Sony’s CEO downplays the threat of cloud gaming to consoles, citing technical challenges and user hesitations. In an interview, Kenichiro Yoshida discusses Sony’s interest in exploring streaming options and leveraging AI, while acknowledging the complexities involved. The article also covers issues with latency, publisher support, Sony’s early investments in cloud gaming, cost inefficiencies, and the potential impact of Microsoft’s acquisition of Activision. A comprehensive overview of Sony’s approach to cloud gaming and the evolving industry landscape.
Sony’s chief executive, Kenichiro Yoshida, has addressed the potential impact of cloud gaming on consoles, emphasizing that the technology still presents significant technical challenges. In an interview with the Financial Times, Yoshida explained that while cloud computing is a remarkable business model, gaming, in particular, poses unique difficulties due to the high demands for low latency and fast response times from gamers.
Yoshida acknowledged that cloud gaming is an area of interest for Sony, stating that the company would explore various options for streaming games over the internet. He even mentioned the possibility of utilizing GT Sophy, Sony’s artificial intelligence agent, to enhance the cloud gaming experience. However, he cautioned that the complexities involved in delivering a seamless cloud gaming experience should not be underestimated.
Despite numerous attempts to revolutionize the gaming industry with cloud gaming, many users have been hesitant to fully embrace streaming games over the internet, fearing potential issues such as lags caused by inconsistent internet connectivity and server speeds. Additionally, game publishers have not wholeheartedly supported the cloud gaming movement. For instance, Google shut down its Stadia streaming service in January after facing challenges in convincing top game producers to make their titles available on the platform.
Sony, as an early entrant in the cloud gaming market, acquired cloud gaming company Gaikai in 2012 and subsequently incorporated its technology. In 2014, Sony launched a cloud gaming subscription service, which has since been integrated into its upgraded and expanded service, PS Plus Premium. However, analysts suggest that Sony has not fully capitalized on its early investments to establish itself as a leader in the cloud gaming space.
Yoshida also shed light on the cost inefficiencies associated with cloud gaming. Specifically, he highlighted the issue of servers remaining idle for extended periods during the day and facing high traffic levels during peak gaming hours, which can strain their capabilities. To mitigate this, Sony has utilized the quieter hours to deploy GT Sophy for AI learning, particularly in the auto-racing simulator Gran Turismo, in an effort to enhance competitiveness.
When asked about the potential impact of Microsoft’s proposed $75 billion acquisition of Activision, the publisher behind popular game franchises like Call of Duty and World of Warcraft, Yoshida refrained from commenting, citing ongoing regulatory reviews. The UK competition regulator recently blocked the acquisition, expressing concerns about Microsoft’s growing dominance in the nascent cloud gaming market. However, EU regulators cleared the purchase, taking into account concessions made by Microsoft.
If the deal ultimately proceeds, Microsoft would become the third-largest gaming company by revenue, following China’s Tencent and Sony. Yoshida’s comments reflect Sony’s cautious stance on the evolving landscape of cloud gaming while acknowledging the need to address technical challenges and embrace opportunities in this rapidly evolving market.
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