Gaikai pre-empted this recently with the news that they expected to be bought.
Sony have this morning confirmed that last week they “entered into a definitive agreement” to acquire Gaikai Inc. for approximately USD 380 million.
“Through the acquisition,” says the statement, “SCE will establish a new cloud service, ensuring that it continues to provide users with truly innovative and immersive interactive entertainment experiences.”
“By combining Gaikai’s resources including its technological strength and engineering talent with SCE’s extensive game platform knowledge and experience, SCE will provide users with unparalleled cloud entertainment experiences,” said Andrew House, President and Group CEO of Sony Computer Entertainment Inc.
“SCE 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.”
It’s interesting that House is stating that games will definitely feature, something we thought about a little while back when we first heard the rumours about Gaikai or OnLive. Basically, we said that a PS4 doesn’t technically need to exist – next-gen can all be streamed over the cloud to a PS3 or a Vita.
Read our earlier thoughts and see what you think, and whilst we said back just before E3 that such a deal would mainly be for PS1 and PS2 games, there’s little to suggest that SCE won’t really want to push this tech.
“If you have a PlayStation 3 or one of our speculative PlayStation Lite consoles you won’t need to buy a PS4,” we said back in May. “PS4 games will be available to you on your PS3 via streaming.”
“Sony can make hardware (and price it accordingly – i.e. bloody expensive) to those who want it, everyone else can switch on their PlayStation 3 and skip the expense and hassle of upgrading. The bank of PS4s at Sony will power the games, and stream them to your PS3 just like Gaikai does.”
“Sony might even miss the PlayStation 4 hardware phase altogether,” we continued, “that seems to be what Nanea Reeves was suggesting back in January. Skipping the costly first half of its life, when they’re selling at a loss and allowing half their users to stream on cheap hardware would be a huge money-spinner for them early on in the new console’s life.”
All that discussion suddenly seems a lot more real.
“SCE has built an incredible brand with PlayStation and has earned the respect of countless millions of gamers worldwide,” said David Perry, CEO of Gaikai Inc.
“We’re honored to be able to help SCE 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 press release says that SCE 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.”
Whilst the transaction is subject to certain regulatory approvals and customary closing conditions, this is hugely exciting, especially after an E3 that was desperately in need of some new technology from Sony and Microsoft.

BalramRules
This is undoubtedly fantastic flabbergasting news for PlayStation Gamers, though I’m rather pessimistic about it coming to the PS3 (since it unfortunately can’t even do Cross-Game Chat), I’m very Very optimistic about it coming to PS4, and perhaps even Vita (you’ve seen the ‘OnLive’ Platform, it’s a tiny little machine, I’m sure the Vita could be capable of this performance, I think Sony’s doing it well. ;)
Nickboss1
What makes you think ps3 could’nt do this?
BalramRules
I’m don’t know too much about PS3 so I’m just giving some my guesses, it probably could, but firstly I think Sony’s more prepping up for the next generation of PlayStation (PS3, yepee!) and on top of that, if the PS3 has limitations towards it doing Cross-Game Chatting, some of the technical issues may be similar with that of Online-Game Streaming, then again I could be wrong, this is just my guess.
If it does come to PS3, I’ll totally be amazed. ;)
(And in any case, I hope it does).
Nickboss1
Yeah i hope so too.
Ossy
I don’t particularly like the sound of streaming my games however I used to feel the same about digital downloads. I know buy almost every game digitally, Steam & PS Store for my Vita games. I’m not sure what to think about PS4 after PS3 promising 1080p games at 60fps and a lot of 3rd party games are 720p (or worse) at lower then 30fps. In the last year I’ve stopped buying games for my PS3 except for 1st party titles as games on the PC are cheaper and in most cases better (higher resolutions, texture quality, frame rates etc.)
Platform holders need to bridge the gap between consoles and PC’s which is easier said then done as Nvidia release new GPU’s so often.
Crocadillian
With streaming, you lose the ability to play games offline, and I don’t trust ANY service provider with this kind of license. The impracticalities with the tech and issues with publishers and manufacturers, especially Sony, handling such a license, make streaming services a dangerous thing to invest in IMO. This is too unreliable to ever be considered the future of console or video games.
Nickboss1
As much as I love Sony I have to agree with you.
FRUITofDOOM
Sod the quality of your connection determining the quality of service – how about a connection being needed in the first place or you simply cannot play the games.
Always been against Cloud based gaming as it takes a hobby I’ve been into for 20 years and makes it totally reliant on being connected to the internet.
When I buy a game, be it digital or retail – I want it stored in MY house. Not pay to play from some server miles away that could shut off at anytime with no warning. I also DEMAND the best on offer – streaming will not offer the best “consistent” experience.
Bad move in my opinion as it takes away “ownership” which IS a MASSIVE part of the hobby we know as gaming!
amiga_dude
Why are people thinking Onlive will be brought up by Microsoft?
What about Apple, Google, Amazon, Yahoo, Warner Brothers, AT&T, Vodafone, BSkyB, Nintendo?
FRUITofDOOM
If this is the way forwards (which I pray it isn’t) Microsoft would more than likely throw their own weight behind a similar service bolted on too / made part of Xbox LIVE
amiga_dude
I should of added “Facebook” to that list aswell.
flatspikes
So delivery of demos and the option off streaming a game will be a reality. Perhaps the option to download or/and stream could be part of the new deal. Running out of disc space, just stream it, buy once then download or stream and be able to choose forever more?
Options are always good.
ThatMattKid
Stupid question but I just can’t get my head around how a PS3 could play PS4 games? The way im imagining it is like an old TV trying to play HD channels, it just wouldn’t look right surely.
Alex C
The PS4 game would be running on a top end PC, or – indeed – a PS4. The audio and video are then streamed to your PS3, and your PS3 sends back your controller inputs.
It’s unlikely, but it’s a fun discussion.
cc_star
There’s lies the problem in a hardware company owning a service.
Do they gimp the service to sell newer hardware, or do they let the service be everything it can be and have no need to sell new hardware.
I smell compromises.
ThatMattKid
Cheers alex, I can understand why so many people are quite dubious about it now. But when HD was released most people didn’t even own HD ready TV’s, but that catalyzed companies into creating affordable, yet effective products. Hopefully the likes of virgin and BT will see this and get their arse into gear and begin sorting out the mess which we call the internet here in the UK. In time it can only be viewed as a good thing for everyone.
Forrest_01
Not if it switches to wholly streaming, no.
That wouldn’t be a good thing for me. At all.
GTRsannin
Just no if PS4 is stream only i’m going to have to pass if they have to move to digital i’d rather go with downloads at least with that you can get something with this you can’t get anything and it’s sad too since i’m a huge playstation fan but with that said i highly doubt that PS4 wouldn’t have discs
BrendanCalls
For those complaining about not having the internet speeds, you need to remember that whatever internet speeds you have here in the UK that they are at least 10x, if not 50x faster in developed parts of Asia and that is a much more lucrative market for most companies than UK ever will be.
I’m not saying that Sony won’t consider the Uk as its still a big market, but we are not certainly not going to be their priority in terms of delivering a streaming service capable of handling a “Killzone 3” or an Arkham City
djhsecondnature
But equally internet speeds in other countries are far worse.
If you create a console that focuses on just the highest of Internet speeds you’re killing the majority of your market.
cc_star
Not a problem for Sony, it’s why they only release in certain territories, like why the PS2 only came out in Brazil in very late 2009 when the rest of us were playing Uncharted2.