Microsoft and Sony to develop cloud gaming together

Microsoft and Sony Electronics and will soon establish strategic partnership in the areas of electronic games based on cloud computing and artificial intelligence.


Accordingly, the two tech giants will cooperate to develop cloud solutions based on Microsoft's AI Azure to support video game services and streaming content of these corporations. Besides, the two companies are studying the possibility of combining Sony's image sensors with Azure of Microsoft.

Representative Corporate Executive Officer of Sony Corporation, Representative Corporate Executive Officer of Sony Corporation affirmed that the cooperation in developing future cloud solutions would be an important contribution to promoting interactive content.

"For many years, Microsoft has been a key business partner for us, though of course the two companies have also been competing in some areas," said Kenichio Yoshida. "I believe that our joint development of future cloud solutions will contribute greatly to the advancement of interactive content."

Meanwhile, Microsoft CEO Satya Nadella said that the partnership between the two companies would help Sony take advantage of Microsoft's Azure cloud service and Azure AI to bring new game and entertainment experiences to customers.


"Sony has always been a leader in both entertainment and technology, and the collaboration we announced today builds on this history of innovation," said Satya Nadella. "Our partnership brings the power of Azure and Azure AI to Sony to deliver new gaming and entertainment experiences for customers."

According to analysts, the partnership between Sony and Microsoft is mainly to deal with Google - a new rival to Sony and Microsoft in the field of online games. Recently, Google has launched an online game service on its Stadia cloud-computing platform.

For nearly two years, Microsoft has worked with many partners, including many third-party software makers, to sell Azure to businesses, benefiting both Microsoft and its partners. This tactic has helped the company collect $ 5 billion from cooperation contracts over the past year.


Microsoft is also speeding its cloud computing game to compete with Amazon and Google. The company is allowing GitHub users to provide their login information to access Azure. At the same time, Microsoft also helps GitHub's enterprise level to be compatible with the Microsoft Azure Active Directory service so that administrators can easily manage GitHub's use of employees. GitHub was acquired by Microsoft last year for $ 7.5 billion and could represent a variety of Microsoft public cloud services.

These two changes and many other improvements can help Microsoft's Azure cloud service to be more widely used for data storage and application support. This is very important when Amazon with Amazon Web Services (AWS) continues its leading position in the market, while Google is behind Microsoft in the cloud segment but is increasing its efforts to develop this business with cloud leader Thomas Kurian.

Amazon held 32% of the cloud market share by the end of 2018, according to Canalys. Microsoft and Google owned 13.7% and 7.6% market share respectively. In the first quarter of 2019, Amazon had $ 7.7 billion profit from AWS. Microsoft did not announce Azure's revenue, but analysts at Piper Jaffray said Azure could generate $ 3.6 billion this quarter. Microsoft said Azure sales increased 73% over the previous year.

Now, Microsoft is expanding its program to Microsoft 365, a service pack that includes Windows 10, Office 365 and Enterprise Mobility & Security. Microsoft 365 also has a cloud sales-management application that competes with Salesforce's Sales Cloud.


By: Olivia Mendoza