Videogames Move to Online

Internet has made a big influence for new technology innovations. Today, we don’t imagine a day without connection to the world. Internet has become a significant part of our lives. When few years ago we would say “sorry, I missed your call”, today, “sorry I missed your call, text, email, Skype, Facebook post, Tweet and etc.” While it is easy to keep up with technology for us, some companies are having difficulties. A good example is well known Kodak. The company fell behind new technology and therefore was not able to compete in the market. In contrast, Sony has recognized the impact of new technology and the need to adjust their products. Sony Corp. has decided to buy Gaikai Inc., which is known for streaming videogames over the internet. The videogame industry has changed significantly from years ago: from the dedicated machine for games to online games, today. It is expected that all videogames will shift to online eventually.  By combining both companies, Sony will gain technological strength which is significant in competitive market.

Sony has learned a lesson on missing out on moving technology. Years ago, Sony pioneered a portable music player; however, the company did not improve since and Apple took over. Sony did not recognize the significance of improving the music players and as a result iPods and iTunes took place instead.

It is very important for companies to foresee the improvement in technology and demand for it. The companies must adjust their products to gain competitive advantage in the market. In class we have already learned the importance of product design. The company must identify customer wants and needs, also identify how the product will satisfy the customer. Company must develop importance ratings and evaluate the competing products.

Do you think the videogame industry will become available purely online? Do you support Sony for acquiring Gaikai Inc.?


Wakabayashi, Daisuke (2012, July 3).Sony Makes a Shift To Streaming Games. WJS, page B3.

7 thoughts on “Videogames Move to Online

  1. The original poster asked “Do you think the videogame industry will become available purely online? Do you support Sony for acquiring Gaikai Inc.?”

    To the former question my response is ‘I hope so.’ PC gamers have been tenaciously waiting for “Halo 3,” “Halo Wars,” and “Halo Reach” to become available for PCs. So far, they have waited in vain. If all video games became available online it would eliminate the need for consoles and remove the ‘exclusivity’ problem. For example, consumers would not have to choose between a Nintendo (the only console capable of playing “Super Mash Bros” or Xbox (the only console capable of playing the “Halo” franchise.

    To the latter question my response is ‘Yes, but I doubt Sony will succeed.” 10 years ago Sony looked unstoppable. The Sony brand was the most prestigious producer of digital cameras and audio/video entertainment systems; Sony’s Vaio laptops were the most fashionable computers on the market; and its PlayStation 2 game console controlled over 70% market share. However, as the original poster inferred, Sony was to slow to adapt to change. Consumers who wanted cool entertainment devices or stylish electronics switched to Apple products. Meanwhile Microsoft’s “Xbox 360” and Nintendo’s “Wii” put the “PS3” to shame.

    I think Sony will fail because of Japan’s socio-political system, which favors loyalty and collective decision making, over shareholder profits. For example, if a new supplier could provide Sony with better and cheaper laptop batteries, Sony would not upgrade because of their loyalty to their existing supplier. An American company in the same position would switch suppliers immediately. Japan’s egalitarian society makes its industries uncompetitive and unprepared for change.

    This video gives a more detailed description of Japan’s socio-political problems.

  2. Halo Wars is DANK!!! But I do not think it should be available for PC!! SONY FAIL!? What! No chance at all, they have cash, and endless amount of products to produce. The market is vast, no one company can control such a market that these companies are in.

  3. I agree with Tijoj post. Companies that fail to change get left behind. Does anyone still use a Sony Walkman? Its interesting to see how Japan’s loyalty is being antiquated. I do not think gaming will revert back to PC’s because the market itself for PCs in decreasing as well. The consoles make too much money and they already do downloadable gaming. Xbox Live Marketplace is already leading the market. I think Sony is just trying to keep up or trying to help differentiate themselves better.

  4. While I dont buy video games often, I have noticed a drastic change as to how games are purchased, played and updated. No more than 5 or 6 years ago there was no downloadable games for Xbox, but know not only can you buy games/ expansion packs from the comfort of your home but you can update them as well in order to fix problems that may have once caused problems for game play. I am a huge supporter of online downloadable products and believe that Kodak is a perfect example of what can happen to company that doesn’t keep up with this fast passed changing market.

  5. I have been hearing on the news lately that people are no longer willing to buy video games for $60, and that is largely due to the growing online gaming industry. With so many inexpensive online entertainment options these days, it doesn’t really make sense for someone to shell out big bucks when they can get a cheaper game without even having to leave the comfort of their own home.

  6. I think it will because in order to make money a company must stand out from its competitors. I think online will make them different from companies like Xbox and Nintendo. I do support Sony acquiring Gaikai Inc. because if they wouldn’t have acquired them then another company would’ve and that would’ve been bad for them. In business you always have to see everything early and how something will benefit or harm your company and that is why I support Sony’s acquisition of Gaikai Inc.

  7. I think downloaded games will soon overtake the traditional out-of-the box revenues. But it needs some improvement and in the near future, it can happen.

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