Why Gaikai Is Paramount to PlayStation's Future

Push Square: "Sony’s not enjoyed much financial success lately. The company has been bleeding money for years, primarily due to its diminished relevance in the consumer electronics sector. Where the Japanese giant was once considered the market leader, it’s been outmuscled by more versatile competitors such as Apple, Samsung, and even LG. The task has fallen upon former PlayStation president Kaz Hirai to turn the organisation’s fortunes around, and there are signs that things are gradually starting to improve, even if there is still a long road ahead."

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ArmGunar1834d ago

At least, Sony will have always a exit door with Gaikai if the market of home consoles die.

Maybe the future of video-game is this kind of online gaming or maybe not but if it happens, Sony will be ready :)

Knight_Crawler1834d ago

This is what people who are predicting that Sony will announce the PS4 on the 20th fail to understand - Gaikai is very VITAL to the future of Sony and it cannot fail or break even, the purchase has to bring them back a huge payback which is why I expect Sony to announce something Gaikai related instead of PS4 on the 20th.

Some of you may say why not both... because a PS4 announcement will over shadow anything Gaikai related.

jukins1834d ago

well what you fail to realize is that for Gaikai to be successful, asap, it must be tied in with the playstation 4 and what better way than a playstation 4 reveal. It'd be like apple showing off the itunes store with no device to use it on.

rainslacker1834d ago

With the release of every PS console, Sony has pushed an emerging technology. PS1 had CD, PS2 had DVD, and PS3 had Blu-Ray.

Since Blu-Ray is probably going to be the accepted standard for a while, mostly because it is adaptable, there was just no other technology other than streaming services. It is doubly beneficial to Sony as well, since they have quite a wide array of media to push, from Movies, TV, and Music, all within their very own catalog, not to mention partner companies that will want to take part.

Because of that, PS4 is in the position to push the Gaikai service into the market and help make it gain mainstream acceptance, much like the release of their last 3 consoles have done.

The only downside this time around is that streaming services are already plentiful, and generally adopted by quite a few people. What's going to be most interesting is how Sony will differentiate itself from all the others, and I'm sure games will play a big part in that equation.

aCasualGamer1834d ago (Edited 1834d ago )

Paramount Pictures

I dunno... don't ask me why.

dcbronco1834d ago

Gaikai's importance is limited. Unless they expand the service for other places it won't be a huge factor. It has been around and hasn't made a huge impact. Though sometimes a larger company can get into areas a smaller one can't. If they did make Gaikai a streaming service that did games as well as movies and music all for one fee that might be able to make it bigger than it was. But then you might be talking about a $20-25 a month service. Make it an all encompassing PSN Plus.

The downside is that there has been talk for some time about charging streaming companies a fee. IPs are complaining about the amount of bandwidth used. If that were to happen it might put Sony in a bad position. It would be raise prices or eat the losses.

Just_The_Truth1834d ago (Edited 1834d ago )

@Dcbronco just before Sony bought them out the made deals with a ton of companies last year. You can play full games from Facebook, your tv, an advertisement anything with Internet. The best thing about that is you don't need extra hardware to get the same quality. Plus the companies only pay for what they need. They will defiantly make their money back in one way or another, at lot of thought goes into spending 380 million. Btw imagine being able to stream ps1-3 games to your vita w/o having to download a thing.

dcbronco1833d ago (Edited 1833d ago )


Gaikai was a standalone company that may not have been making money as it stood. I'm not sure why so many believe Sony can take on those cost and offer it for free. This has to be just another way of getting people to pay for online gaming. They could make it free to console owners and charge for anything else, but it has to be paid for. I'm not sure why Sony can make it so much more profitable than Gaikai unless they combine music and movies with it and charge. Otherwise it will just be something else costing them money and not producing any.

But when it comes to IPs charging for bandwidth, if that happens there is no way for Sony to get around charging users. PSN for free is a weight around their neck. Gaikai would be a weight around their neck also unless they charge. And that means charging for BC. I don't think they will do that. So it must be to replace PSN+ and be the start of getting people to pay for online.

Or sell it to other companies as a service. Like movies in a doctors office or games at an airport. And companies make billion dollar deals and haven't thought it through or have it not live up to there expectations. Or the market just changes. MS took a charge of several billion because they bought a company that wasn't what they thought it was.

+ Show (3) more repliesLast reply 1833d ago
Divine1834d ago

Gaikai will surely change the gaming world, and i'm glad sony has made this investment They know what they're doing and won't fail to deliver the ultimate experience for us all.

Ju1834d ago

OnLive didn't and neither will Gaikai.

fourOeightshark1834d ago

OnLive wasn't bought by a freakin multinational conglomerate corporation.

profgerbik1834d ago

Did you even use Gaikai? because you would know Gaikai and OnLive are totally two different things.

One sucks badly, one doesn't. Not hard to figure out which one, because Sony didn't spend over billions on OnLive..

miyamoto1834d ago

OnLive lacked focus, and was on the wrong ecosystem
Gaikai is laser focused on the right ecosystem, the core console gaming community

Ju1833d ago (Edited 1833d ago )

Sony didn't spend one Billion on Gaikai, either. Just saying. And how ever different those two things are, you can't make a profit with streaming solutions (as they are right now). No matter if Sony or not. Gaikai != Playstation. FYI. An add on can't be the product. BTW: please send me a link where I can either try Gaikai or buy it. Because AFAIS you can't.

+ Show (1) more replyLast reply 1833d ago
a_bro1834d ago

the purchase of Gaikai is more than just for PS4. it goes beyond that. the Vita(obviously), Bravia, Blu-Ray players are included in the mix.

Gaikai was running on samsung tvs before Gaikai got bought out by sony.

Gaikai isnt just for the playstation line, its for every peace of hardware that sony makes.

fourOeightshark1834d ago (Edited 1834d ago )

That's why i'm buying the Xperia Z phone and Xperia Tablet Z.

JBSleek1834d ago

You'll be lucky if the Xperia Z is on more than one US carrier.

JoGam1834d ago

@ JBSleek...if not at launch then it will in the future.

dcbronco1834d ago


It might work out great for Sony. But they need to get deals in place with the IPs. If the IPs start charging for heavy users, Gaikai might turn into a burden for Sony.

Ps_alm3k1834d ago

Well it will be the netflix for games.

juandren1834d ago (Edited 1834d ago )

Much, much more. It will be the Netflix for everything. It literally has no limit. If Sony plays this right, they could be the #1 brand for everything in a home, in every home in the world. I imagine in 10 years even alarm systems and security cameras will be linked to Gaikai. Arm your alarm through your phone, monitor your home's CCTV cameras, update your PS5 from your phone. Maybe even remote desktops from their VAIO laptops. If Sony market sthis right, they could possibly take over electronics in most homes in the world

JBSleek1834d ago

You serious though? You got to be kidding me lol.

juandren1834d ago (Edited 1834d ago )

If you have a reason to think it won't work, please share. Sony's other departments are suffering extreme losses. They won't stop with just gaming. Sony Music, Sony Pictures, BRAVIA, VAIO, Sony Mobile, Blu-Ray players. Why would they exclude all those out of a $380 million purchase?

Megaton1834d ago (Edited 1834d ago )

It's silly to think cloud gaming will become a mainstream thing any time in the next few years. Most of the world's internet still isn't in a position to facilitate that. Whether it be slow speeds or data caps, ISPs are ultimately in control of whether or not cloud gaming becomes viable.

rainslacker1834d ago (Edited 1834d ago )

It will gain acceptance, however going mainstream can take quite a while. It's not to say it won't happen, but because of the things you mention it will have a long uphill battle to reach that goal. Somethings go mainstream really quick, like smartphones, other things take a while, like say video games which only went mainstream about 7 years or so ago...mostly due to smartphones and the Wii.

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