Sony enters the cloud with Gaikai acquisition

Sony Computer Entertainment put a significant foot forward into the cloud gaming space today, as it revealed that it has signed an agreement to acquire game streaming service Gaikai. Gaikai, along with OnLive, is one of the biggest players in the burgeoning cloud gaming market. Various publishers and even Sony have previously predicted that game streaming will play a huge role in the industry's future, as it allows consumers to play titles almost immediately without installation. Through this acquisition, Sony is planning to build its own new cloud gaming service using Gaikai's resources. The deal cost Sony approximately $380 million, subject to "certain regulatory approvals and customary closing conditions." It was rumored earlier this month that Gaikai was looking for a buyer, although the reports indicated that the company was looking for well over $500 million. It was also rumored that Sony would reveal its acquisition of Gaikai at E3, but no such announcement was made at the event, and Gaikai declined to comment on those rumors to Gamasutra. Andrew House, president and CEO of SCE, explained that the company will now look to deliver cloud gaming and other streaming content on "a variety of internet-connected devices." He added that SCE is planning to "aggressively expand" its entertainment offerings through the introduction of this technology.