Playstation Now game-streaming service announced at CES 2014 - Telegraph.co.uk

"PlayStation Now will bring the back catalogue and scale to this technology in a way that can tangibly bring the console experience to a wide portfolio of devices, from mobile to Smart TV."

Users will be able to choose whether to rent specific game titles or pay a subscription that will enable them to explore a range of titles. As the games are hosted in the cloud, users can log into their Sony Entertainment Network account from any compatible device and their games and saved progress will be instantly accessible.

PlayStation Now will launch in the United States this summer, but Sony was unable to confirm a timetable for its European rollout.

"When it comes to broadband provision, Europe is a considerably more complex region, with a huge number of different providers and varying connection speeds from country to country. In short, we need a little more time to ensure a smooth and successful roll-out," the company said in a blog post.

Nina Rahmatallah, director of brand development firm Added Value, said that the cloud gaming service could be a game changer for Sony within the TV and tablet categories.

"It's an example of convergence at its best – Sony bringing together many of its key assets into one place/device. It will almost certainly give Sony an advantage over its competition, none of whom have the capability to follow suit without partnering with a third-party brand," said Rahmatallah.

There is a risk that Playstation Now could cannibalise Sony's core games console business. According to Andrew House, Sony has sold 4.2 million PS4s since the console launch in November.

However, Cole said that the console will still offer a different type of gaming experience versus a tablet, for example, suited to particular types of gaming and lengths of play.

"The long term risk of cannibalization may come from the ability for Sony's smart TVs to replicate the entire console experience, but in the foreseeable future this will be controlled by the scale of Sony Smart TV and the way the brand makes new releases available on its Now platform vs. console exclusivity, " he said.

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