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OnLive subscription service will draw customers to Gaikai, says Perry

Tuesday, 16th March 2010 15:53 GMT By Stephany Nunneley

gaikai

David Perry has said that OnLive’s pricing model will cause gamers to flock to his free cloud service, Gaikai.

Speaking with GI.biz at GDC, Perry said that the pricing structure for Onlive is a “shot in the arm” for Gaikai, adding that he would be happy to stream the service on to consoles as well.

“It’s very different to OnLive. We’re not trying to replace the consoles,” he revealed. [OnLive] have done an amazing job with the user interface [but] the cost per data center to do all of that streaming is very expensive. That’s why they have a subscription. Would you pay $15 a month for it? You’re paying for the games on top of the service. You’re paying $15 only to have the opportunity to buy the games. $15 gives you no games. If you decide, ‘I don’t want to keep paying that subscription’, you’ve just lost access to your games bought at full price.

“We were just as surprised as everyone else when we heard the final business model. That’s why it’s a shot in the arm to us because now we’re just perfectly positioned. You can play Call of Duty over there for $15 or you can come here and try it for nothing. When you buy it from us, you own it, for the rest of your life. When you buy it from over there you have to keep paying a subscription to keep access to it.

“In a weird way I actually want them to be successful because it’s a good thing if streaming gets a really good reputation, so I actually want them to succeed. It’s healthy competition but we have very different strategies and it’s all going to shake itself out over the next 18 months.

“In 18 months let’s sit down and see what happened. It’s going to be interesting.”

Perry also said that Gaikai could stream onto “anything with a screen, internet connection and form of input, including internet-connected TVs”, according to GI, and customers reading gaming websites from these devices can automatically hit a link and try the game out.

“Instead of us marketing and trying to drive all the customers to a certain URL – like OnLive for example, they have to buy every player and convince them to come to a certain place on the internet,” he said. “It’s better when they’re reading an article that – bam – it says, ‘do you want to try it now?’ The publisher would like that. The game might not even be ready for release so you’d be looking at an early preview. We can run it on our servers, they can experience it on your site, and they can make a pre-order to EA.

“So you win, you get a demo you could never have had before. The gamer gets to play something they could never have played before, and EA gets a pre-order a year in advance. Life is good for everyone.”

Purchases could also be made via online retailers, like Amazon, as well as directly through publishers. Users could also try out codeless Betas and applications like PhotoShop to stop potential hacking and pirating.

Also, players will also be able to use Facebook, YouTube, and Twitter which will be integrated into the service, so that you when you post a tweet or update, friends will be able to “one click” into what you are doing and join in.

“Say I discovered Starcraft’s Beta first out of all of my friends, I can tweet it out and say ‘I’m in Starcraft right now’ and, one click, and they’re all in the game too with me,” said Perry. “That’s unbelievably compatible with the marketing needs of the publisher. And you’re super cool because you’ve got all your friends into the Beta without them having to beg for keys, registering or anything.

“If a publisher works with us, we’ll actually teleport them to exactly where you stand because we can give where you are in with the link. You’ll see all these people appearing around you who are your friends. That’s what we’d like to get to – it’s longer term, publishers need to buy into it, but we think that would be awesome.”

Gaikai is expected to launch sometime during Q1 after Beta testing is complete.

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14 Comments

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  1. JonFE

    Is that pricing model actually correct? I thought that it was announced that no subscription fees are required for OnLive. So does your article below:

    http://www.vg247.com/2010/03/13/onlive-game-portal-announced-wont-require-subscription-fees/

    #1 4 years ago
  2. mington

    Gaikai is a silly name and is asking for trouble

    may i be the first person on the internets to call it GAYkai

    #2 4 years ago
  3. mington

    http://www.gaikai.com/beta/

    #3 4 years ago
  4. Gekidami

    Gaiaki sounds better then Gaikai.

    #4 4 years ago
  5. Hunam

    Thins I don’t care about at all.

    Onlive, Gaikai.

    #5 4 years ago
  6. mington

    they blatantly should just call it cloud or storm or wave or zoom or shazam

    #6 4 years ago
  7. Eregol

    Blimey, I ask for Gaikai news and I get it.

    Nothing of any merit though.

    C’mon Perry show us the proof.

    #7 4 years ago
  8. mington

    Perry is also a silly name

    he blatantly should be called Jeff or Dave or Stu or Ken or shazam

    #8 4 years ago
  9. SunKing

    I’m really looking forward to Gaikai. Cheers for the beta signup URL, mington.

    #9 4 years ago
  10. Stephany Nunneley

    @JonFE – The pricing model is correct. The link you have posted there is a “trial” more than anything, where as if you want full service you have to pay for it.

    #10 4 years ago
  11. endgame

    hmmm. a trial u say? then i guess gaikai is the better option. or, will be. :) sad it’s not here yet. i would definitely use any of these services if they any of them would be available.

    #11 4 years ago
  12. zaphod

    So Gakai is just a trial service. And looks to me like OnLive = more buck for less bang. At $15/month, you’re buying a new console every 18 months, plus you still have to buy the games, and you can’t sell the games used to get any of that money back. On top of that you can only play at 720p30, you will have some latency across the Internet, and you will be subject to various Internet issues (e.g. outages, bandwidth caps, etc.). So I’m paying more for the console and the games, and I’m getting less resolution, more latency, less reliability, etc. I prefer Spawn Labs’ approach. The have a box you can hook up to your console or PC gaming rig. Lets you play around your house or across the Internet, alone or co-op with friends, record video clips, no subscription fees. Have your cake and eat it too…

    #12 4 years ago
  13. Filofax

    I think in 18 months time both OnLive and Gaikai will have been forgotten.

    #13 4 years ago
  14. JonFE

    @Stephany:
    Thanks for clearing that up; I stand corrected.

    #14 4 years ago