Microsoft And Sony's Cloud Gaming Collaboration Caught The PlayStation Team By Surprise

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Reports indicate PlayStation employees were unaware of Sony and Microsoft partnering to improve their cloud gaming services, and were caught off guard by the announcement.

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.

Sony has already spun its 2012 purchase of streaming gaming company Gaikai into over 700,000 subscribers for its cloud-based PlayStation Now service, which launched in 2015. Sources close to the matter reportedly told Bloomberg that Sony's PlayStation division was in the dark about the partnership as well.

On the news of the monumental partnership Sony's shares ticked up 9.9% and the day accounted for the single best day in the past 18 months for the company.

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It's no secret that many companies like Amazon and Google are starting to make their game streaming services.

If streaming takes off in the gaming space - as many have predicted - it would mean that it will have to compete against Microsoft's Xbox while also paying for cloud access. "Sony feels threatened by this trend and the mighty Google, and has chose to leave its network infrastructure build-up to Microsoft", adds Asymmetric Advisors strategist Amir Anvarzadeh. This is something that Sony has said is still under development, but they've released an official video showcasing how fast the next-gen console can load a game (Spider-Man in this instance) in comparison to PS4 Pro. "We collaborate closely with a multitude of content creators that capture the imagination of people around the world, and through our cutting-edge technology, we provide the tools to bring their dreams and vision to reality", said Kenichiro Yoshida, president and CEO of Sony.

In case you missed the announcement last week, Sony and Microsoft have entered into a vague partnership on "direct-to-consumer entertainment platforms and AI solutions", one that is centered around the latter's Azure datacenter solution.

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