Despite fierce competition, Microsoft and Sony have entered into a partnership in video game streaming.
It is expected that when launching the future PlayStation streaming service, Sony will use the Microsoft Azure cloud service.
The companies also announced plans for joint development of AI applications.
“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 Kenichiro Yoshida, president and CEO of Sony. “I believe that our joint development of future cloud solutions will contribute greatly to the advancement of interactive content.”
In order for the PlayStation to remain competitive, Sony will probably have to switch to high-quality streaming online games.
Industry analysts say Sony most likely has already tried to do it independently.
“There was a lot of discussion that Sony seemed to going the traditional route of making a normal console and continuing with what they had been doing in the past. This partnership with Microsoft shows they are fully exploring streaming technology.”
Sony already has significant support in games streaming. Its PS Now service, which provides access to the PlayStation catalog, accounts for 36% of the global market for streaming games.
Nevertheless, it is expected that in the next five years, the market for streaming broadcast will expand rapidly, and the lack of experience of Sony forced the company to enter the market in search of new partnerships.
For Microsoft, this collaboration will open up the possibility of integrating cloud technologies into products such as cameras and televisions, instead of working with business applications, which today represent the core business of the company.
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