Microsoft and Sony have formed a partnership on video games streaming, despite being fierce competitors.
It is expected Sony will use Microsoft’s Azure cloud service to host its upcoming PlayStation streaming service.
Microsoft has been trialling a streaming offer of its own, under its Xbox brand.
The surprise annoucement was made via Microsoft’s website and reveals that the two companies are to partner, ‘on new innovations to enhance customer experiences in their direct-to-consumer entertainment platforms and AI solutions’.
“For many years, Microsoft has been a key business partner for us, though of course the two companies have also been competing in some areas,” said Kenichio Yoshida, Sony’s chief executive.
“I believe that our joint development of future cloud solutions will contribute greatly to the advancement of interactive content.”
Microsoft’s chief executive, Satya Nadella, said: “Sony has always been a leader in both entertainment and technology, and the collaboration we announced today builds on this history of innovation.”
The two companies have been bitter rivals in gaming since the launch of the first Xbox console in 2001.
But in its pursuit to compete with Amazon Web Services, hosting PlayStation’s streaming service would be a major coup for Azure, the fastest growing part of Microsoft’s business.
For Sony, if its PlayStation is to remain competitive, it too is likely to need to move heavily into streaming full, high-quality games over the internet.
Exactly why is open to speculation, but rather than being afraid of Google Stadia (and Amazon’s rumoured video game plans) it’s likely to be simply a practical decision based on Microsoft’s existing expertise with video games.
Microsoft and Sony have signed a ‘memorandum of understanding’ that will allow the two companies to ‘explore joint development of future cloud solutions in Microsoft Azure to support their respective game and content-streaming services. In addition, the two companies will explore the use of current Microsoft Azure datacenter-based solutions for Sony’s game and content-streaming services’.
That leaves some wriggle room for either company to back out of the deal if they get cold feet but they’re also collaborating on new semiconductor tech as well, so their plans run deep in terms of both company’s video games businesses.
