Key Inflection Point for Video Gaming in the Cloud

Sony’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 $380 million is a bet on the future of games distribution and bears little relation to revenue multiples or DCF analysis.

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.

via StrategyAnalytics

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About David H Deans

Principal Consultant and Founder of GeoActive Group USA - http://www.geoactivegroup.com - follow @dhdeans
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