Sony and Microsoft partner up to take on Google Stadia

Ruben Fields
May 22, 2019

Bloomberg reports that negotiations for this particular agreement began over a year ago and were handled mainly by Sony's senior management in Tokyo and, "largely without the involvement of the PlayStation unit". Despite the somewhat dry corporate title, these meetings are hugely exciting as they're when Sony lays bare its plans for the next financial year and, in news that will no doubt get loyal PlayStation gamers salivating, juicy details about the PS5 console's insane power and performance were brimming in the presentation.

Microsoft's Azure cloud tech will seemingly also form the backbone of another platform holder's streaming service.

According to Bloomberg the first time that numerous PlayStation staff heard about the deal was when it was public announced.

While Ryan wasn't ready to share key details on launch date, price point, game library, or "user experience" for the next PlayStation, he did say the company was "completely focused" on getting those details right this time around. 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. "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.

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As a result, shares of European semiconductor companies have fallen, dragging down European stock markets with them. Rubio added that for Huawei there are 'real questions now about how they can survive this'.

Last week, Sony and Microsoft surprised the gaming community by announcing a strategic partnership where they will work together on cloud technology.

We've allegedly had our first look at what Sony's next-generation PlayStation console will be capable of doing - and, unfortunately, what we saw didn't show us much of anything except that the PS5 will be able to run PS4 games very well.

The problem is that PlayStation reportedly can't keep up with cloud gaming.

Long term, though, analysts suggest things are less certain. Price-to-performance is always a key factor in a console's success, and so far it's hard to say how Sony will manage to keep the cost attractive and the product financially viable, given the guts it's purporting to have.

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