Gaikai: Delivering instant MMOs to your browserThe gaming cloud company Gaikai, which partnered with Warner Bros. Interactive last March to stream an hour of gameplay in two different AAA games and more recently was in the news for partnering with En Masse to offer an instant streaming version of TERA's demo, was just acquired by Sony for the sum of $380 million.
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What has Sony bought for its $380 million, and what does it mean for its competitors?
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What Gaikai promises, rather than an alternative path forward for high-end gaming, is a variety of new opportunities at the low- and mid-range of the market. It's a fantastic option for selling access to a back catalogue, for example, and should provide Sony with many new opportunities to monetise the impressive back catalogue of PlayStation, PS2, PSP and PS3 titles. Those opportunities are not merely technical (although this should, in theory, eliminate some of the barriers to making legacy titles available on new systems), but also commercial. Subscription business models or the ability to use back catalogue access as a sweetener for other subscription products are also opened up by Gaikai - and Sony has already demonstrated an affinity for that kind of proposition with PlayStation Plus, which makes an increasingly impressive library of software available to customers for the duration of their subscription.
Gaikai is also, as its founder Dave Perry has been keen to emphasise from the outset, a great marketing tool. As game demos have grown in size, now often clocking in at multiple gigabytes, they've become less and less appealing to consumers - many of whom, especially in the United States, face tough bandwidth caps from their ISPs. Streaming offers a chance to let players try a game instantly without the inconvenience of a large download