Cloud gaming is great business but technically complicated, says Sony CEO

2023-06-04 10:48:00

Acting in the cloud gaming business since 2014 with Playstation Now, recently boosted by its merger, in 2022, with the Playstation Plus Premium subscription, Sony already knows how to see the good and bad side of this type of service.

In an interview with the Financial Times, Sony CEO Kenichiro Yoshida says it’s an amazing business model, but still very difficult on a technical level. He cites that the relatively high latency for cloud gaming was something that was still an issue. Sony was one of the first big companies to enter the market, having acquired cloud gaming company Gaikai for $380 million in 2012 and later the technologies of its rival OnLive.

Yoshida also claims that cloud game servers are not heavily used during the day, but at night they get crowded. He referred to this period as the “dark time” and stated that this was also an issue for Microsoft in its cloud gaming services. Finally, he stated that there are still “challenges for cloud gaming, but we want to address them”.

The statements are particularly interesting given the fact that the UK’s Markets and Competition Authority rejected the $69 billion deal for Microsoft to buy Activision Blizzard instead of the company’s cloud gaming service. When the CMA made the decision, it claimed that such a deal would “harm competition in the cloud gaming market”.

On the other hand, the interview seems to indicate that Sony’s own push into cloud gaming hasn’t been easy, and it remains a small part of the overall console and PC gaming industry.

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