Published: Wed, May 22, 2019
Electronics | By Kelly Massey

New cloud partnership between Microsoft and Sony was negotiated behind PlayStation's back

New cloud partnership between Microsoft and Sony was negotiated behind PlayStation's back

According to this Bloomberg report on the partnership, which cites "people familiar with the matter", the early stages of the deal "began a year ago and were handled directly by Sony's senior management in Tokyo, largely without the involvement of the PlayStation unit". Managers reportedly had to calm PlayStation employees and "assure them that plans for the company's next-generation console weren't affected".

As for the mentions of "streaming, cloud, and 5G technologies", that also makes flawless sense for PS5, and especially so in light of recent reports that Sony has formed a partnership with Microsoft on video games streaming.

According to Bloomberg the first time that numerous PlayStation staff heard about the deal was when it was public announced.

Analysts believe Sony is feeling threatened by new players in the streaming market, such as Google with its recently announced Stadia device.

"Why would they sleep with the enemy unless they feel threatened?" said Asymmetric Advisors strategist Amir Anvarzadeh. After all, the collaboration had been in the works for over a year.

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We've allegedly had our first look at what Sony's next-generation PlayStation console will be capable of doing - and, unfortunately, what we saw didn't show us much of anything except that the PS5 will be able to run PS4 games very well.

Sony's PS5 next-generation console will offer improved cloud gaming performance and "dramatically improved graphics rendering" power. What's more, if Azure is adopted as the industry standard for cloud gaming, it could force Google out of contention and eliminate a key rival. There have been no changes in stock prices today.

Microsoft and Sony-the company's behind Xbox One and PS4 respectively-revealed this week that they have established a strategic partnership.

"Under the memorandum of understanding signed by the parties, the two companies will explore joint development of future cloud solutions in Microsoft Azure to support their respective game and content-streaming services".

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