21 November 2019
Microsoft and Sony have partnered on new innovations to develop future cloud solutions within Microsoft Azure. The MoU that both the companies have signed, states that Sony will make use of Microsoft Azure for its own game and content-streaming services. The two companies are also committing to work together on semiconductors and AI.
While giving the power of Microsoft Azure to Sony’s existing game and content-streaming services, the two companies will also explore new possibilities from its strategic partnership. According to Microsoft, the efforts will help in building up better development platforms for the content creator community.
A big part of the tech industry is swiftly getting inclined towards the gaming sector. And, cloud gaming is the next major milestone where every company will meet. Google Stadia is a hot example that will use YouTube to push itself to the users. Google didn’t explain much while introducing its Stadia but whatever it shared sounds quite promising and definitely a threat to some existing companies who are also trying their luck in this sector. Microsoft and Sony are aware of the coming competition from Google and it seems they are buckling up for a great war to come.
The semiconductors and Artificial Intelligence collaboration will include intelligent image sensor solutions that use Azure AI, and Sony using Microsoft’s AI platform in its consumer products.
The announcement didn't mention anything further that could tell what exactly new products will come. But this unusual partnership must be having some big plans to execute soon.
Following the partnership announcement, Sony’s stock skyrocketed more than 10%. Yu Okazaki, an analyst at Nomura, wrote in a note,
The company is now able to both invest in growth and provide shareholder returns as the level of free cash flow created from businesses increases, and this gives a favorable impression.