Sony Computer Entertainment plans to acquire Gaikai, a cloud-based gaming company located in California, making it the first major video game company to invest in a game streaming service.
Gaikai, which Sony is purchasing for $380 million, streams games from remote servers, allowing devices with weaker processors, like TVs and tablets, to play high-quality video games.
"SCE will deliver a world-class cloud-treaming service that allows users to instantly enjoy a broad array of content ranging from immersive core games with rich graphics to casual content anytime, anywhere on a variety of Internet-connected devices," Andrew House, the president and CEO of Sony Entertainment, said in a statement.
The acquisition, at a time when Sony is struggling to return to profitability, could help generate more income.
The transaction is still subject to regulatory approvals and customary closing conditions.