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

The Xbox unit continues to churn out games and consoles but is now increasing focus on ways to sell more cloud software

The Xbox unit continues to churn out games and consoles but is now increasing focus on ways to sell more cloud software

During a Sony presentation, the company shared a look at its official comparison that gives us a look at how the next-gen PlayStation console compares to the PlayStation 4 Pro. For almost two decades, the Japanese console maker has contended with software company's Xbox division in the video game console market.

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

Gaming is the next big growth segment for technology companies and with a new partnership, Sony and Microsoft have officially acknowledged it. Microsoft recently announced that they would be teaming up with Sony for the next-gen consoles' cloud streaming abilities.

While Sony offered few specific new details about the PS5, it did say it will bring "completely transformative and immersive gaming experiences", adding that the two keywords for the future direction of PlayStation were "immersive" and "seamless".

Many analysts agree that it is a positive forward-thinking approach for Sony, as cloud gaming isn't ready for global rollout yet but prepares the company for if/when consoles become obsolete.

As many may have guessed, the success of Microsoft's cloud service ensures it a spot among other leading companies in this space, such as Amazon and Google.

But, Asymmetric Advisors strategist Amir Anvarzadeh has a different take.

Notably, the data servers behind Sony's PS Network are now run by Amazon Web Services, but according to a person familiar with the matter, Sony and Amazon couldn't agree on commercial terms for deeper collaboration on cloud gaming when they met a year ago.

When the two hardware giants began negotiating in 2018, the Japanese company's senior management out of Tokyo led the charge. The limitations of PS Now has forced Sony to seek a collaborative effort, and they've obviously concluded that Microsoft's Azure technology is the better bet.

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