Microsoft and Sony are announcing a partnership that will allow the two companies partner on cloud-based gaming services. All of Sony’s existing game and content-streaming services will now be powered by Microsoft Azure.

In a recent statement, Microsoft said,

“The two companies will explore joint development of future cloud solutions in Microsoft Azure to support their respective game and content-streaming services. These efforts will also include building better development platforms for the content creator community.”

Sony and Microsoft are planning to partner on future services aimed at creators and the gaming community. The two companies say they will release more information on the collaboration in the coming weeks. This partnership will create a stronger cloud gaming platform that will most likely be at the detriment of their main rival, Amazon.

Apart from the partnership on cloud gaming and content-streaming, both companies will also collaborate on artificial intelligence (AI) and semiconductors. We expect this to include intelligent image sensor solutions that use Azure AI. Sony will also be using Microsoft’s AI platform in its consumer products.

Microsoft’s CEO Satya Nadella said,

“Sony has always been a leader in both entertainment and technology. The collaboration we announced today builds on this history of innovation. Our partnership brings the power of Azure and Azure AI to Sony to deliver new gaming and entertainment experiences for customers.”

This means that Google’s new online game streaming service will not be hosting Sony’s cloud services. Earlier this year, Google unveiled its Stadia game streaming service, which it will use YouTube to market to the public. Stadia seems to be the biggest competition for Microsoft and Sony. This latest collaboration will put Sony in a better position to compete with Google.

Google’s Stadia will steam on the cloud to Chromecast, Chrome browser and Pixel devices. Even though Sony already has a cloud gaming service, Microsoft’s xCloud gaming service will make for a better force. It is set for release later in 2019.