Microsoft Deal Was A Surprise To Us — Sony PlayStation

Kelley Robertson
May 20, 2019

Last week's big news that Sony will make use of Microsoft's cloud tech for its streaming service took many by surprise, including those at Sony's own PlayStation division, according to reports.

Bloomberg reports that when the news of the strategic partnership was released, PlayStation staff were "stunned" after spending more than twenty years battling it out with Microsoft's Xbox in the lucrative video game console market. "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". However, the two sides could not come to terms over the business side, according to a source.

"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.

PlayStation earns approximately a third of Sony's profits but without its own powerful cloud computing service and data centres, it wouldn't have kept up with Microsoft and Google's upcoming Stadia platform.

In addition, the two companies will explore the use of current Microsoft Azure datacenter-based solutions for Sony's game and content-streaming services.


This sounds like a throwback to the bad old days of Sony when the various departments barely talked to each other, one of the factors that caused Sony to undergo a massive, and very successful, restructuring over of the past few years. "Our partnership brings the power of Azure and Azure AI to Sony to deliver new gaming and entertainment experiences for customers".

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

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".

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

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