The sky is falling. Hell has actually frozen over. So I suppose it only makes good sense that long time gaming competitors Sony and Microsoft(who’s likewise getting closer to Nintendo) announced that they’re interacting to enhance each other’s items.

However that doesn’t imply you’ll be playing on a PlayStationBox (or XBoxStation?) console whenever soon. Instead, the extensive collaboration has to do with creating new cloud and AI innovations– namely through using the Microsoft Azure cloud computing platform. Both business will jointly develop brand-new cloud services with Azure, which would benefit their video gaming and home entertainment services.

Sony will utilize Azure’s information centers for its gaming and streaming services too. For enterprise consumers, Microsoft and Sony will work on semiconductor chips and AI, combining Sony-made image sensing units with Azure’s AI tech. According to journalism release, the objective of the collaboration is to “deliver more improved home entertainment experiences for their around the world consumers.”

The two companies signed a memorandum of understanding, a non-legal binding agreement that nevertheless suggests that they’re serious about the collaboration.

” For numerous years, Microsoft has been a crucial organisation partner for us, though naturally the two business have also been completing in some locations,” said Sony CEO Kenichiro Yoshida in a declaration. “I believe that our joint development of future cloud services will contribute considerably to the improvement of interactive content.”

Microsoft CEO Satya Nadella echoed Yoshida’s remarks.

” Sony has actually always been a leader in both home entertainment and innovation, and the collaboration we revealed today builds on this history of development,” Nadella stated in a statement. “Our collaboration brings the power of Azure and Azure AI to Sony to deliver brand-new gaming and entertainment experiences for consumers.”

Microsoft's Project xCloud lets you play Halo on a tablet.

Above: Microsoft’s Project xCloud lets you play Halo on a tablet.

Image Credit: Dean Takahashi

Cloud and streaming technologies are becoming more vital in video games, particularly with Google Stadia on the horizon. Microsoft and Sony have streaming services of their own– such as PlayStation Vue, PlayStation Now, and Job xCloud — so the collaboration may be a method to ensure that both companies can remain competitive.

In an email, IHS Markit analyst Piers Harding-Rolls said that the announcement reveals that Microsoft is believing beyond simply Xbox versus PlayStation.

” The option of partnership with Microsoft Azure is a significant advancement for the shape and competitive dynamic of the video games sector,” Harding-Rolls described. “Microsoft is building an end-to-end cloud ability to serve the video games market. Its Xbox and future cloud gaming company is only one aspect of its aspirations to grow its direct exposure to the games worth chain.

” Through Azure and its cloud-based tools and services, it intends to aggressively pursue third-party relationships in facilities, back end services, and service delivery. The handle Sony reveals it is making substantial progress in this aspiration.”