Microsoft Deal Was A Surprise To Us — Sony PlayStation

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PlayStation earns approximately a third of Sony's profits but without its own powerful cloud computing service and data centres, it wouldn't have kept up with Microsoft and Google's upcoming Stadia platform.

When Sony and Microsoft announced their partnership last week, the news came as a surprise to many in the industry. In addition, the two companies will explore the use of current Microsoft Azure datacenter-based solutions for Sony's game and content-streaming services.

Mochizuki further translated what was being spoken in Japanese, with phrases such as "to ensure PlayStation will remain as the best place to play, SIE to work on keeping and improving relationships with outside game developers", and "in explaining PlayStation's seamless feature, the company used the phrase "anytime, anywhere, without disconnections".

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.

Mobile gaming is at the center of growth in gaming across the world and both Apple and Google want to establish an early lead in this segment.

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It seems the public wasn't alone in being blindsided by news that Sony and Microsoft are teaming up for cloud gaming technology.

This makes a lot of sense, considering the relationship the two companies have been enjoying as of late, but it also makes business sense. As such, it is believed that Sony Chief Executive Officer Kenichiro Yoshida is being forced to collaborate with Microsoft instead of adding to the competitor pile.

"Sony has always been a leader in both entertainment and technology, and the collaboration we announced today builds on this history of innovation", said Satya Nadella, CEO of Microsoft.

Unsurprisingly, many staff members within the division were caught off-guard, with some voicing out concern for their future in the company over the new deal.

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