Sony bought Gaikai for more than games - Analysts

Jesse Divnich and Michael Pachter weigh in on purchase of cloud-streaming service, say the acquisition gives electronics giant new ways to sell TVs, music, movies, and more.

Sony is forking over $380 million to purchase the cloud-streaming company Gaikai, and analysts are giving the deal a thumbs-up. Wedbush's Michael Pachter and Electronic Entertainment Design and Research's Jesse Divnich both expressed approval of the move to GameSpot.

Analysts' outlook on the Sony-Gaikai deal is more sunny than cloudy.

"This was an intelligent move on Sony’s end to future proof itself against the natural yet unpredictable evolution of technology," Divnich said, adding, "Don't think of this acquisition as a play on cloud gaming, but rather a play on cloud entertainment and Sony's Gaikai acquisition will position Sony to deliver music, movies, television, and gaming through a multitude of devices including consoles, mobile/tablets, set-top boxes, or just the television itself."

Pachter agreed that the deal had implications beyond gaming, saying, "I think that Sony is buying Gaikai for strategic reasons, as it will help with smart TV sales, and will allow them to integrate a cloud based solution into PlayStation 4 and PlayStation Network. I truly expect that they will benefit by eliminating one threat to their console business, and will benefit further from offering consumers greater choice."

Between the multiple uses Sony could have for Gaikai technology and the chance to cut off a possible competitor, Pachter said the price for the streaming company didn't seem overly expensive. As for when gamers will start to see the fruits of this union, Divnich said it will take a while for Sony to integrate the company's tech, so he doesn't expect to hear any news of Gaikai implementation in Sony products in the next six months.

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Discussion

28 comments
sonofMJJackson1
sonofMJJackson1

What wrong with buying hard copies it seems the network will ultimately colaspe if its just a cloud straming service

Apastron
Apastron

Yet more analysts stating the blindingly obvious.

 

Next you'll be telling me that they're going to try and make money from it.

Hvac0120
Hvac0120

You guys claiming "DRM" need to think a little more broadly about the topic. There is a worry that companies will make streaming the only way to play games in the future. That future is far away from now and it's clear that is not what is happening now.

 

I would be willing to use streaming for playing game demos. It would be much better than downloading the demo just to toss it out. Plus you get immediate access to the demo instead of waiting for the download.

 

Streaming has worked well for Netflix. I can see Sony using this to help with streaming videos.

 

Non-gaming software. Streaming makes it so that any software can be ran on any device. This has infinite possibilities but is limited by licensing and other regulations.

 

I don't want to play my games over a stream. Otherwise I'd use OnLive. I purchase hard copies of my most wanted games. But I can see some benefits for having streaming options for other activities on or off my game console.

megakick
megakick

DRM Movies, DRM Music DRM Video Games and DRM Life.

You will never be able to disconnect. Skynet is real the end is near.

 

Gamer_4_Fun
Gamer_4_Fun

Big investment to just use it in the PlayStation brand. With so power at your finger tips, possibilities are only restricted by your internet speed :(

hasancakir
hasancakir

A playsation 4 that includes both blu-ray and cloud powered gaming...it sounds great :) I think it is a great decision, sony really surprised me this time (cuz usually they make crappy decisions :) )

Ravenlore_basic
Ravenlore_basic

Well, lets see if Sony does not mess this up.  They tend to be protective of old tech and not use new tech.   Sony had an Ipod moment and they passed on it because it threatened their music business.  They could have ushered in a new era in many ways but they held on to OLD ways because it was more secure (so it seemed!!!) The old dies and the new rises in its place. 

 

I truly hope that Sony changes this thinking.  Becomes nimble again. looks to the future, and moves to change things up. Sony still has a chance to do great things but the big question is WILL they. 

leeko_link
leeko_link

So not only will Sony compete against Nintendo, Microsoft, and Apple but also Netflix, Steam, Hulu, and Onlive too?

TrueGB
TrueGB

They're right. After you buy a Sony TV, you can buy Sony movies, shows, games, and whatever else they've got available. All right there, front and center, from the multimedia menu. Sort of what MS is trying to do with Live.

As for their TVs...well, that's another topic.

Mozuckint
Mozuckint

Price your TV's more competitively Sony and people may actually start buying them.

syafiqjabar
syafiqjabar

 @leeko_link Sony also owns Columbia Pictures, one of the big movie studios and holds license to billion-dollar franchises like Spider-man.

Valtero
Valtero

 @leeko_link You're aware that Sony makes way more than just video games, right? TVs, computers, cameras, stereos, phones, and like a dozen record labels. I'm sure they can handle a few new competitors on top of the thousands they already compete with.

gatsbythepig
gatsbythepig

 @syafiqjabar Sorry but that is wrong.  Reread the articles, both of them.  Disney has owned Marvel for years now.  Disney allows Sony to make the Spider-Man movies.  Sony uses the Columbia logo, which is why Columbia appears at the beginning of the movie. 

 

Use some links or refer to information or there is no use in continuing the conversation.

syafiqjabar
syafiqjabar

 @abelgrahf Marvel and Disney still owns them but they cannot make movies out of them because Sony holds those rights.

syafiqjabar
syafiqjabar

 @gatsbythepig That article is a year old. With the recent movie, there's no question of "brand-damaging" anymore. Sony is holding on to the rights to make Spider-man movies a lot longer. They already gave up the rights to make Spidey cartoons and gave it back to Marvel (which is why the Sony-made Spectacular Spider-man is cancelled and Disney/Marvel now makes an Ultimate Spider-man cartoon).

gatsbythepig
gatsbythepig

@abelgrahf

"The next blockbuster film licensed from Marvel Studios was Spider-Man by Columbia Pictures, directed by Sam Raimi and starring Tobey Maguire as Spider-Man."

 

http://en.wikipedia.org/wiki/Marvel_Studios

 

 "Disney also owns Spider-Man, a character who is lately recognizable for all the wrong reasons, and whose value may be on the decline."

 

http://www.washingtontimes.com/news/2011/apr/17/unfriendly-neighborhood-spider-brand/

 

Sony's production company is licensed to make the movie from Disney. Disney owns it, Columbia's label appears and Sony is permitted to use the Spider-Man icon.

 

abelgrahf
abelgrahf

 @gatsbythepig Columbia pictures is sony which that articles says still owns spiderman film rights

abelgrahf
abelgrahf

 @gatsbythepig Spiderman and Ghost Rider are still owned by Sony Disney just bought the parts of the Marvel universe that other studios didn't already have the rights to