Sony Interactive Entertainment acquires AI-learning video company iSIZE

Sony Interactive Entertainment (SIE) revealed it's "entered into an agreement to acquire" AI developer iSIZE for an undisclosed sum. The London-based company is notable for "deep learning for video delivery," and builds "AI-powered solutions" for the media and entertainment industries. 

With its new subsidiary, SIE aims to "apply machine learning to video processing, which will benefit a range of our R&D efforts as well as our video and streaming services." 

Cloud streaming in the mix

The mention of video and streaming is notable given that earlier in the week, the PlayStation 5 added cloud streaming for PlayStation Plus members. Cloud technology is a big focus point for Microsoft, which previously called it a small market, albeit one it's nonetheless very interested in.

Reports from earlier in the year indicate the next major Xbox console will include cloud streaming in its ecosystem, and it's likely that holds true for Sony as well. Prior to his leaving, then-SIE president Jim Ryan said the cloud market would become important for games by 2025. 

Whether or not that's the case, the two console makers have a clear interest in the technology. Microsoft gave Ubisoft the cloud streaming rights to Activision Blizzard games until 2038 (if not 2039), and the PS5's current streaming capabilities will likely return in some capacity for its eventual full-on successor. 

The purchase of iSIZE comes days after SIE subsidiary Bungie laid off around 100 employees, and weeks after similar layoffs took places at first-party studios Media Molecule, PlayStation Visual Arts, and Naughty Dog.