The two giant tech companies Sony (PlayStation 4) and Microsoft (Xbox One) have surprisingly announced a strategic partnership to collaborate. They want to jointly develop new technology for artificial intelligence and the cloud. They are presumably pooling resources against Google’s streaming service “Stadia.”
Is this a joke? No, it is an official announcement from Microsoft and Sony.
This comes quite unexpectedly on Thursday evening and causes a stir.
Kenichiro Yoshida, President and CEO, Sony Corporation (left), and Satya Nadella, CEO, Microsoft. Image source: Microsoft
What is the goal of the two companies? It is said that Sony and Microsoft would team up to find solutions for customers to have better experiences with
- their entertainment platforms – likely referring to consoles or streaming services
- and solutions related to artificial intelligence
It is said that they are exploring a strategic collaboration and plan to work together on “cloud-based solutions” for gaming experiences. This likely refers to a streaming service.
What exactly do the companies want to do? Sony and Microsoft have signed a memorandum of understanding.
In detail, it says that they plan opportunities for Microsoft Azure to support the streaming services of the respective gaming and content services.
Furthermore, they want to collaborate on semiconductors and artificial intelligence. And they aim to provide better platforms for content creators – such as YouTubers or Twitch streamers.
In all these areas, Sony and Microsoft apparently want to pool their resources. They want to leverage the strengths of each company:
- Sony provides superior technology in image sensors and semiconductors
- while Microsoft seems to be advanced in cloud and AI – thus, they plan to use Microsoft Azure’s data centers for Sony’s games and streaming services
This is what the companies say: There are then lofty words in which both companies praise themselves and each other. Kenichiro Yoshida, Sony’s president, says: “I believe that our joint development efforts will contribute to future solutions in the cloud and advance technology.”
The CEO of Microsoft, Satya Nadella, emphasizes that they are bringing the power of Azure and Azure AI to Sony to enhance the gaming experience for customers. Sony has always been one of the leading forces in technology and entertainment, and this current collaboration builds on a history of innovation.
Further information will be shared in the future.
What is behind this? This is surprising news. It can only be understood as a reaction to the Google service “Stadia.”
Google presented a new streaming platform in March 2019. Already in the presentation, it was clear that Google Stadia wants to position itself as competition against PS4 Pro and Xbox One X.
Apparently, Sony and Microsoft respect the tech power behind Google and are expecting advantages from collaborating.
Many “buzzwords” in the statements from Microsoft and Sony, such as “better platform for content creators,” were also heard in Stadia’s presentation.
However, there is not a word about Google in the companies’ statements.
Does this have direct effects? At the moment, everyone is surprised. But initial observers say (via engadget), it could now lead to a breakthrough in crossplay. Here, Sony had long been reluctant.
Furthermore, it could solve problems that both companies face: Sony suffers from slower download speeds, while Microsoft has weaknesses in image sensors.
Initial reactions and background of this deal can be found here:
