PlayStation Team Caught Off Guard By Sony, Microsoft Deal

Sheri Evans
May 22, 2019

Following on Microsoft and Sony's surprising announcement of a cloud gaming partnership last week, Bloomberg has a bit of behind-the-scenes analysis that uses unnamed insider sources to discuss how the deal came about.

The newly inked deal reveals plans for the two gaming giants to co-develop game streaming technology and host PlayStation content and online services on Azure's cloud platform.

Bloomberg reports that negotiations for this particular agreement began over a year ago and were handled mainly by Sony's senior management in Tokyo and, "largely without the involvement of the PlayStation unit".

This means that when the collaboration was announced publicly last week, most of Sony's own console gaming team would have been hearing about it the same time you or I did.

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PlayStation Now, Sony Interactive Entertainment's On-Demand game service is out now with over 750 games for $19.99/month or $9.99/year. Asymmetric Advisors strategist Amir Anvarzadeh said, "Sony feels threatened by this trend and the mighty Google, and has made a decision to leave its network infrastructure build-up to Microsoft".

Sony CEO and President Kenichiro Yoshida's statement following the announcement of the collaboration certainly indicates that the adjust to change is indeed underway. Investors are rewarding Sony for its forward-thinking decision as well as the many structural changes that preceded it, such as moving some of the more staunch PlayStation Now staff to other divisions to make way for a more collaborative future for the business.

That's the word straight from the company itself, as it showed off a sneak peak at what we're expecting to be called the PlayStation 5 during a corporate strategy presentation. The report also suggests that this partnership exists due to Sony's incapability of providing their own longstanding Cloud service.

The company has also set up PlayStation Productions to oversee the adaptation of its games to film and television, so much continues brewing in the world of PlayStation. For the record, Sony's gaming division is also responsible for bringing in more than a third of the brand's total income, which is why many feel that they should've been consulted first.

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