Cloud gaming service Gaikai strikes major Smart TV integration deal

LG Electronics will integrate Gaikai's cloud gaming platform into its "Smart TV" service on select Digital TVs, allowing consumers to instantly stream and play games without extra hardware. This partnership with the Korean consumer electronics company is one of the biggest for Gaikai, which has been aggressive in securing deals to expand its game demo streaming service in recent months through agreements with YouTube, Best Buy, and others. It also counters a similar partnership announced between rival cloud gaming service OnLive and U.S.-based consumer electronics firm Vizio last year, which integrates streaming games into the company's TVs, Blu-ray players, and mobile devices. Gaikai CEO David Perry previously noted that his company's technology had an advantage over OnLive, which used a proprietary compression chip for media player integration: "We're able to stream our [technology] into the TV without putting in any chip." "That's a pretty big advantage, and there's been a lot of effort put into that," Perry added. "We can put the Gaikai app on the Vizio TV without modification of the Vizio TV." He also predicted that Gaikai would eventually be "on lots of televisions," starting in 2012. LG will begin offering Gaikai's cloud gaming portal through its Smart TV service beginning with its 2012 line of large-screen LG Cinema 3D TVs. Consumers with a Smart TV log-in will be able to play free demos and purchase PC versions of games. Update: This story has been corrected to reflect that the Smart TV version of Gaikai's service will offer full PC games for purchase, and not just demonstration versions as previously reported.