Sony and Microsoft ink key entertainment deal ahead of PS5 and next-gen Xbox launch

Sony and Microsoft are huge rivals in the gaming business, with each company set to unveil new hardware in the not too distant future. In a surprising move, the two companies have inked an entertainment-related partnership with plenty of time left to go until they release their next-gen consoles, including the PlayStation 5 and the Xbox Two.

In a joint statement for the press, Sony and Microsoft revealed they would collaborate on ‘New cloud-based solutions for gaming experiences and AI solutions’.

“The two companies will partner on new innovations to enhance customer experiences in their direct-to-consumer entertainment platforms and AI solutions,” the announcement read, without providing any specifics, but focusing on the gaming side.

The partnership also includes semiconductors, like developing new intelligent image sensors solutions that would incorporate Sony’s image sensors and Microsoft’s Azure AI tech. Resulting products would target enterprise customers rather than gamers.

“The two companies will explore joint development of future cloud solutions in Microsoft Azure to support their respective game and content-streaming services,” the announcement says, revealing that the two companies will use Microsoft Azure for Sony’s game and content-streaming services.

Sony and Microsoft’s partnership is all the more interesting, considering what’s been happening in the gaming universe lately. Google unveiled its Stadia game streaming platform that would compete directly against PS5 and Xbox Two. Similarly, Apple launched its own gaming-centric platform, Apple Arcade. Even Netflix teased that it’ll make gaming-related announcements soon.

While Google, Apple, and others are yet to “kill” traditional gaming consoles, the new Sony-Microsoft deal might help the two gaming giants better compete against whatever future challenges lie ahead.