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Microsoft and Sony team up to transform cloud gaming

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We never thought we’d see the day. Microsoft and Sony have reportedly put their rivalry aside to collaborate on a potentially huge new gaming sector dubbed ‘the cloud’.

The console wars are far from over, but Microsoft and Sony have signed a memorandum of understanding (MOU) which underlines the start of a strategic partnership to focus on the developing of content-streaming services.

As part of this agreement, Sony will continue to use Microsoft’s Azure servers and data centres for its own game and streaming services. That presumably includes PlayStation Now – Sony’s game-streaming service launched in 2014 (after the 2012 acquisition of streaming corporation Gaikai) – and PlayStation Vue, Sony’s internet-based alternative to cable TV.

Microsoft are planning to utilise Azure as part of their own Project xCloud service for game streaming, which could play into the split hardware plan the company alluded to at E3 2018. They’ve essentially outlined the creation of a new, high-end console engineered to stream gaming content – also capable of running on all sorts of other devices.

Sony and Microsoft also agreed to ‘explore collaboration in the areas of semiconductors and AI’, which is a bit more ambiguous. This statement could suggest (if you’re being overly optimistic, like me) that the two gaming giants could begin work on a line of common-class devices compatible with both consoles… just imagine a cross-console 4K VR headset.

Unfortunately, there’s little chance that this joint effort represents some kind of new, unified console service. Sony are neck-deep in developing the PS5, while Microsoft are preparing for the unveiling of Project Scarlett next month. And you can bet they’ll both have a string of incredible console exclusives to accompany their respective launches.

One huge positive is that the likelihood of cross-play multiplayer between the PS5 and upcoming Xbox has increased tenfold with this initiative. Sony has always been reluctant to share their player ecosystem, but with hosting now handled at Microsoft, there’s no reasonable argument for why cross-play shouldn’t be enabled across both the Xbox and PlayStations of the future.

Hopefully this development leads to gaming becoming less restrictive in the near future. Fingers crossed for our gaming utopia.

Gaming Editor London, UK

I’m Jamie (He/Him), the Editor in Chief at Thred. Keeping up with gaming and revolutionary technology is my forte, but when away from my keyboard, you’ll probably find me wrapped around a large Tango ice blast at the latest mediocre horror flick. Follow me on Twitter, LinkedIn and drop me some ideas/feedback via email.

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