#gaiki

Do you want to play PS3 games on your PS4? Even though the PS4 isn't backwards compatible, Sony plans on launching it's Gaiki cloud services, which includes a library of PS3 games, next year in North America.

Not every PS3 game will be available at launch, but the library will grow over time. However, it is reported that there will be a good selection of games at launch. 

Sony is buying GaiKai, if you don't know what that is it is a service that allows a game to be played over a streaming service.  You don't need a fancy expensive Ferrari of the gaming consoles (that's what Sony called with PS3 at it's release), all you need is a screen, an inexpensive box (not unlike you $70 roku) and a controller ... hooked into your network obviously.

My prediction is that the acquisition of this service, is more about combating the expected Apple TV and offering a better Smart TV experience, then it is about immediate integration into the PS3 (or PS4 release next year.)

This move to me, shows that Sony has a good outlook ahead to it's future and it's recovery.  Sony is striking out, and looking at emerging markets and trends for long term success.

Why do I think this?  Small business plans are 3-5 years ... a console like the PS4 with a 5+ year shelf life, is a short term (immediate) business strategy.  They have likely been working on aspects of the PS4 platform for the last 5 years.

They already largely know their launch plan for the PS4 - and I doubt they were waiting on this acquisition before rolling out.  This acquisition is not about the PS4 console.  It will take them the 5 core years of the PS4 life cycle just to make widespread use of this technology platform, playing a waiting game while infrastructure catches up.

This acquisition to me says it's a part of Sony's long term business plan, and when I say that I am talking about an outlook ahead of 8-10 years - that will be the sweet spot for the widespread utilization of this technology.

This is about controlling 'eyes on the screen'.  Pixels are realestate in the entertainment business, you want to own as much of the screen realestate as possible and be the one delivering content to it.

So, that all is not to say that they won't utilize Gaikai streaming with the PS4 Obris, or the Vita, etc.  I am absolutely sure that they will roll out some stunning application of it and connectivity, a tech demo of sorts, showing what they are capable of and to prove the technology.  Then over the course of the next console generation they will get the consumer base used to the idea ... just like this last console generation was really used to get everyone online and steer us toward out digital future.  This is all evolution.

This Gaikai move is not about the core gamer either ... I don't think it will have much impact on the core gamer or the market.  It could be about everyone else who has a screen and is not already a gamer.  The market of people who own a TV but do not own a console vastly exceeds the number of core gamers that do.  With this technology, you could reach out to all of them.  But knowing Sony, they probably won't be delivering content to your iPhone, instead they want to entice you to purchase one of their devices - that sucks, they should quit thinking like that and consider every screen as eye share they could tap into with content.

Sony could also use this as a marketing tool.  If you have a Sony Smart TV, or a Sony stream box (sub $100) capable of running the gaikai service, they could deliver to you demos of their games ... maybe demo's that are enticing enough to get you to go out and buy the console so you have have the complete high fidelity experience (no lag, no compression, etc.)