Microsoft Corp and Sony Corp on Thursday said they struck a strategic partnership in which Sony would use Microsoft's cloud for streaming games and media and the two would work together to develop new image sensors.
The deal is in its early stages, with many specifics yet to be determined. But the owners of two major consumer interactive entertainment franchises - Microsoft's Xbox platform and Sony's PlayStation - would collaborate to stream games and content to consumers and offer game makers new development tools.
"For many years, Microsoft has been a key business partner for us, though of course the two companies have also been competing in some areas," Sony Chief Executive Kenichiro Yoshida said in a statement. "I believe that our joint development of future cloud solutions will contribute greatly to the advancement of interactive content."
The deal bolsters Microsoft's Azure cloud computing business, which helped push the Redmond, Washington-based company's market value past $1 trillion last month. It also helps Microsoft counter cloud market leader Amazon.com Inc's Amazon Web Services.