Sony employees caught off guard by Microsoft cloud partnership

Though the move is unsurprising in hindsight, many are rightly not used to seeing Microsoft and Sony team up for, well, anything.

When Sony and Microsoft announced their partnership last week, the news came as a surprise to many in the industry. The partnership isn't simply on way either as Microsoft will benefit from Sony's own advances in image-processing technology that will see the two companies share and develop new technologies. "Staff at the gaming division were caught off-guard by the news", they report, "Managers had to calm workers and assure them that plans for the company's next-generation console weren't affected, said the people, asking not to be identified discussing private matters". In the long run, Sony and Microsoft could ultimately solidify game development on Azure cloud and could also create an additional revenue stream for Microsoft's cloud business.

PlayStation Now, Sony Interactive Entertainment's On-Demand game service is out now with over 750 games for $19.99/month or $9.99/year.

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Despite Sony spending several years investing in its own proprietary cloud services, the company ultimately chose a third party vendor to help power its streaming and, to some extent, cloud gaming future. One person "familiar with the matter" told Bloomberg the two companies "couldn't agree on commercial terms" for the deal.

Negotiations between Microsoft and Sony began in 2018, a spokesperson for Sony said.

"Sony feels threatened by this trend and the mighty Google, and has made a decision to leave its network infrastructure build-up to Microsoft", said Asymmetric Advisors strategist Amir Anvarzadeh.

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Microsoft's new game-streaming service is in the works under the working title xCloud.

Microsoft CEO Satya Nadella added: "Sony has always been a leader in both entertainment and technology, and the collaboration we announced today builds on this history of innovation".

Sony's other streaming service, PlayStation Network, allows gamers to engage in multiplayer gamers on PS4 consoles and is now hosted by Amazon Web Services.

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