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- Case studies and best practices
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PlayStation’s acquisition of leading cloud gaming platform Gaikai signals a key inflection point for the evolution of both traditional video gaming (hardware, packaged media based) and digital gaming. This is a significant acquisition in cash terms: valuing a business with extremely low revenues at $380m is a bet on the future of games distribution and bears little relation to revenue multiples or DCF analysis. PlayStation has perhaps suffered most out of the major console manufacturers from the long term decline of packaged games sales and dedicated gaming hardware given the heights reached during the PS2 era and subsequent struggles in the following hardware generation. PlayStation is addressing a future in which dedicated games hardware retreats to a high-end niche while a host of digital and online specialists erode the core packaged games business.
Cloud Gaming Grows Up: Sony Buys Gaikai
Author: Ed Barton
Publication Date: Jul 03 2012
Report Type: Insight, Word
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