Sony Computer Entertainment buys Gaikai for $380 million

Sony Computer Entertainment announced today that it has acquired the world's leading interactive cloud-based gaming company, Gaikai, for $380 million.

Sony Computer Entertainment announced today that it has acquired the prominent interactive cloud-based gaming company, Gaikai, for approximately $380 million.

Through the acquisition, Sony Computer Entertainment will establish a new cloud service using Gaikai's technology, which allows for high-quality, fast interactive cloud-streaming of games onto a variety devices via an internet connection. Sony Computer Entertainment's President and Group CEO, Andrew House, said in a statement: "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.

"SCE will deliver a world-class cloud-streaming service that allows users to instantly enjoy a broad array of content ranging from immersive core games with rich graphics to casual content anytime, anywhere on a variety of internet-connected devices."

The CEO of Gaikai, David Perry, said: "SCE has built an incredible brand with PlayStation and has earned the respect of countless millions of gamers worldwide. We're honored to be able to help SCE rapidly harness the power of the interactive cloud and to continue to grow their ecosystem, to empower developers with new capabilities, to dramatically improve the reach of exciting content and to bring breathtaking new experiences to users worldwide."

Established in 2008 and headquartered in Aliso Viejo, California, Gaikai, was rumored to be looking for a buyer last month, with Fortune reporting that it was looking for a buyer to spend in excess of $500 million.

It is unclear how Sony Computer Entertainment will use Gaikai's technology, which currently offers cloud-based gaming service to stream demo games and applications onto PCs, digital TVs, tablets, and smart phones. Last month Sony Computer Entertainment was rumored to be entering a deal with Gaikai to bring its back catalog of games from the PlayStation 1 and PlayStation 2 to a broad range of devices. While Sony Computer Entertainment did not confirm whether this rumor is true, Gaikai's technology could potentially enable Sony to bring older PlayStation titles to the PlayStation 3, Vita, and other Sony platforms. Sony currently offers select PlayStation 1 and PlayStation 2 games for download via its PlayStation Store.

Polygon has reached out to Sony Computer Entertainment and Gaikai and we will update this story as more information becomes available.

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