Published: Tue, May 21, 2019
Electronics | By Kelly Massey

PlayStation's Own Staff Did Not Know About Sony's New Microsoft Deal

PlayStation's Own Staff Did Not Know About Sony's New Microsoft Deal

Following on Microsoft and Sony's surprising announcement of a cloud gaming partnership last week, Bloomberg has a bit of behind-the-scenes analysis that uses unnamed insider sources to discuss how the deal came about.

As of now, the agreement details regarding any effects on the PlayStation and Xbox businesses remain ambiguous, but the potential gains for both companies seem clear. "Managers had to calm workers and assure them that plans for the company's next-generation console weren't affected", as Bloomberg summarizes the view from inside the company.

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. There are no words from Sony on how this partnership will affect this service but since it uses Amazon Web Services so it will likely be moved to Azure servies. But Sony states that going forward it will be "leveraging the latest computing, streaming, cloud, and 5G technologies", to allow it, and the performance of PlayStation Now, to improve.

However, talks broke down as they failed to "agree on commercial terms" leading Sony to turn to one-time rival Microsoft.

Reported by Bloomberg, according to sources familiar with the matter, negotiations between Sony and Microsoft began past year and were led by Sony's senior management in Tokyo - mostly without the involvement of Sony's PlayStation branch.

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Following news of the deal, Sony jumped 9.9%, the most in 18 months and announced a record share buyback. That led Sony to reach out to other companies with more established cloud infrastructure to expand its streaming gaming footprint.

Mochizuki Tweeted out the video, saying this was "Sony's official video comparing performance of PS4 Pro vs next-gen PlayStation".

Microsoft has now positioned itself as an even bigger player in the global gaming market as it converted its one-time business rival into a business partner.

In the future, the deal could turn sour for Sony.

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