The CEO of Sony, Kenichiro Yoshida, has said that the cloud is promising when it comes to games, it is also not without its technical difficulties.

Speaking to the FT, the chief exec said that the biggest challenge facing this burgeoning field is latency, but also costs. Yoshida points to inefficiences when it comes to the business model, such as companies having to have many servers to meet demand when needed, but often these will not be used to full capacity.

“I think cloud itself is an amazing business model, but when it comes to games, the technical difficulties are high,” Yoshida said.

“So there will be challenges to cloud gaming, but we want to take on those challenges.”

This comes in the wake of the UK's CMA blocking Microsoft's acquisition of Activision Blizzard on the basis that the Xbox firm already has a dominating position in the cloud games space and this deal would only increase that. Sony had an early start in the streaming market with the purchase of Gaikai in 2012, though the firm has hardly capitalised on this head start.