Sony and Microsoft team up to develop 'game and content-streaming services'

Image credit: Microsoft

In what may be the most unexpected team-up since Archie met The Punisher, Sony and Microsoft have announced plans to form a "strategic partnership" through which they will collaborate on the development of cloud-based technology to support their game and streaming services. 

"Sony is a creative entertainment company with a solid foundation of technology. We collaborate closely with a multitude of content creators that capture the imagination of people around the world, and through our cutting-edge technology, we provide the tools to bring their dreams and vision to reality," Sony president and CEO Kenichiro Yoshida said in a statement. 

"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. I believe that our joint development of future cloud solutions will contribute greatly to the advancement of interactive content." 

The partnership at this point is strictly a memorandum of understanding, which the companies said will enable them to explore the potential use of Microsoft's Azure datacenters to support Sony's online services, as well as joint development of new hardware and AI technology. More long-term, the announcement suggests a mix of Sony's hardware—"cutting-edge image sensors" and semiconductors—and Microsoft's Azure AI and cloud technology: "The parties will explore incorporation of Microsoft’s advanced AI platform and tools in Sony consumer products, to provide highly intuitive and user-friendly AI experiences."

"Sony has always been a leader in both entertainment and technology, and the collaboration we announced today builds on this history of innovation. Our partnership brings the power of Azure and Azure AI to Sony to deliver new gaming and entertainment experiences for customers," Microsoft CEO Satya Nadella said. 

Game consoles typically fall outside our purview but the potential impact of this partnership on gaming as a whole, through advances in streaming, AI, cloud technology, and the promise of "better development platforms for the content creator community," is enormous. Predictions of the "final console generation" have been kicking around for years—Ubisoft CEO Yves Guillemot said last year that he thinks the next console generation will likely be the last—but this may be the biggest step yet toward making that outcome a reality. 

Andy Chalk
US News Lead

Andy has been gaming on PCs from the very beginning, starting as a youngster with text adventures and primitive action games on a cassette-based TRS80. From there he graduated to the glory days of Sierra Online adventures and Microprose sims, ran a local BBS, learned how to build PCs, and developed a longstanding love of RPGs, immersive sims, and shooters. He began writing videogame news in 2007 for The Escapist and somehow managed to avoid getting fired until 2014, when he joined the storied ranks of PC Gamer. He covers all aspects of the industry, from new game announcements and patch notes to legal disputes, Twitch beefs, esports, and Henry Cavill. Lots of Henry Cavill.

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