Microsoft and Sony are working together for future cloud gaming ventures

E3 2019 PS5 Xbox Two

E3 2019 PS5 Xbox Two

"By integrating Sony's cutting-edge image sensors with Microsoft's Azure AI technology in a hybrid manner across cloud and edge, as well as solutions that leverage Sony's semiconductors and Microsoft cloud technology, the companies aim to provide enhanced capabilities for enterprise customers".

Microsoft Corp and Sony Corp on Thursday said they struck a strategic partnership in which Sony would use Microsoft's cloud for streaming games and media and the two would work together to develop image sensors.

The partnership isn't all one-sided though.

Kenichiro Yoshida, President and CEO, Sony Corporation and Satya Nadella, CEO, Microsoft Corporation, pose in this undated photo released by the Microsoft Corp. located in Redmond, Washington, U.S., May 16, 2019.

First, it's important to note that Microsoft and Sony haven't actually signed any legal paperwork, just a 'memorandum of understanding, ' which is the formal alternative of a gentleman's agreement-a non-binding handshake. Ideally, this partnership will reach more consumers and offer a better experience for them. Google announced in March that it would launch its Stadia cloud gaming service later this year.

Rivals Sony PlayStation and Microsoft Xbox are joining forces to bring a better gaming experience to customers. "The deal with Sony shows it is making significant progress in this ambition".

Sony recently announced during a financial conference call that PlayStation Now has reached over 700,00 subscribers, with the service having an average annual increase of over 40% when it comes to paying subscribers.

Both companies are making an effort to break into, or bolster their efforts in the courageous new world of game streaming. Engadget speculates that this may lead to the fixing of slow download speeds suffered by the PS4 somewhere down the line. Neither Sony nor Microsoft is going to commit to doing gamestreaming full-stop, as both already have consoles now in development.

Gaming company's used to fight to get the best developers working on their consoles, now the tech companies will compete to get the biggest and best content providers on their servers. Teased during the announcement, the two's unlikely collaboration is also down to an interest in the advancement of AI and semiconductor technology.

This isn't a merger, and this isn't Microsoft and Sony setting aside their competition in gaming. Streaming is coming and if you're not ready for it, then be prepared because it looks like Sony is not playing around.

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