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Analysts: Sony's Gaikai Purchase Is All About The Future

Sony has acquired Gaikai for $380 million, and quite a few analysts say that it was a solid idea. One even called it a "genius move."

According to, which posted up several analyst responses to the purchase, industry insiders are applauding Sony. Here's what EEDAR boss Jesse Divnich had to say:

"Without a doubt this was a genius move by Sony. Although they've been doing quite well in video games, as a company Sony has been struggling. What the acquisition of Gaikai really does is it helps to future proof Sony, because no matter where the industry transitions, whether we're getting entertainment through Wi-Fi, through a Blu-ray player or discs at the store, it doesn't matter because no matter where technology goes over the next 10 years, they will be able to utilize Gaikai and its technologies to deliver entertainment straight to the consumer."

It really is all about the future, as other analysts went on to say. You shouldn't expect the Gaikai purchase to have a tremendous impact on the current console; rather, it'll likely be reserved for the PS4, which will undoubtedly focus more on digital and streaming entertainment. As IDC Research Manager Lewis Ward said:

"I think this is ultimately more about the PS4 platform than PS3, although I wouldn't be surprised to see some streaming game demos at least surface in Home and in the PS Store within the next year. I think Sony will hold off on the streaming of AAA games until the PS4 arrives and they can offer some interesting subscription levels.

Many are expecting an all-digital future, and that includes console manufacturers and game publishers. That being said, you shouldn't expect regular retail products to disappear any time soon, cloud or no cloud.

Tags: sony, gaikai, cloud gaming, gaikai cloud

7/3/2012 8:30:59 PM John Shepard

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Legacy Comment System (11 posts)

Tuesday, July 03, 2012 @ 9:41:23 PM

I read somewhere that one possible thing Sony may be able to do with Gaikai is that they could deliver PS4 games down to the customer's PS3, without the customer even needing to buy a PS4. All the hard work would be done on Sony's side.

I don't know if that's true or not but if it's possible then maybe comments made earlier in the year (by some guy who's name I can't think of) about one of the big console players skipping the next generation of consoles, may actually hold some weight. If Gaikai can stream PS4 games to PS3, why bother building a new console that may lose money at the start of it's life?!

Of course it's all speculation, I'm sure there will be a PS4 console.

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Tuesday, July 03, 2012 @ 10:34:37 PM

I am 99% sure that Sony will NOT skip the next generation! Cloud service in its current state cannot provide the level of quality that physical media can. If ever. Lets revisit this question in a few more years?

Last edited by FatherSun on 7/3/2012 10:41:10 PM

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Wednesday, July 04, 2012 @ 1:47:21 AM

It's a very interesting point about being able to play ps4 games on the ps3. I doubt they'll do it though, simply cause they need to push the hardware. But theoretically, yes, it could be done.

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Tuesday, July 03, 2012 @ 10:55:34 PM

Genius will only be realized by proper implementation. If Sony leverages the technology then big things are in store for the Playstation Brand and Sony as a whole. I am sure they will expand it in every possible way but there is always the possibility that they will not. Only time will tell. Take your time Sony!!!

As far as the physical versus digital argument is concerned current infrastructure dictates what can be done at this time but it will not eliminate physical media. Maybe someday it will match it but to replace it entirely? That's just crazy talk! Seriously though, someone on another site stated "So What if most of the world is NOT set up with sufficient bandwidth or ready for advancements. It does not mean that those who have the capability should be held back." I agree, that progress must be made. But this also points to the fact that physical will not disappear anytime soon. There are some places out there that are only now getting a PS2. Possibly a PS1. Is it really a small world after all?

I think this was a good business move on Sony's part. It definitely opened some eyes. I am sure this was in the works before E3 but what would/could Sony have announced? A partnership? An acquisition? Without at least some type of demonstration then it was wise not to announce at E3. This allows them time to do what must be done with the tech. Interesting times for the Gaming Industry ahead. Not only gaming, what is to keep Sony from utilizing the cloud for all of their content? Sony has their hands in almost all media. Music, Movies, Television and Gaming. Is this the beginning of the synergy of all of Sony's assets? Exciting times!

Last edited by FatherSun on 7/3/2012 11:09:28 PM

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Tuesday, July 03, 2012 @ 11:04:30 PM

I think one of the first aims of this technology will be to provide game rentals through the streaming service. There will be no bothersome download period. It can also shut off after the rental period is over and easily allow gamers to pivot over and buy the game they just played digitally. Demos are nice but usually a terrible indicator of how the game will be.

Last edited by WorldEndsWithMe on 7/3/2012 11:05:28 PM

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Wednesday, July 04, 2012 @ 1:52:44 AM

Yup. Streaming services really should be thought of as a rental service.

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Wednesday, July 04, 2012 @ 7:28:55 PM

If you're streaming, then there wouldn't be any need to download then, right?

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Wednesday, July 04, 2012 @ 6:13:48 AM

its funny how no one has mentioned what this could mean for everything BUT playstation!
i wouldent be surprised if $ony use this more for their TV and mobile devices than they do for the playstation brand.
however im still hopeful that they will develop some sort of service which lets you stream ps1 and ps2 games to your ps3.
and every ps1 and ps2 game, not only the lacklustre selection they have already on the store!

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Wednesday, July 04, 2012 @ 7:27:40 PM

Streaming is nice, but I really want a way to play my old PS1/PS2/PS3 games without having to pay for it again, a.k.a backward compatibility. With this news, I have this uneasy feeling that backward compatibility for the PS4 will be in the form of "paid" streaming. I hope they at least have a way for us to give us proof that we do have the copies if we're to get the stream version for free. We also have to keep in mind that our internet connection must be smooth.

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Thursday, July 05, 2012 @ 9:58:26 AM

dont hold your breath.
im happy for a streaming service.
even if we have to pay for the games again, at least we have the option!

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Wednesday, July 04, 2012 @ 9:46:09 AM

I see this as only one of many ways SOny will be able to broaden the exposure of their family of software offerings. I don't see it as a replacement to anything us core gamers have, just an appendage reaching to a broader range of consumer.

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