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Sony buys Gaikai for $380 million

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The maker of PlayStation game consoles is preparing to expand cloud-based entertainment services. Gaikai, based in Aliso Viejo, California, has expertise in transmitting data between cloud servers and users without delay so users can play games with fewer delays, said Satoshi Nakajima, a spokesman for Sony's game unit.

Chief Executive Officer Kazuo Hirai pledged in April to revive earnings at Sony by focusing on game players, digital imaging products such as cameras, and mobile devices including smartphones. The proposed acquisition shows that the company seeks to boost sales from going online, said Takashi Oka, a Tokyo-based analyst at TIW Inc.

“It’s a positive move that shows Sony is focusing on online gaming services,” said Oka. “Online services have the potential to grow into a stable source of revenue within two to three years, if Sony can line up good titles.”

Sony aims to revive earnings by boosting sales at its game unit after introducing PlayStation Vita handheld machines last year. The maker of Cyber-shot cameras and Bravia televisions posted a 457 billion yen (£4 billion) loss for the year ended March 31, as its TV unit continued losing money amid the strong yen, falling prices and competition from South Korea’s Samsung.


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