Cloud nine: Sony buys Gaikai for $380 million

Monday, 2nd July 2012 08:15 GMT By Patrick Garratt

It’s been confirmed that Sony has bought Gaikai, David Perry’s cloud gaming service, for $380 million.

Gaikai – the silver lining

Gaikai is a cloud-gaming service founded by David Perry, Andrew Gault, Rui Pereira in 2008.

Distincly different from competitor OnLive in that it runs in a browser with no need for a download.

Has forged partnerships with EA, Ubisoft, Eurogamer, BestBuy and many more.

Wikipedia. Official site.

As a result of the deal, Sony’s users will be able “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,” said SCE boss Andrew House.

Said Gaikai founder David Perry: “Sony has built an incredible brand with PlayStation and has earned the respect of countless millions of gamers worldwide.

“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.”

The buy will be seen as a key indicator of how the console market will develop in the next generation. Both PlayStation 4 and the next Xbox are expected to release in 2013.

You heard it here first

The move has been heavily rumoured over the past months. News that Sony was close to a cloud acquisition was broken by VG247 before E3.

Perry backed away from the talk, but confirmed Gaikai and Sony had been in negotiations.

CNN Money reported in late June that Gaikai was actively seeking a buyer, and was aiming at a $500 million deal.

Gaikai’s profile has accelerated to the top-flight in recent weeks, with the firm’s system being shown running in Chrome at Google I/O 2012.



  1. Joe Musashi

    Shit just got real.


    #1 3 years ago
  2. Lacobus

    Cloud gaming is so exciting for the future. For someone who can barely replace components in his PC never mind building them from scratch, being able to play amazing games on my laptop or whatever is a great prospect.

    Though saying that, the idea of being able to play AAA console games on my Vita istead of nerfed versions is also exciting, and what I bought it for.

    #2 3 years ago
  3. Dannybuoy

    So the PS4 will be less powerful than the wii, cost £99 but will play bleeding edge games. Joking obviously but that would sell like hot pastries. Exciting times ahead for sure

    #3 3 years ago
  4. Lacobus

    Also I hope this cloud gaming doesn’t go crazy on prices. A flat subscription fee (maybe with layers depending on how much you play) would be best for me. Sorta like netflix. Having to fork out $60 a pop for a game that you’ll never own seems ridiculous to me.

    #4 3 years ago

    Ooo… Finally.

    How nice.

    …Oh wait. I just realised that I actually own a PS3.

    Where’s my Gaikai account? Might as well give it a try…

    #5 3 years ago
  6. kingofscotland

    ust have been hard not to bite back Pat at the amount of abuse in threads and comments about the lack of an E3 showing as predicted, obviously the deal wasn’t done yet and they didn’t want to shout about it before the ink dryed.

    At least Sony is learning;

    LA Noire *cough*
    Agent *cough*

    #6 3 years ago
  7. mojo

    this could be a game changer..

    but what happens to the samsung deal theyve announced just recently?

    #7 3 years ago


    Yeah, but the original story did explicitly say E3 announcement, and there blatantly was none.

    It’s kind of like Pachter, oh so wrongly, harping on about an imminent Wii HD for two years, then saying “I told you so!” when the WiiU is announced…

    #8 3 years ago
  9. kingofscotland

    I’m sure the Samsung deal still stands because that means more connected devices = greater income.

    Infact the Samsung Deal probably sealed the deal with Sony starting to pull away from the TV business this ensures that Gaikai still gets into many millions of living rooms.

    But more excited to see how the use it for the PlayStation Brand

    #9 3 years ago
  10. mojo

    WiiU != WiiHD

    so hes still wrong

    #10 3 years ago
  11. kingofscotland

    @8 Hardly a fair comparison – there was probably a plan to announce but never finalised deal in time – and E3 was less than a month ago so you’re Patcher ref is just as stupid as anyone who listens or believes anything Patcher says

    #11 3 years ago
  12. rrw

    @KazHiraiCEO: We bought Gaikai because gamers have kept asking for Cloud on their PS3 since E3 2005. Only just realised they meant a FFVII HD remake


    #12 3 years ago
  13. mojo

    12: looool!

    #13 3 years ago
  14. Patrick Garratt

    Ja. The E3 thing was annoying. I was told it was done and they were going to announce it in the press conference. Whatever. I’ll take “close” to “second” ;)

    #14 3 years ago
  15. Kaufer

    This is huge! I seriously have goose bumps.

    #15 3 years ago
  16. Erthazus

    Yeah, waste more money on something that you will never use.

    Maybe you can play Crysis on the PS Vita. LOL

    I don’t see a reason for that, except for maybe adding SOE library to that system and play it on the PS3 for example (Not happening).

    #16 3 years ago
  17. Colin Gallacher

    I was wondering when this would happen. Brilliant news.

    #17 3 years ago
  18. Ireland Michael

    Have fun with the whole cloud gaming thing for a week or so. The unavoidable input lag and constant blurriness of the graphics (even with the fastest connection) gets tiresome pretty fast.

    There’s no guarantee we’ll see this on any current hardware, but Onlive works even on my smartphone, so I can’t see any reason this couldn’t be released on the Vita.

    #18 3 years ago
  19. kingofscotland

    If it was a ‘partnership’ I’d see this service being used for instant demos and PS2 games streaming for Vita & PS3 game streaming for PS4 (combating backward compatibility) but you don’t pay $380 million for ‘nice to have’ features.

    They must be planning to really push it

    #19 3 years ago
  20. Erthazus

    I remember playing Mass Effect 2 and Dead Space 2 on GAIKAI and gosh what a piece of shit experience that was.

    I guess you can’t make a much worse experience than on GAIKAI i guess. I thought that 720p and crappy graphics on consoles were aleady bad, but this is a new level of stupidity. Server Lags, blurry images, latency issues and 20-25 FPS. Console gamers are going to be happy, but thank god for my GTX 580 and good PC overall that can provide smooth visuals without any lags with 2560×1660 resolution, AA, 50-100 frames per second and Direct X11.

    #20 3 years ago
  21. drewbles82

    this doesnt interest me yet. Maybe in ten years time when lag is something the new generation have never heard of. But till then its useless, ISPs in this country, most have some sort of limit, most homes now have more than one person online at the same time esp cuz of wifi phones.
    We have a 30mb connection and with my Dad downloading, Mum playing facebook games, sisters listening to music, and me on xbox, I still sometimes cant get even online.

    #21 3 years ago
  22. Ireland Michael

    @21 You’re never going to be able to eliminate lag completely, unless you can find a way to defy the laws of science.

    Faster connection will not create less lag either.

    #22 3 years ago
  23. daytripper

    Hmmm I’ll wait and see what they do with it before being positive or negative

    #23 3 years ago
  24. Christopher Jack

    I’ll reserve judgement of this acquisition until Sony reveals their plans. So much potential here, it looks like we’re going to see PlayStation Cloud on Samsung & LG TVs, wonder if this will mean actual PlayStation games playable right through the TV. There’s also more obvious things like PS2 BC, PS3 demos, perhaps even full PS3 games able to be streamed that we’re all ecstatic to hear of.

    I personally would enjoy the benefits of say buying a game through retail & having the choice of running through the disk, connecting it to an account & installing it to the console or running it through the cloud if say I went to a mates place. Fact is, Gaikai as it is doesn’t even work in Aus yet so its got a long way to go but is the inevitable future, I remember people hating the concept of YouTube, they’d rather download a trailer at the time.

    #24 3 years ago
  25. drewbles82

    I hate things going digital. Would always prefer to own a copy. The world is changing everyday, whose to say a company hosting all your games you’ve bought on cloud, doesn’t get hacked and you loose everything, or hell even an EMP.
    I know I could loose everything at home in a fire, flood etc but if I’m insured then. What if one of these storms on the East coast took out the power for one of these cloud companies.
    I hope there will always be a market for physical software.

    #25 3 years ago
  26. Moonwalker1982

    It could mean that the service will be built into the PS4, it could also mean there won’t be a PS4 at all, right?

    #26 3 years ago
  27. OlderGamer

    I think a lot of us knew this was going to happen. Not the specifics between Sony and Giakia so much, but the general sense that console platforms were going to cloud at some point.

    If Sony can hit the right price points, and offer a solid line up and service…they could run away with next gen.

    Should be exciting.

    #27 3 years ago
  28. ejams

    The first thing that popped in to my head was the remote play for Vita not being able to play any games right now. With this deal, maybe that’ll push things along. PS2 backwards compatibility would be really great too. I hope they merge this in with Playstation Plus or something, that would be a solid move to get more people on board. And I wouldn’t have to pay for another subscription :).

    #28 3 years ago
  29. Ireland Michael

    Why the hell would Sony spend $380 million just for a remote play feature when hackers in their bedrooms have already figured out how to do it themselves? All they’d have to do is reverse-engineer the hacks, or get one of the hackers to do it for them.

    #29 3 years ago
  30. Sadismek

    @29 I also think this was the worst way you could waste $380 millions. I think they’ll regret it in the future, unless they find miraculous new uses for Gaikai, worth the price they’ll most likely ask to use this.

    I remember seeing Red Dead Redemption being played on a hacked Vita. Sony could have made this so easier, instead of buying Gaikai… :(

    #30 3 years ago
  31. DSB

    I don’t think 400 million is a bad price, considering the potential. This can be used on most platforms, not just the PS3.

    Within 5 years, and probably even now, you could be able to order a game through your TV using a service like this.

    Sony fell way behind going into this generation because they weren’t ambitious enough when it came to online and services, and personally I don’t see any point in buying a Sony TV or Blu-Ray player when I can have a Samsung. This might be the edge they need.

    I think this could turn out to be a really smart move.

    #31 3 years ago
  32. Kabby

    Play a game on real a PlayStation. Save is saved to the cloud. Power off PlayStation.

    Pull out your Vita/Android Phone/Browser. Log into your PlayStation app. Resume the same game with the cloud save using Gaikai technology. Get bored; turn it off.

    Power on PlayStation. Resume game from your cloud save.

    It’s PlayStation gaming everywhere. Your PC can be a heap of shit. Your mobile can suck at 3D. People might actually buy a Vita, mainly because it has real controls. It can work on iOS, SmartTv’s, anything.

    #32 3 years ago
  33. Ireland Michael

    @30 If they made it fully remote play capable then people would have far less incentive to buy all the Vitafied rehashed of old and new games.

    #33 3 years ago
  34. DSB

    @32 Exactly.

    #34 3 years ago
  35. Sadismek

    @32 Sounds awesome if they’ll be able to actually do it.

    @33 That’s true. I just hope Sony will think out of the box, and think about the fragile future of Vita. If they would make it fully remote play capable, they’d sell Vita like hot cakes, and would push forward the sales of PS3/PS4 too.

    #35 3 years ago
  36. DrDamn

    I think Vita remote play is a side issue. However there is some merit as hackers in their bedroom worked out how to do it – but it was bad, plus they were just enabling a feature rather than writing it themselves. The tech behind Gaikai could be used to make it work better, with less perceptible lag.

    True – but they would be paying nice subscription fees instead. A steady and more predictable income stream.

    #36 3 years ago
  37. blackdreamhunk

    smart move by Sony my hats goes out to them really smart move

    #37 3 years ago

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