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Gaikai: Microsoft will have to enter TV market

David Perry believes that gaming through Smart TV will shift advantage to Sony and Apple

Gaikai co-founder David Perry believes that Microsoft will be forced to enter the TV market to compete with more hardware focused companies like Apple and Sony.

In an interview with CVG, Perry claims that the expanding functionality of the Xbox and PlayStation 3 combined with the emergence of cloud-gaming through Smart TVs will change the way consumers look at consoles.

"I think [the platform holders are] going to stop calling them consoles and they'll start calling them something else," he said.

"Digital TVs are including all of that media stuff. I think the mistake that the console companies are making is not a mistake of their choice - it's the evolution they have to go through.

As soon as AAA game experiences are accessible through "other media hubs" it will disrupt the traditional console market, shifting advantage to those companies with the ability to produce TV hardware.

"I don't mean Checkers, but things like Call of Duty - the public will get confused," Perry continues. "With that in mind, who is able to make a TV? Sony is already making them, so it will have to take all that stuff into its TVs.

"So: my prediction is that Microsoft will have to make a TV. What choice do they have? There have been lots of reports that Apple has bought out a large LCD panel-making company. It's pretty obvious that they're on the trail too."

Last month, Gaikai inked a deal to include its service in LG TVs, and the company's other executives have made no secret of their doubts over the precarious future of the console business.

Microsoft has given no clear indication that it is contemplating a move into television hardware, though television content will play a key role in the future of the Xbox platform.

In December last year, rumours emerged that the company was seeking an executive to develop first-party TV content for Xbox Live. However, plans for an "Xbox Live Diamond TV service" were recently put on hold due to prohibitive licensing costs.

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Latest comments (11)

Good thing about a console though....you can use it with any TV! How often do people change TVs. Not that often. Especially bedroom TV's. Its good to have the freedom to move it about the house or to a friends house when youre a kid. Simple as.
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Wesley Williams Quality Assurance 4 years ago
They'd probably be better off just buying OnLive and providing Xbox content that way.
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Thomas Dolby Project Manager / Lead Programmer, Ai Solve4 years ago
I can see Microsoft perhaps expanding the XBox to receive television, but I really don't want to have a different TV for different software. In my opinion TVs should be the the generic hub in the middle of the entertainment like they are right now.

"I fancy playing on my PS4 today, I guess I better go get my Sony 40" TV out and put the Microsoft 40" TV with the Wii U 36" Interactive Surface!"
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Show all comments (11)
Bruce Everiss Marketing Consultant 4 years ago
Microsoft own a big chunk of one of the Chinese TV manufacturers.
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Jim Webb Executive Editor/Community Director, E-mpire Ltd. Co.4 years ago
Consumers still want consoles. A TV based service will not replicate the home console experience. Will it have a market? Sure. Will it force consoles to become TV services themselves? This question barely warrants an answer with a straight face.
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Brian Smith Artist 4 years ago
David Perry's comments and predictions on his competitors are always very loaded towards positive outcomes for Gaikai and it too obviously comes across as media spin for me. Statements like the 'What choice do they have ?' either smack of being ill-informed (unlikely in Mr Perry's case) or are being said just to create a bit of a ripple for folk to gravitate towards and discuss, and hey... it works. He's biased I guess but who wouldn't be in his position. This didn't go down as interesting news to me, just Gaikai marketing themselves every way they can.
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@Brian. Agree 100 percent. Its all designed to swing opinion. Practicality will win the day. People wont put all their eggs in the one basket (TV unit). If something goes wrong with it, thats it. No TV, no games machine.
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Christopher Benton Writer 4 years ago
Obviously David Perry is speaking in hus and Gaiki's best interest. At the same time, OnLive and Gaiki and cloud gaming in general pose a real threat to console in that the technology to play console-level games can be put in anything from a TV, to an iPhone, to a low-powered netbook. Still, I dont see how this would make Microsoft have to make a television set.
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Rod Oracheski Editor, Star News4 years ago
I think they're far more likely to go for the far more lucrative 'services' angle and provide the software platform those smart TVs use, instead of getting into a market that has helped Sony lose $2 billion in a quarter.
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Greg Wilcox Creator, Destroy All Fanboys! 4 years ago
Er... anyone remember that Samsung and Microsoft were huge partners when the 360 launched back in 2005? They were practically inseparable in those early days. Anyway, I don't think we'll see a MSTV anytime soon (unless the next Xbox plays Blu-Rays out of the box and MS wants to make (or lose) money with more branding and tie-in tech to blow rent money on...
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Kunal Patwe Studying MProf Games Development, University of Abertay Dundee4 years ago
If I remember correctly, I think Microsoft invested heavily, about a year ago, for research into glass-free 3D-TV technology. So I think we will be able to see those kind of TVs from Microsoft. Hopefully sooner than later.
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