Sony Computer Entertainment has purchased the cloud gaming service Gaikai for $380m.
The long-rumoured deal will see Sony build a new cloud gaming service "ensuring that it continues to provide users with truly innovative and immersive interactive entertainment".
Gaikai was established in 2008, and allowed users to play graphically-intensive games over the internet, without downloading the game to their own devices.
Sony said it intends to take "full advantage" of Gaikai's technology and infrastructure, though no announcements of what form its new service might take have been made.
ndrew House, President and Group CEO of Sony Computer Entertainment Inc said: "By combining Gaikai's resources including its technological strength and engineering talent with SCE's extensive game platform knowledge and experience, SCE will provide users with unparalleled cloud entertainment experiences."
"SCE will deliver a world-class cloud-streaming 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."
David Perry, CEO of Gaikai Inc, said: "SCE has built an incredible brand with PlayStation and has earned the respect of countless millions of gamers worldwide,.
"We're honored to be able to help SCE rapidly harness the power of the interactive cloud and to continue to grow their ecosystem, to empower developers with new capabilities, to dramatically improve the reach of exciting content and to bring breathtaking new experiences to users worldwide."