Sony buys cloud based gaming service Gaikai for $380 million

Sony’s gaming subsidiary Sony Computer Entertainment (SCE) has splashed $380 million for cloud based gaming service Gaikai. While Sony already has its PlayStation Network for online gaming, the company intends to set up a new cloud service on the basis of the Gaikai acquisition.
Gaikai is a cloud-streaming platform for games, and this is one area where Sony lags behind and it could integrate Gaikai to build a solid competitor to OnLive. It is conceivable that Sony would integrate this service in its PlayStation Suite for mobile and tablets form factors and it could deliver a compelling console class gaming experience via the acquisition, something that cannot be achieved purely on the basis of current generation mobile/tablet hardware. This could give Sony devices a critical edge in terms of gaming in comparison to say, a tablet like the iPad.
The transaction is subject to certain regulatory approvals and customary closing conditions, so most of the details related to the deal have not been revealed.  Notably, back at E3 there were rumblings that Sony would purchase Gaikai for $500 million but the executives remained mum on it. Looks like Sony has managed to bargained hard and it has purchased Gaikai for much lesser.