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Rivals Microsoft and Sony Strike Pact for Gaming, Cloud Services

Person's silhouette appears besides Microsoft's logo in office buildingPerson's silhouette appears besides Microsoft's logo in office building
Microsoft is teaming up with gaming rival Sony to share cloud and artificial intelligence services.Mark Kauzlarich—Bloomberg via Getty Images

Microsoft Corp. and Sony Corp., bitter rivals in the game console market, are exploring partnerships in cloud-computing and artificial intelligence, including the use of Microsoft’s Azure for their own video and content-streaming services.

By working together, the two companies aim to provide more enhanced entertainment experiences for their customers worldwide, including building better platforms for content creators, they said in a statement Thursday. The companies also may collaborate on semiconductors, potentially working on new image sensors that would combine Sony’s image sensor technology with Microsoft’s AI tools in Azure.

While the companies have worked together in some parts of their businesses, Sony’s PlayStation and Microsoft’s Xbox compete fiercely, particularly for the attention of hard-core gamers. At the same time, as both companies face rivals such as Alphabet Inc.’s Google, Apple Inc., and Inc., Sony will want cloud horsepower to run its services. The two companies said they will share additional information in the future.

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