Sony and Microsoft have announced that they will be partnering to optimize and advance direct-to-consumer entertainment products and AI technology. Included in the memorandum of understanding, Sony and Microsoft will specifically work to re-evaluate current cloud capabilities within Microsoft Azure, and expand future cloud solutions. The main goal is to make Microsoft Azure compatible with Sonys game and content-streaming services.

The partnership also aims to put more focus on semiconductors and AI, including the potential joint development of intelligent image sensor solutions. Sony plans to combine its image sensors with Microsoft’s Azure AI technology throughout the cloud and edge platforms. Both companies also want to integrate Microsoft’s AI platform into Sony’s products and technology, giving the consumer a better AI experience.

“Sony is a creative entertainment company with a solid foundation of technology. We collaborate closely with a multitude of content creators that capture the imagination of people around the world, and through our cutting-edge technology, we provide the tools to bring their dreams and vision to reality,” said Kenichiro Yoshida, president and CEO of Sony. “PlayStation itself came about through the integration of creativity and technology. Our mission is to seamlessly evolve this platform as one that continues to deliver the best and most immersive entertainment experiences, together with a cloud environment that ensures the best possible experience, anytime, anywhere.

“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. I believe that our joint development of future cloud solutions will contribute greatly to the advancement of interactive content. Additionally, I hope that in the areas of semiconductors and AI, leveraging each company’s cutting-edge technology in a mutually complementary way will lead to the creation of new value for society,” continued Yoshida.

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