Players celebrate deal between Sony and Microsoft as the end of the console war – but what is behind it?

Players celebrate deal between Sony and Microsoft as the end of the console war – but what is behind it?

Players worldwide are pleased that tech giants Sony (PS4) and Microsoft (Xbox One) are planning a strategic partnership. They see this as an end to the console war. Analysts view it soberly: They believe that the alliance is based on respect for Amazon and Google.

This was the surprising news: Yesterday, Sony and Microsoft announced that they have signed a joint declaration of intent and want to cooperate in many fields:

  • in cloud technology
  • in semiconductors
  • in image sensors
  • in streaming services and data centers
  • and in artificial intelligence

Sony will use Microsoft’s cloud technology, Azure, in the future.

PS4 Xbox Crossplay3
When Sony gave in on crossplay in Fortnite, a relaxation became apparent.

An End to the Console War

This is how players see it: There were many reactions to the news. The players received the news positively.

  • Readers on MeinMMO discuss that the console war is now ending. The petty war between fans of PS4 and Xbox One would lead to nothing.
  • MeinMMO reader Marcus Geißler says he is looking forward to when in one or two years Final Fantasy XIV will be released on Xbox One. The MMORPG’s refusal by Sony for crossplay has so far prevented a port to Microsoft’s console.
  • MeinMMO reader Melon Tropic says: “That I can still experience this. Incredible!”
  • Many readers hope for crossplay in current or upcoming titles like Destiny 3.
  • There are also many positive reactions in the Facebook comments on MeinMMO.

What do analysts say? Analysts and observers see the alliance between Sony and Xbox One as less of an “end to the console war”; for them, it is a partnership that brings strategic benefits to both companies:

  • Sony gains access to better technology – they were at risk of being overshadowed by Google in the concert of the giants, as Sony lacks the technology to compete in streaming.
  • Microsoft has gained a strong customer in Sony, binding them to their service offerings in the cloud and server services – the danger for Microsoft without the deal, analysts saw, was that Sony might turn to Amazon’s servers, the largest cloud rival for Microsoft.
Sony-Microsoft-Deal
Kenichiro Yoshida, President and CEO, Sony Corporation (left), and Satya Nadella, CEO, Microsoft. Image source: Microsoft

Observers therefore think that the “old guard,” Sony and Microsoft, are joining forces and overcoming their differences between Xbox and PlayStation in order to better prepare for the attack from the “new players” Amazon and Google, which they expect in the coming years. And then there’s also Nvidia, who is already preparing with their own cloud service “GeForce Now.”

Venturebeat quotes analyst Piers Harding-Rolls. According to him, the deal shows that Microsoft can see beyond just Xbox against PlayStation.

Microsoft is building a complete cloud solution for the gaming industry. With Azure, Microsoft will aggressively seek partnerships. The deal with Sony shows that significant progress is being made.

More on the topic
Sony and Microsoft collaborate – Is it against Google and Stadia?
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Source(s): venturebeat, the verge, reddit
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