Sony and Microsoft will partner on cloud, AI, and semiconductors
Sony and Microsoft have agreed to work together on cloud and AI technologies. AI and cloud are increasingly vital technologies, and Sony isn’t exactly considered a leader in either. It’s easy to see what Sony is getting out of the partnership, but less so what Microsoft sees in the collaboration.
Microsoft and Sony are each other’s biggest competitor in gaming space. Gaming is shifting towards cloud streaming, shown by Google Stadia and Microsoft’s own x-Cloud, and Sony was expected to struggle in this area. Sony was among the first to launch a game streaming platform with PlayStation Now, but it suffered from bad quality and high latency. Unlike Microsoft and Google, cloud players, the company don’t have such a large global infrastructure to rely on.
The two companies will joint development of future cloud solutions in Microsoft to support their respective game and content streaming services. As part of the agreement, Sony will use Microsoft cloud solution Azure. PlayStation existing game and streaming services will use Azure in future.
Microsoft will gain some profit from this, but if the company wanted to be ruthless, it probably could have shut Sony out of the market and contended with Google’s emergence. Microsoft has established franchises, studios, and partners in the gaming market. Google is yet to prove itself, which could have put Xbox in a substantial lead.
Sony arguably has the strongest, most recognizable franchises in gaming industry. the possibility partnership is to combine those franchises, with Microsoft’s technology, in a bid to off competition from Google. Earlier this year, Microsoft’s gaming boss Phil Spencer promised Xbox will be Big at this year’s conference which Sony will be absent from. A lot more will be revealed about the company’s gaming strategy then, so we’ll keep you posted with any updates.
Also Sony and Microsoft will also be partnering on AI. This will include the potential joint development of new image sensor solutions. The companies aim to provide capabilities for enterprise customers through integrating sony image sensors with Microsoft AI technology in a hybrid manner across cloud and edge. Both parties also plan to incorporate Microsoft AI platform and tools in Sony products, to provide highly performed and user-friendly AI experiences.