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Microsoft and Sony to Collaborate on Game Streaming, Chipsets and AI

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Sony Corp struck a strategic deal with Microsoft Corp on Thursday that lets Sony stream games and media using Microsoft’s cloud. The deal will also help both companies to work together in developing image sensors. The companies have agreed to stream games and content as well as provide development tools to game makers.

The news helped shares of Sony jump up to almost to 11 per cent as soon as the Asian markets opened. The Stock of Microsoft rose by 2 per cent on Thursday. With the gaming business of Sony losing some steam with its PlayStation 4(PS4) console coming to its end, the present deal is an enthusiastic welcome.

The expectation is high among market analysts to see the launch of a next-generation console by Sony in 2020 to replace the existing PS4, though there has been a drop in profit this year for the company.

The deal will help Microsoft to beef up its Azure cloud computing business, which remains the reason for its market value to rise to $1 trillion in the last month.

Sony remains the leader in the supply of camera chips for Smartphones and other devices. In a joint statement, the two major corps announced the development of new image sensor chips that will leverage artificial intelligence (AI) technology from Microsoft for customers. However, it was not specified how the chips would be brought to use.

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