* Deal to close by the end of August-Sony
* Sony to create Internet cloud games service
By Malathi Nayak and Liana B. Baker
San Francisco, July 2 Sony Corp said on
Monday it would buy the privately held California-based gaming
firm Gaikai Inc for about $380 million as the money-losing
electronics maker seeks to strengthen its online gaming
Founded in 2008, Gaikai, based in Aliso Viejo, California,
is a cloud gaming firm that provides technology to stream video
game content directly to any Internet-connected device. It
competes with OnLive, another U.S. cloud gaming company.
A Sony spokesman said the deal was subject to regulatory
approval and was expected to close by the end of August.
The $78.5 billion global video game industry is witnessing a
shift from console-based games to online titles on Web-based
Andrew House, president of Sony Computer Entertainment,
said in a statement that the acquisition would help Sony create
a cloud gaming 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 Gaikai technology is expected to enhance Sony's gaming
console, the PlayStation, which connects to the Internet but
also allows plays games on physical discs.