Rumor: Sony Announcing Cloud Gaming Deal at E3 2012

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kowenicki said:

Soleron said:

kowenicki said:

DirtyP2002 said:

I know Sony desperatly needs to monetize the PSN, but this would cannibalize their software sales. I don't think this is a clever move for them.

this was my concern for MS and Sony too... surely any integration of Onlive just reduces income for them from the main profit driver... the games themselves.

Have to wait and see how it works but I dont get the financials of it right now.

1. Revenue sharing between Onlive and the console maker

2. Any game available on both PS3 and OnLive is going to be a much better experience on PS3, because of bandwidth limits, connection issues and wanting to own the game and its data yourself. The games people will use OnLive for are the games that they'd run on PC if  they had a good enough PC.

1.  by far the greater share for Onlive.. 

2. I accept that, but if I am a subscriber to onlive (£6.99 per month) and a game that is on both PS3 and Onlive becomes available, then it is essentially free via Onlive versus £40 to buy the game...

 

Anyway lets see how MS and Sony implement this in the future, if at all... there is no way one or the other will allow their competitor to be the only ones doing this.

1. You can't be sure Onlive would be getting the larger share, so don't assume.

To add my own point, this might not be cannabalism. In fact, it might be a good pre-emptive move. Onlive's and other cloud services are eating into profits anyway. Why let the competition grow when you can integrate.