Sony and Microsoft Want to Collaborate on Game Streaming

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Sony and Microsoft plan to collaborate in multiple areas around gaming infrastructure, semiconductors and artificial intelligence. Among other things, Sony wants to use Microsoft’s Azure service for game streams.

Sony and Microsoft have signed a letter of intent regarding the cooperation plans. It states that the two companies are jointly investigating the current and future possibilities of Microsoft Azure for each other’s services around streaming games and other content. Although it’s not directly there, it appears that Sony is opting to run its PlayStation Now game streaming service on Microsoft’s Azure cloud platform.

Microsoft is a major competitor of Sony and is not only with the game consoles but also seems to be with game streaming. Microsoft is working on its own xCloud service for Xbox, which will also run on Azure. Sony chief executive Kenichiro Yoshida acknowledges that the two companies compete in some areas: “But I believe that our joint development for future cloud services will help advance interactive content.”

In addition, the two companies report that a collaboration should also lead to better development environments for game studios. Microsoft has been trying to make its Azure platform attractive to game companies for some time. This should make it easier for them to roll out updates, manage the online options and use social networks around games. Amazon also serves this market with its cloud platform. The newcomer to the game streaming market, Google Stadia, appears to be facing stiffer competition as a result of the partnership.

The collaboration plans also include semiconductor and artificial intelligence. For example, the companies may jointly develop ‘intelligent’ image sensors in which Sony uses its knowledge about those sensors and Microsoft’s progress in artificial intelligence. The intention is for Sony to integrate more artificial intelligence from Azure AI into its consumer products.

The companies have not yet announced more details. In any case, Microsoft seems to be announcing more about its xCloud game streaming service during the upcoming E3 game show. After Google announced Stadia, Phil Spencer of Microsoft’s Gaming division, Thurrot said, announced that his company would be big on this area at E3.

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