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Sony to buy game streaming company Gaikai

Mon, 07/02/2012 - 12:52pm
The Associated Press

Sony is buying the video game-streaming company Gaikai for $380 million in a bid to establish a new cloud-based gaming service.

Video game streaming is not as widespread as music and movie streaming largely because the technology is far more complicated. Games cannot be compressed into smaller files, like movies are, before they are sent over a broadband connection. And since they are interactive, video games require an immediate reaction to a player's actions so that on-screen characters can respond in time.

Gaikai's technology lets people play video games on Internet-connected devices, including mobile gadgets, computers and TV sets.

Sony Corp. said Monday that Gaikai will become part of its video game business, Sony Computer Entertainment.

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