Sony CEO Kenichiro Yoshida On Cloud Gaming: 'Technical Difficulties Are High'

Sony Group Corp (NYSE: SONY) CEO Kenichiro Yoshida expressed caution about the technical challenges associated with cloud gaming, downplaying the potential risks to the company as its rival Microsoft Corp (NASDAQ: MSFT) heavily invests in the technology.

"I think cloud itself is an amazing business model, but when it comes to games, the technical difficulties are high," Yoshida told the Financial Times. "So there will be challenges to cloud gaming, but we want to take on those challenges."

See Also: How AI Is Revolutionizing Game Development: Insights From Sony's Shuhei Yoshida

Yoshida said Sony would explore various options for streaming games over the internet, potentially leveraging their artificial intelligence agent, GT Sophy, to enhance cloud gaming.

The CEO also highlighted the cost inefficiencies of cloud gaming, with servers often idle for extended periods before experiencing high levels of traffic during peak gaming hours.

"The dark time for cloud gaming had been an issue for Microsoft as well as Google, but it was meaningful that we were able to use those [quieter] hours for AI learning," Yoshida added.

Recently, Sony has been hiring personnel to develop a new cloud gaming service, with 22 vacancies posted. "As a member of Sony Interactive Entertainment’s Future Technology Group (FTG), you’ll have the opportunity to lead the charge in the cloud gaming revolution. FTG is at the forefront of putting console-quality video games on any device," the job posting said.

Yoshida's remarks follow the UK's Competition and Markets Authority (CMA) decision to block Microsoft's proposed $68.7 billion acquisition of Activision Blizzard Inc (NASDAQ: ATVI), a move that sent shockwaves through the video game industry. The CMA expressed concerns about the potential exclusivity of Activision Blizzard games, such as Call of Duty, on Xbox Cloud Gaming, which could strengthen Microsoft's dominance in the growing market.

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Photo: Courtesy Sony Kenichiro Yoshida on Twitter