Sony’s Next PlayStation To Stream Games

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By Vijaykumar Meti | February 18, 2013 7:00 PM EST

Sony Crop is planning to create their next gaming console in a completely different way. The next gaming console - PlayStation (codenamed Orbis) - will use a technology to stream games.

The new technology will be unveiled Wednesday along with the new gaming console which allows the users to play games over the internet, people familiar with Sony's plan told the Wall Street Journal.

Last year, Sony acquired a cloud gaming service, Gaikai, for $380 million. Gaikai allows playing streamed AAA games in variety of internet-enable devices. Although there are many companies that offer simple games over the Internet, Gaikai offers online access to games with high visual intensity. It also launched demos of recent games such as Dead Space 2, The Sims 3, Spore and Mass Effect 2.

The new streaming technology is one of the new features that are expected to be offered with the next PlayStation, which Sony plans to unveil at simultaneous events in London and New York February 20.

The WSJ report does not mention the subscription fees for streaming games.

Microsoft Crop, which is a long-time competitor for Sony, is also expected to unveil its next generation gaming console this year.

Meanwhile, industry experts say that cloud gaming will become an important segment of the gaming market. It also ensures low costs for gamers and allows them to play high visual intense games on their mobile device.

"Cloud gaming makes games much more convenient," said Jen-Hsun Huang, chief executive of Nvidia Corp. "It's instant-on and you can play it about anywhere on any device; it will make for a much larger gaming industry."

Nvidia is a chip maker company that had worked with Gaikai before the acquisition and has developed streaming technology to enable services.

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