Sony's video gaming unit has acquired a California-based cloud gaming platform company for $380 million, a tech site reported Monday.
The Next Web said Sony Computer Entertainment bought Gaikai, which had been on the block and could have been sold for as much as $500 million.
"Established in 2008 and headquartered in Aliso Viejo, California, Gaikai enables the streaming of games to a wide variety of devices – including mobile, tablets, and televisions – via the Internet. No downloads and no additional hardware required," The Next Web noted.
Gaikai’s main rival is cloud gaming firm OnLive, which is backed by HTC.
The Next Web noted Gaikai had only raised $45 million in funding to date, and has backing from Benchmark Capital, TriplePoint Capital, Rustic Canyon Partners, Limelight Networks and Intel Capital.
It quoted SCE as saying the acquisition will establish a new cloud-based interactive entertainment service.
The Sony unit handles the research and development, production and sales of both hardware and software for the PlayStation series of portable and home game consoles.
It is also a developer and publisher of video game titles.
However, The Next Web said the transaction is subject to regulatory approvals and customary closing conditions.
On the other hand, it said the purchase is also interesting because Gaikai had deals with major Sony competitors like LG and Samsung.
The deals allow it to make video games playable through their "smart TVs," the report said.
Gaikai also has agreements with game retailers, including Walmart.com, Best Buy and Europe’s The Game Group.
"It remains to be seen what will happen with those partnerships, especially with the hardware manufacturers, who should be cursing right about now," The Next Web said. — TJD, GMA News
article source: gmanetwork.com
