In an interview with the Financial Times, Kenichiro Yoshida said the PlayStation creator would still study "various options" in the future for streaming games over the Internet itself, adding it could use GT Sophy, its artificial intelligence agent, to enhance cloud gaming.

"I think cloud itself is an amazing business model, but when it comes to games, the technical difficulties are high," said Yoshida, citing latency -- the fast response times demanded by gamers -- as the biggest issue.

"So there will be challenges to cloud gaming, but we want to take on those challenges," Yoshida said.

Despite various attempts to remake the gaming industry around the cloud, many users have yet to switch from a console or high-end gaming PC to streaming games entirely over the Internet, fearing the lags that can be caused by slowing Internet connectivity and server speeds.

He added that publishers have not been supportive to the idea of cloud gaming.