"By combining Gaikai's resources including its technological strength and engineering talent with Sony's extensive game platform knowledge and experience, Sony will provide users with unparalleled cloud entertainment experiences," said Andrew House, President and Group CEO of Sony Computer Entertainment. "Sony will deliver a world-class cloud-streaming service that allows users to instantly enjoy a broad array of content ranging from immersive core games with rich graphics to casual content anytime, anywhere on a variety of internet-connected devices."
"Sony has built an incredible brand with PlayStation and has earned the respect of countless millions of gamers worldwide," said David Perry, CEO of Gaikai. "We're honored to be able to help Sony rapidly harness the power of the interactive cloud and to continue to grow their ecosystem, to empower developers with new capabilities, to dramatically improve the reach of exciting content and to bring breathtaking new experiences to users worldwide."
Established in 2008 and headquartered in Aliso Viejo, California, Gaikai has developed the highest quality, fastest interactive cloud-streaming platform in the world that enables the streaming of quality games to a wide variety of devices via the internet. With this acquisition, Sony 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.
Just last week Perry was asked about a possible acquisition and he replied, “We’re just trying to evangelize this concept of cloud gaming and in doing so we expect someone will pop up and want to participate or partner or own the company. That’s why we keep as much momentum as we can. It’s a case of keep executing and at some point, somewhere, cloud gaming will become interesting to someone. Media companies are realizing the importance of games, and software companies, are realizing that it’s just as easy to stream footage off power points as well as games. Gaikai’s network is the fastest in world if you want to have fast response rates, we’re it.”
Gaikai has recently inked deals with major consumer electronics brands like Samsung and LG to provide cloud gaming services for their Smart TVs and other devices. Perry even said Samsung will directly compete with Sony, Microsoft and Nintendo as a major games provider. Now Sony will own a piece of that business as it helps rivals in the electronics space stream games via Gaikai directly to TVs, tablets and other devices without the need of a console.
The transaction is subject to certain regulatory approvals and customary closing conditions. Sony will continue to aggressively expand a new world of entertainment through the introduction of innovative technologies and the delivery of amazing experiences.
The deal is rumored to include the streaming of first- and third-party PlayStation, PlayStation 2 and PlayStation 3 games through the cloud, essentially making the PS3 backwards-compatible again (something the newer model eliminated from the equation).
