Sony to buy cloud gaming platform

Sony Computer Entertainment is to buy cloud gaming platform Gaikai in a deal worth about $380 million (€302 million).

The tech firm is planning to set up a new cloud service that will offer everything from core games to casual content to players.

"By combining Gaikai's resources including its technological strength and engineering talent with SCE's extensive game platform knowledge and experience, SCE will provide users with unparalleled cloud entertainment experiences," said Andrew House, president and group CEO of Sony Computer Entertainment.

The deal is expected to close by the end of August.

California-based Gaikai was co-founded by Belfast-born games developer David Perry, who moved to the US in the 1990s to pursue a career in the industry.

Before E3 last month, rumours were rife that Sony was planning a move for Gaikai. The cloud company subsequently announced it had done a deal with Samsung to bring its cloud gaming to Samsung's Smart TV platform, and had also worked with LG.

Sony chief executive 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.

Additional reporting: Bloomberg