Summary
- Sony is acquiring UK-based company iSIZE, signaling a potential shift towards cloud gaming and strengthening its position in the gaming sector.
- The acquisition of iSIZE provides Sony with deep learning expertise in video processing, enhancing its R&D efforts and video/streaming services.
- Sony's investment in cloud gaming appears to be a response to Microsoft's acquisition of Activision Blizzard, and further acquisitions may be on the horizon to boost technical competence.
Sony has announced the acquisition of iSIZE, a UK-based company that focuses on deep learning for video delivery. Earlier this year, Sony was reportedly looking into acquisitions for PlayStation to strengthen its position in the sector, particularly amid Microsoft's efforts at expanding its gaming footprint. While Sony's latest purchase isn't a studio, the move could mark an interesting road ahead for the company's gaming future.
Of course, Sony's ambitious plans aren't limited to acquiring promising studios, but also its technical competency. The PlayStation maker often hinted that fans could expect more cloud gaming capabilities with the then-CEO even teasing aggressive plans on that front. By August, Sony started beta testing 4K cloud gaming on the PS5 offering players titles like God of War Ragnarok, Horizon Forbidden West, Fortnite, Destiny 2, and a few others to stream on its platform. Now, with the company's latest announcement, it appears that Sony may be looking to deliver on its cloud gaming promise, particularly as interest continues to grow in the segment.
In an official statement, Sony Interactive Entertainment announced that it's acquiring iSIZE, a UK-based company that specializes in deep learning for video delivery. While it hasn't disclosed the price, Sony claims that the acquisition would provide the company with "significant expertise in applying machine learning to video processing." The company expects this added expertise to build its R&D efforts along with its video and streaming services. Although Sony hasn't specified how it plans to build its technical capabilities via iSIZE, the company's statement strongly indicates that cloud gaming on PlayStation may get an upgrade in the coming future.
Sony's growing investments in cloud gaming come as no surprise, especially after Microsoft recently completed the $68.7 billion Activision Blizzard acquisition. The Xbox maker finally purchasing Activision Blizzard meant that its deals with the likes of Nvidia, Nintendo, Boosteroid, and others also came into effect. Part of this translates to opening up Xbox and Activision Blizzard titles to more platforms, especially cloud streaming. However, it remains to be seen how effective Sony's own cloud gaming strategy is, and it probably won't be the last time the company makes an acquisition to boost its technical competence.
Incidentally, the acquisition announcement comes only a few days after Sony-owned Bungie laid off around 100 of its staff. The Destiny 2 developer is the fourth Sony-owned studio to go through staff cuts in the same month with Naughty Dog, Visual Arts, and Media Molecule also laying off staff. Unfortunately, layoffs have been far too common across the gaming industry in general during 2023, despite the sector showing promise in other areas such as acquisitions and chart-topping game releases. In any case, time will tell how Sony will navigate this space while looking to grow its footprint.