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Gaikai deal a “strategic move” to sell more TVs by Sony, feels Pachter

Monday, 2nd July 2012 17:49 GMT By Debabrata Nath

Sony’s acquisition of cloud gaming firm Gaikai has more to do with pushing Sony TVs than gaming hardware, according to Wedbush Morgan analyst Micheal Pachter.

Speaking to CVG, Pachter said that the purchase is more of a strategic move to keep its rivals away from using the service.

“I think that this is more related to Sony’s integrated strategy, and ties into their hopes of selling more televisions. I know that Gaikai was purchased by Sony Computer Entertainment, but essentially, they provide a solution to play games without a console, so they make a lot of sense if built into Sony TVs,” he said.

“This could be both a strategic move to sell more TVs and a pre-emptive move to keep others from using the service. It’s actually a very interesting deal, and the price is reasonable if it gives Sony an advantage over other television manufacturers while keeping the technology off the market so that others can’t eliminate the need for a console.”

He also said that it isn’t required for Microsoft to respond to this move since “they are making the [Xbox] console integral to the delivery of television content, so they have a different approach.”

It was earlier confirmed today that Sony has bought Gaikai for $380 million.

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15 Comments

  1. Erthazus

    Great strategic move when GaiKai is announced for LG and Samsung TV’s.

    Cool story Bro. Now i can play Dead Space 2 with 15-25 frames per second with lags, server issues and crappy resolution on my FULL HD TV. Awesome.

    #1 3 years ago
  2. rrw

    @1 yeah pretty sure thats not the reason why the buy gaikai. more like expand PS service to more customer

    #2 3 years ago
  3. DSB

    For once I agree with the Pacman. It goes way further than the PS3.

    Their TV sales haven’t been great, and I think they badly need a gimmick if they’re gonna outdo Samsung.

    #3 3 years ago
  4. Ireland Michael

    @3 What? Subscription gsming on your TV?

    #4 3 years ago
  5. Erthazus

    @3, That gimmick is announced for Samsung TV’s and Sony failed with 3D gimmick already.

    Nothing changes.

    #5 3 years ago
  6. Ireland Michael

    @5 Your complete inability to think outside of your one track graphical snobbery is fucking nauseating…

    #6 3 years ago
  7. Erthazus

    @6, Did i said something about “graphics” in my fifth post?

    #7 3 years ago
  8. Ireland Michael

    @7 It all comes down to visuals for you. If its not ZOMG cutting edge PC, it’s as good as dead to you.

    You know what… I’m not even going to bother.

    #8 3 years ago
  9. Deacon

    TV’s are set to incorporate a LOT of new features in the coming few years, so Sony will definitely use Gaikai as a selling point moving forward. Cue my incredibly slow clap for Pachter. Outstanding.

    #9 3 years ago
  10. DSB

    @4 Yeah. Why buy the cow when you can have the milk from your TV.

    Did someone beat them to it?

    @5 So because one bad gimmick fails, every other gimmick will too? I guess that’s one way to completely ignore the merits of those gimmicks.

    Ultimately it’s about value. People will buy a TV that offers more than the competition, provided that it represents obvious value, and not just a pain in the eye like 3D.

    Sony doesn’t have a great deal of options. They have to do something, and they’re obviously struggling to compete at the moment.

    #10 3 years ago
  11. ManuOtaku

    I think this is in order to compete with the rumored Apple TV than anything else, they arent aiming at Samsung here with this, because in my eyes thats the more used tv for “normal” consumers,i mean samsung, while this one and apple are for the more techny and edgy consumers IMHO

    #11 3 years ago
  12. Erthazus

    @8, “You know what… I’m not even going to bother.”

    and you should not. Because you clearly have no clue of what i was saying and it has nothing to do with visuals or cutting edge PC.

    @10, Yeah, you are right, but adding more gimmick won’t do a better job in the long run.
    Not to mention that gimmick like Gaikai will have other guys with cheaper alternatives.
    Sony likes to be pricey.

    #12 3 years ago
  13. manamana

    @12 you know who’s also rumored to bring a TV with net connection and is pricey as hell but designed like heaven, don’t you?!

    #13 3 years ago
  14. DSB

    @11 Judging from what I see in stores, Samsung and Sony are competing in the same price range, and that’s where Sony are losing money at the moment.

    The race is on to be the first and the best when it comes to providing services with your TV. It’s going to become a standard, and whether you’re interested in games or not, you don’t want fewer options with your product.

    People who can’t afford options will be going for something like a Toshiba or a Panasonic, but I’m not sure that’s a huge concern for Sony and Samsung.

    #14 3 years ago
  15. ZarraN

    This is huge … if Sony can use Gaikai technology to push PlayStation content to the cloud this could be the turning point for Sony.
    Just think about the posibilities, you could see Sony releasing games cross all of there devices. You could see every sold Sony tablet, phone, tv and vaio pc push the same entertaiment trough the cloud.
    Last years Sony has pushed there services Music Unlimited, Video Unlimited and PS Mobile cross most of there devices and also in some cases on to other hardware companies devices. If we would see Sony pushing out a Gaikai client on there own devices like PlayStation Vita would be huge but it would be even bigger deal to see the client cross all devices like Netflix.
    Why this make sense … no one else than Apple can take out huge margins on hardware and you could reach out to millions of customers and that way attract both customers and publishers to join the PlayStation family.

    My prediction is that we will see two versions of the PS4 one for less than 99$ and one for 399$ or 499$. The cheaper version would be basicly a Gaikai client which you could just download on supported divices just like Netflix.

    #15 3 years ago

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