valuable. Gaikai doesn't have a viable business. Heck, OnLive doesn't have a viable business yet whom is bigger and one of the earliest players.

All Sony got was some patents (probably very few valuable ones as the technology isn't groundbreaking) and server farms i.e. infrastructure. User base is probably negligable. That is why I think it was a bad deal for Sony.

"It's not some kind of magic device that does everything for you. It's comparable to a GPU - Just because you have a GTX680 does not mean that Command & Conquer 95 will suddenly have mind blowing visuals."

What? I think you are confused about the technology. Gaikai used to use software video encoding for their cloud games, but now uses nvidia Grid. What Grid does is provide two GPUs, one for partially hardware accelerated video encoding and another one for regular graphics with fast frame buffer access. This technology is available now for anyone to buy from nVidia and has nothing to do with "because you have a GTX680 does not mean that Command & Conquer 95 will suddenly have mind blowing visuals." The frame work is partially provided by nvidia, but nothing a team of engineers can't do for less than a million dollars in far less than 12-months.

The hard part isn't the technology, it is the infrastructure i.e. the server farms, but even that is far easier to obtain today than ever.
sjaakiejj  +   1317d ago
" I'm well aware of all of this as I work with it on a daily basis. "

And I'm President Obama

"Now to the main point, since it took OnLive 7-years and then Gaikai 3-years, what do you think it will take now? "
First game took longer to develop than those that followed as well, but those that followed all had a roughly similar development cycle.

I'm not even going to bother to respond to the rest, because of this:
"Games? Potentially. Networks? Not so much, because most of the problems are almost exactly the same. Poor bandwith, connection quality and poor latency. Video encoding is a well known problem! "

You make a fundamental mistake in your assumption here - Just because the problem is always the same does _not_ make it easy, _especially_ for distributed computing. How do you ensure the user actually receives the package? Do you use TCP or UDP? Why is TCP a bad choice for Cloud Gaming? Why is UDP a bad choice for Cloud Gaming? Those are the most basic questions that you can possibly ask, and yet the answer to the question of which protocol to use is already very difficult.

As for GRID, GRID is a technology that supports hardware encoding of video. Whilst it may speed up the process of encoding, it does not solve any of the networking problems, nor does it mean that having GRID technology somehow makes implementation of cloud gaming easy. If you actually had _any_ experience in this area whatsoever, you would know that.

Oh and 10 million users is "negligible"? I rest my case.
Patriots_Pride  +   1319d ago
@cstyle - you are correct by saying that MS can build their own cloud gaming service but OnLive holds a large portfolio of cloud gaming patents which includes U.S. patent #7,849,491 which key factor to the patent is low-latency video compression. This technology compresses video content and reduces lag seen onscreen, allowing users to play motion-based games running on servers thousands of miles away without seeing lag.

Some times its cheaper and easier to just buy a company for its patents than to pay royalties or try to find a work around the patent.
onyoursistersback  +   1319d ago
"was that a joke?!" lol.......
Mounce  +   1319d ago
Yea, and any Gaikai vs OnLive comparison shows truly what service is superior, Gaikai runs better quality and textures AND runs it smoother.
TekoIie  +   1318d ago
Lol that was just like the console war with Multiplat graphics XD.

There were areas where OnLive seemed to have an edge and then you thought Gaikai had the upper hand in area's. There was only one point though where i felt i could see little more detail on Gaikai.

But overall... Literally no difference when you play it unless you try to find differences...
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Mounce  +   1317d ago
There's definitely a difference, I have Amnesia on OnLive and it has a sort-of Mouse-lag, a 1-2 second delay that irritates the fuck out of me, it can get blocky-textured as hell for me too, my internet definitely as fine as in comparison, when my internet was bogged down one day even I tried playing The Witcher 2 on Gaikai and holy shit the graphics were better than what my i7 laptop could pull off! -_- AND it ran smoother than any experience I had with OnLive. (Laptop is Asus G73JH-A1 btw)
Imalwaysright  +   1318d ago
"I think Sony is in panic mode" So expanding their business and doing it 1st than their competition is an act of desperation? Sony clearly made market research and they believe that acquiring Gaikai will be advantegeous to them. They wouldnt just throw their money away if they didnt believe that it wasnt a viable business option.

And yes MS can make their own cloud gaming service and to be honest i dont know what it takes to start one up from scratch but i do know that Sony would have one advantage: market share and in business market share is everything!
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NYC_Gamer  +   1319d ago | Intelligent
I believe all 3 console brands will be involved in cloud gaming one way or another
Mr_cheese  +   1319d ago
smartest answer ;) bubble.
Arnon  +   1319d ago
I'm glad to see that the big names are considering all of this. Cloud gaming has a lot of potential.
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DeadlyFire  +   1319d ago
I do as well.

Gaikai - Sony
OTOY - Microsoft. Been tested on X360 controllers, Windows phones, and Microsoft branded devices since 2008 I believe.
OnLive - Nintendo

That's what I believe anyway.
Knushwood Butt  +   1318d ago
Nintendo will get involved last when the technology is a lot cheaper, and call it Mario's Cloud.
JBSleek  +   1319d ago
MS Onlive aquisition on the way!
HammadTheBeast  +   1319d ago
Doubt it.
SSKILLZ  +   1319d ago
shutUpAndTakeMyMoney  +   1319d ago
Funny all the technology comes from pc and is now going back to the source. pc.

When all the disks go away everyone will just be a cloud pc gamer. Crazy..
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NYC_Gamer  +   1319d ago
consoles are mini PC's that are just aimed towards gaming
Azmatik  +   1319d ago
LOL the game is held on a server not played off a PC at all
Bladesfist  +   1319d ago
LOL A server is a PC it has storage, memory, a processor and an OS. Even your router is running an OS and has the above.

Educate yourself.
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Rhythmattic  +   1318d ago
PC... "Personal Computer"

A Server is not.
sjaakiejj  +   1318d ago

A server is a computer, but not a PC. Whilst the terms Computer and PC have been used by the mainstream interchangeably, they do not mean the same thing.
Bladesfist  +   1318d ago
My laptop is a web server, It runs linux. It is a PC. How can you say it is no longer a PC because it runs a server (A server is a piece of software, not hardware...). I still use it for personal use.
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sjaakiejj  +   1318d ago

From your own link

"In most common use, server is a physical computer (a computer hardware system) dedicated to running one or more such services"

A server is only a piece of software in the case of client-server architectures, often used locally.

If you use to broad definition of a server, you're still incorrect - A server is a computerised process that shares a resource with a client process.

It is most definitely not a PC, but may in many cases be a computer. (Just because your truck is a vehicle does not mean that all vehicles are trucks. Likewise, just because your PC serves as a Server does not mean that all Servers are PCs. ).
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cstyle  +   1319d ago
"When all the disks go away everyone will just be a cloud pc gamer. Crazy.."

Not really...Cloud gaming will be streamed on TV too which was a smart move by sony to buy this Gaikai.
shutUpAndTakeMyMoney  +   1319d ago
Ok so stream games on a tv from a pc? still a pc gamer. A pc can be plugged into a tv now because it's the most flexible platform.
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sarshelyam  +   1319d ago
I completely understand what you're saying. The output doesn't matter when the source is predefined. You may be playing it on a mobile device, or a home console connected to a TV, but the reality is it's still PC gaming!
DragonKnight  +   1319d ago
Do you all want a star or something? You're acting like the PC platform is your child that just made the honor role. *sigh* PC fanboys.
Laxman  +   1319d ago
PC fanboys... They're the worst of the the worst.
LightofDarkness  +   1319d ago
Hey look everyone, it's dragonknight trying to antagonize PC gamers again! Go ahead, now it's your turn to cry about how beset upon you are by PC gamers and it's not your fault.
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Mr_cheese  +   1319d ago
@shutUpAndTakeMyMoney there will be no pc our end when using the TV, that is the point Cstyle is trying to make.
sarshelyam  +   1319d ago
And the point @shutUpAndTakeMyMoney has clearly outlined is that it doesn't matter what your output is, the source is PC-based. So while you may have the form factor of a home console and a television, you're streaming, via Cloud, PC-sourced gaming!
Azmatik  +   1319d ago
lol are u guys serious, ur tellin me when i stream a game from cloud my ps3 isnt doing any GFX or processing lol buncha bafoons. trying to make it sound like a PC could run AAA sony titles LOL the game is held on a server not played off a PC at all
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KwietStorm  +   1319d ago
LOL spin cycle on repeat with you guys
Bladesfist  +   1319d ago
@Azmatik You make console gamers look really stupid, your GPU is being used all the time, even when your PS3 is idle it will be at 0-5% When watching video content (Streaming) it will be higher. All the console will be doing is decoding and playing a streamed video feed.
Dlacy13g  +   1319d ago
If anyone thought cloud gaming was still a ways off I think this comment coupled with the Sony purchase of Gaikai all but seals the deal for streaming cloud gaming to be a major component of the next consoles from Sony and MS... and once again Nintendo is going to be left behind playing catch up in the online space.
LOL_WUT  +   1319d ago
Why disagree with this if its true? :)
DragonKnight  +   1319d ago
Because it's not true. Buying the company doesn't mean the infrastructure will suddenly pop up over night, and it excludes the countries who don't even have internet, let alone high quality broadband, or fiber optics based online. This is still just a dream, nothing concrete will come from this for quite a long time.
Dlacy13g  +   1319d ago
@DragonKnight, If you don't think both MS and Sony will be offering up a version of cloud gaming in their next console you are just lying to yourself. I am not trying to say they wont have a disc option but they absolutely will have some kind of rudementary services in place. If nothing else, streaming demos will be there.

With a service like Gaikai there is very little infastructure crossover needed if they intend to use it as a demo downloading service similar to what they do with Walmart. ( ) did you notice...POWERED by Gaikai..nothing elaborate, simple interface that could be put in at anytime gate in using your PSN account...go to the demo section and all the PSN demo are live streamed. And there you have it... cloud gaming, not replacing but complimenting traditional game delivery.
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LAWSON72  +   1319d ago
If future consoles are cloud based I will not buy them. If PC gaming becomes cloud based to gaming is dead to me.
house  +   1319d ago
they will be cloud based but they will not be fully cloud gaming sony or ms are not stupid enough to block out a majority of gamers, sony will have a blu-ray reader next gen for games and an option for cloud gaming
LAZL0-Panaflex  +   1319d ago
Even if it was free to play? Or $2 for call of duty? Come on now. Consoles are dinosaurs. A TV that does everything or a piece of plastic that only does games.....tough choice. These controllers will sync just to let you know.
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Campy da Camper  +   1319d ago
Let's wait and see how you feel when a physical copy of a game costs you $79.99 or you could pay half that to stream it. If they manage to eradicate all lag and the graphics are in HD, gamers with good bandwidth will flock to it like rats leaving a sinking ship.
MrBeatdown  +   1319d ago
A $40 streaming version and an $80 hard copy?

That's a highly unlikely scenario. The only difference is disc production, distribution and giving retailers their cut. That's not adding up to a $40 difference. And publishers have no reason to push streaming content using such a significant price difference.

Anything driving up game costs is likely due to production of the game, not distribution. In that case, that's going to be passed on to anyone buying the game, not just the those who want a physical copy.
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optimus  +   1319d ago
I really don't see disk games costing 80 bucks, even with the new systems. You said it yourself, "gamers with good bandwidth" which STILL is far less than gamers opting to buy the actual disk... Great bandwidth isn't as widely available as you might think. Not to mention that those that have it pay between 40-70 bucks per month.

As "convenient" as cloud gaming may seem, they would actually lose customers if they make that the ONLY choice.
jessupj  +   1318d ago
I agree. Until they get next to zero lag

Besides, it isn't happening anytime soon in Australia.

ISP stubbornly refuse to offer fast unlimited plans, we're always capped. So if I only have 50 gb for the month, which is a high end plan here, (sad, isn't it) I'm going to burn through that in a few days if I'm streaming all my games.

Just not going to happen for a loooong time.
mcgrottys  +   1319d ago
does MS really need ONlive? I mean they already have there azure program which is quite good from what I've heard. So I guess they could just improve on that. But then again Onlive may have a large amount of patents that may benefit MS.
Dlacy13g  +   1319d ago
I think the only reason MS buys Onlive at this point would be to eliminate a piece of competition, gobble up patents and bolster their online offerings. I have no doubt MS has the ability to figure streaming out... as you pointed to Azure, they also have their Zune streaming services already in place so they get the space. An Onlive purchase really I think would amount to positioning in the market and not much more.
Muffins1223  +   1319d ago
Whoa big surprise there
KonaBro  +   1319d ago | Helpful
Microsoft is in a pickle.
Obviously Microsoft is now left with few options after Sony swooped in and picked up Gaikai. Between Gaikai and OnLive, Gaikai is considered the better streaming service with better technology and the ability to introduce new games onto their demo service that even OnLive can't do. Also with their recent partnerships with Samsung for their SmartTVs and Nvidia for the GeForce Grid, being able to buy Gaikai for $380 million in the current inflation driven economy was a steal.

However for MS and OnLive, it's a little bit more complicated. OnLive is basically known for brand recognition when it comes to streaming services but it isn't as well implemented as Gaikai. Also, Sony was able to buy Gaikai for $380 million while current value estimations place OnLive around $1.8 billion. Does Microsoft want to put that kind of money into the inferior service and perhaps bolster it, or like someone said before try to use their own technical know-how to make their own cloud service? Either way, this was a huge grab for Sony and Microsoft (and the world) knows it.
Chromer  +   1319d ago
Bub up.
Very informative post.
mcgrottys  +   1319d ago
I don't know about Gaikai but the social networking aspect of Onlive is a big plus for MS and xbox live. What I am mainly referring to is the ability to see a live stream of your buddy's game almost instantly. However I do not know much of the other aspects so I may just be lying to myself. I need to do a bit more research on both before I come to a conclusion.

But the Geforce grid is a big plus for Gaikai.

I'm about to try out both so I can have a good comparison.
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Dlacy13g  +   1319d ago
@KonaBro... nicely stated. The only thing I would say that might be off is "MS is in a pickle". I say that only because from the outside we see them being in a pickle because well... we only see what we know. But the realities are we don't know what MS is truly R&Ding in this space so to say they are in a pickle could be true or flat out wrong. MS may be two steps ahead on this already so hard to say. I do think both Sony and MS wanted Onlive to be that brand to help push the idea of streaming gaming but neither felt it was going to succeed thus why Onlive remains where it is. It merely planted the seed for them.
LAZL0-Panaflex  +   1319d ago
Betcha if they buy onlive...Microsoft will raise price of gold membership.
FrigidDARKNESS  +   1319d ago
OnLivse is more popular to gamers and will be a big plus for MS.
DiRtY  +   1319d ago
I don't see the 400 million USD of Gaikai yet. I mean, servers etc are fine, but not 400 million USD like. What does Gaikai offer that Sony couldn't have built by themselves?
house  +   1319d ago
a built user base not to mention the special gpu nvidia built specifically for gaik streaming
Dlacy13g  +   1319d ago
Its not that Sony couldn't have built something similar...but its more like Sony saw how long it was going to take them to get to a comparable status and figured while initially expensive buying Gaikai in the long run would save them time and money. Buying Gaikai jump starts Sony in this area, especially if the integration of Gaikai is fairly seamless. Remember Gaikai isn't meant to be a stand alone service but rather its a back end service a company can license / purchase for their store fronts see Walmart Gamecenter:

Walmart uses Gaikai... and this is how I see PSN getting it implemented. Also... lets be honest, this now gives Sony a new revenue arm they can push out to other retailers and have them use Gaikai on their back end.
JellyJelly  +   1319d ago
"What does Gaikai offer that Sony couldn't have built by themselves?"

A proper UI?
Roccetarius  +   1319d ago
Stick that cloud up your ass, MS. It's not welcomed for at least 20 more years.
NoFanboyRequired  +   1319d ago
If that's the case of all companies going cloud base, i wont be supporting it. What happens when a game dev goes down and you bought the game thru the cloud? You wouldn't get support from the game, or even worse, not even be able to play the damn thing again.

Also, i don't feel like looking at crap quality games that look worse than current gen consoles do. All i know, is GaiKai is a hell of a lot better than OnLive when it comes to processing graphics.

5 to 10 more years may be good for cloud gaming, but right now? hell no.

I hope this isnt the fate of console gaming...
Roccetarius  +   1318d ago
I feel this is exactly where it's going, and i'm not going to support it either.

EA is already laughing in the background, because they can see the cash from the misinformed.

I can safely say that i won't bend over for them, not a chance in hell.
Jazz4108  +   1319d ago
This is a bold move for a strapped company. Its common knowledge that both gaikai and sony are in trouble with their finances. I don't think ms needs to rush into anything. Sony needed this as they are unable to make a network work very well see the ps3 and ms is a software genius. When it comes to cloud gaming I'm sure ms is ready and sony will be now as well but the infrastructure is 10 years off for the masses. If sony is looking for the long term its not a bad idea but this is not something they should try and push now or they will leave a lot of there users behind. I really think ms is in the drivers seat as they will do something when the time is right. Sony just put out milions and has acompany doing it now and thy will be forced to show there hand early and like I said the band width and speeds and caps make this a very niche platform right now.
LAZL0-Panaflex  +   1319d ago
Yeah software genious, where is this software you speak of. Halo?forza?..seriously??. too bad they're not hardware wizzes, lol.

when this streaming,tablet,smartphone,TV ,multiple device community takes off I'm sure epic wont keep gears on Xbox. Epic and EA are already making engines that work on every platform. Kinnectimals, mass effect, sonic...already on android market place...Its coming and it will be glooorious.
JBSleek  +   1318d ago
Are you misinformed about MS software prowess? One of the best if not the best software companies out. The world uses90% of their software.for computers.
Sarobi  +   1319d ago
Cloud gaming was becoming the topic of interest ever since Onlive arrived. Sony and Microsoft both know it would be a smart decision to jump on this topic sooner rather than later so they could try their best to perfect it now.
ALLWRONG  +   1319d ago
Took Sony long enough to jump on board, hope it's not too late.
jalen247  +   1319d ago
Microsoft better be cooking up their own cloud gaming experience or they will be left behind.

It is not enough to want to turn the Xbox into a cable box.

MS has been focusing too much on none gaming content....they shouldn't loose sight on gaming...
Dlacy13g  +   1319d ago
while not related to cloud gaming directly... this should put aside any doubts that MS isn't well aware and looking at cloud computing for the future:
jalen247  +   1319d ago
KMCROC54  +   1319d ago
Fine MS you have had plenty of time to react,now go out buy Onlive & keep at arm length till
your read to use it. Besides the Name would be cool name Xblaol.
Auron  +   1319d ago
next microsoft forms partnership with onlive
saimcheeda  +   1319d ago
Maybe im stupid
but can someone please explain to me what cloud gaming is?
KMCROC54  +   1319d ago
Do not know how accurate the article will be but it should help you somewhat.
#20.1 (Edited 1319d ago ) | Agree(0) | Disagree(0) | Report | Reply
ElitaStorm  +   1319d ago
i think that means you can play on clouds

Hufandpuf  +   1319d ago
That's exactly what it means
DigitalAnalog  +   1319d ago
Back then, the one disadvantage the PS3 had over the 360 was the online services. I really don't need to emphasize this further but it seems to me that this new move SONY trying to keep as many cards close to it's chest in order not to repeat the same mistake this gen. That way, they can build the system from the "ground up" as opposed to patching features to keep up with the competition.
IHateYouFanboys  +   1319d ago
why do people think that Microsoft need to buy a streaming game service?

Microsoft have been heavily investing in their own streaming services technology for years. Zune on the xbox 360 streams HD video content literally 2-3 seconds after you press the play button, its incredible to see.

it also dynamically changes the resolution to match your download speeds, something which will come in handy in regards to streaming games. it will keep controller response at its best, which is the SINGLE MOST IMPORTANT THING in streaming games.

Microsoft dont need to buy OnLive because theyve been making their own version of it in front of our noses the last few years. streaming games is no different to streaming videos, as thats all game streaming is - game play encoded as video streamed from the servers to your console. pressing pause/play/ff/rewind/etc on your remote while streaming a video via Zune is the same as pressing X/Y/A/B on your controller while streaming a game.

the groundwork is already there for Xbox live to have streaming games, they dont need to buy it from someone else.
BitbyDeath  +   1319d ago
VidZone on PS3 instantly streams video content as well but streaming videos vs games is still a different service.
honkayjeezus  +   1319d ago
By your notion, you can do cloud gaming from anything, then. That isn't how it works. You need to set up infrastructure, etc. Streaming game data isn't that hard, now getting it to work with your basis of thinking is beyond hard.

What you are explaining is simply streaming video sources for playback on a console. A thirty dollar DVD player can do that from Netflix. If it was that simple MS and Sony would already have a huge play on cloud based gaming. They don't.

Regardless, 90% of Americans don't even have the bandwidth to run your average HD game from cloud gaming. Sony is probably immediately looking at their library from PS and PS2.
KMCROC54  +   1319d ago
Just so they can own whatever patents Onlive have & move forward with their service but also have acquired all patents to fend off suits .
honkayjeezus  +   1319d ago
Cloud is a big area of investment... games? Not so much.
krazeecain  +   1319d ago
Not sure why there's so much hype for cloud gaming...
Are people really so obsessed with graphics that they're willing to deal with this massive input delay?

Think about it, you're sending the signal from your controller into a box > which processes it and sends a network signal > goes through your home router > goes through several network servers along the way > network signal is decoded by onLive/Gaikai/whatever server > server processes input and renders graphics > compresses graphics for streaming > graphics are streamed through several servers on the way to your house > through your router > your console/TV receives compressed data and decompresses it into a usable video signal > and FINALLY sends it to your TV.

HOW is this an improvement over controller > box > TV? Are graphics REALLY that important?!
BitbyDeath  +   1319d ago
I'm betting Sony has other uses for it like streaming Home to get rid of all the load times.

Or maybe just an option on the PS store to stream/download games, which could help for PS+ members trying out free games each month.
#24.1 (Edited 1319d ago ) | Agree(1) | Disagree(0) | Report | Reply
TheSaint  +   1319d ago
What if you're net craps out? Does that mean you can't game?

What if you don't have excellent internet? Would that mean you couldn't game??

We as consumers have the power to say no to cloud gaming, if no one buys the consoles they will HAVE to return to physical media. The main reason they are doing this is money, it's well stated they hate the second hand market.

If it goes pure cloud I'm (sadly) done with gaming.
MYSTERIO360  +   1319d ago
It just hope sony can deal with the latency issues cloud streaming providers suffer with.
Azurite  +   1319d ago
Cloud gaming is a plague, it's a potential risk for a Dark Ages of gaming.

If you feel itchy by DRM then Cloud gaming is the Black Death.
#27 (Edited 1319d ago ) | Agree(1) | Disagree(0) | Report | Reply
chukamachine  +   1318d ago
People talk of panic buys.

That's what MS did with kinect. They had no design input. They just bought the tech.

And then SPENT KAJILLIONS telling you it is needed.

Everyone knows it's crap. But people stil trying to convince it's good,lol.
gamer7804  +   1318d ago
MS is a software company, of course they bought the hardware. They write software. Kinect is good, but only when its used appropriately, its when they try to take core games as we know them and convert them for kinect that it fails. For media control, fitness, dance, and specialized games it works well.
chukamachine  +   1318d ago
Seriously are you selling it.

It's shite.

Smart tv guesture control works better then kinect. Fitness and dance can be done with a normal camera. It's worthless junk, But i'm guessing you'll buy the 720's version 2.0.

Fuk when will you sheeple wake up.
gamer7804  +   1318d ago
Cloud is important for saves , music movies etc. But its just not there yet for games in terms of latency, at least to go mainstream. This is a huge risk for sony, maybe at a time when they shouldn't be taking on many financial risks.
#29 (Edited 1318d ago ) | Agree(2) | Disagree(0) | Report | Reply
Garrison  +   1318d ago
I almost can't wait to see what implementations sony has in store for their brand new gaikai purchase. I think the next consoles could most likely be the last ones or who knows... maybe the ps3 is sony's Ps4.
Ever since I started playing onlive I knew that cloud gaming was the future. I love my consoles and pc but the best implementation of gaming services that I've seen can be done in cloud gaming. Sony will implement this in all of their tv's, computers and tablets and will try to also implement it on everyone else's. This will be big.
Sony could in fact use this service along with the ps3 to provide with substantial processing power,
more than enough for a next gen graphics.
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