Is this because of google?
MS & Sony are like "lets work together to get this streaming thing working right,... before google comes in and bullies us"

Hmmm.
Maybe Stadia?
Maybe XB service(s) on PS devices that somehow makes sense for PS?
Maybe MS is somehow helping PS with cloud services in exchange for help with VR?
Maybe Navi is truly in someway exclusive to PS and MS is offering cloud services so they can use Navi in XB hardware?

I mean, nothing here indicates their distinct gaming platforms will cease to exist in competition with each other for console market.
Although if PSN is hosted on MS servers, kind of hard to keep up the "we can't let our data get in hands of MS" line re: cross-play.
Really not clear what usage is being considered re: Sony's camera sensors...
Shared standard platform for VR/AR ? Nothing to do with games at all, but just PC/smartphone imagery/analysis via cloud?

Sony: Walking like usual
Microsoft: (tsundere face)
Sony: So what?? hold my hand , don't be ashamed
Microsoft: Baka!! Baka!! (while holding Sony hand)

Nintendo: Nani the fuck !?

"By integrating Sony’s cutting-edge image sensors with Microsoft’s Azure AI technology "

So Sony will able to censor more games , Yucks 

Joke, LOL 

Well they are not beating anyone, both of them are just hungry for money and market share.

It's like every anime plot, all race and country must unite to prepare for even bigger threat which is a powerful alien "Google Stadia"  

This actually makes allot of sense for Sony... Rather than invest Billions in building-out an expensive cloud service that will only be used by their gaming division... Leverage one of the big Three's (Google, Amazon, Microsoft) efforts instead who have done the hard work.

The cloud isn't getting any smaller... Plus this should relieve some pressures on their slower Playstation Network too.

This kinda tells the story.  Microsoft is all about their Azure Cloud platform.  A little IP trade here, a little buy-in for some tech there, bam, Partnership.  They can both still offer their own separate solutions and rake it in.  Digital has already surpassed physical.  Next up streaming surpassing download.

I see this less about being scared of Google so much as trying to cut costs.  We are still gonna get sucked into their separate silos, just like video/PC game content holders are trying to sick us into their separate silos.  In the next 10 years don't be surprised by how many subscriptions to things you have just to be able to enjoy the entertainment you want.

We actually need another info on how Sony choose working with Microsoft instead of Amazon and other company. Hell even Google is not ot of the question either. All of the cloud company are great , it's still mind boggling how this partnership came and why Microsoft Azure?