In business, sometimes it’s in your best interest to work with your competition.
On May 16, Microsoft and Sony have announced a partnership that includes technology and information sharing. The announcement states the two will jointly develop future cloud solutions within Microsoft Azure. The mention of Microsoft’s cloud solutions in gaming comes just as Microsoft is planning its own streaming platform xCloud which will compete against Google Stadia.
— Microsoft (@Microsoft) May 16, 2019
Microsoft says “these efforts will also include building better development platforms for the content creator community,” which sounds like both Sony and Microsoft are planning to partner on future services aimed at creators and the gaming community. Both companies say they will “share additional information when available,” but the partnership means Microsoft and Sony will collaborate on cloud gaming. That’s a pretty big deal, and it’s a big loss for Microsoft’s main cloud rival, Amazon.
Alongside the cloud gaming and content-streaming partnership, the pair of companies will also collaborate on semiconductors and artificial intelligence (AI). This will include intelligent image sensor solutions that use Azure AI, and Sony using Microsoft’s AI platform in its consumer products.
“Sony has always been a leader in both entertainment and technology, and the collaboration we announced today builds on this history of innovation,” says Microsoft CEO Satya Nadella. “Our partnership brings the power of Azure and Azure AI to Sony to deliver new gaming and entertainment experiences for customers.”