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Sony's Deal With Microsoft Blindsided Its Own PlayStation Team

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(Bloomberg) -- When Sony Corp. unveiled a cloud gaming pact with archrival Microsoft Corp., it surprised the industry. Perhaps no one was more shocked than employees of Sony’s PlayStation division, who have spent almost two decades fighting the U.S. software giant in the $38 billion video game console market. 

Last week, the companies announced a strategic partnership to co-develop game streaming technology and host some of PlayStation’s online services on the Redmond-based company’s Azure cloud platform. It comes after PlayStation spent seven years developing its own cloud gaming offering, with limited success.

Negotiations with Microsoft began last year and were handled directly by Sony’s senior management in Tokyo, largely without the involvement of the PlayStation unit, according to people familiar with the matter. Staff at the gaming division were caught off-guard by the news. Managers had to calm workers and assure them that plans for the company’s next-generation console weren’t affected, said the people, asking not to be identified discussing private matters.

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The company’s other online game service and main cash cow, PlayStation Network, enables multiplayer matches of games running on PlayStation 4 consoles. For now that is still hosted by the other giant of cloud computing: Amazon Web Services. Sony and Amazon held talks last year for a deeper collaboration on cloud gaming, but couldn’t agree on commercial terms, according to a person familiar with the matter. That led to Sony’s discussions with Microsoft, the person said. Amazon is currently developing its own cloud gaming service, the Information reported last year.


Much more at the link.https://www.bloomberg.com/news/articles/2019-05-19/sony-s-deal-with-microsoft-blindsided-its-own-playstation-team

I had to borrow this from Some forum I copied and paste it was too good written

Last edited by dx11332sega - on 19 May 2019

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Hopefully ppl can put aside fanboyism for a second and realise that sometimes (actually most if not always) a business deal is merely that: a business deal



Who needs console wars when you now have cloud wars



I think this was the lower level employees freaking out. I don't think SIE higher wouldn't know or maybe I'm wrong and they didn't know? but Shawn layden and others would be shocked and tweet there frustrations at twitter or something? I think its just the lower level employees freaking out



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Frankly, I see this as nothing but a positive. MS is one of the cloud giants, and is also a major player in gaming. Sony needs to partner with someone for some parts of their streaming operation. There is likely nobody better positioned than MS to deliver what Sony needs.  



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Now we know what happened with Amazon deal?



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dx11332sega said:
I think this was the lower level employees freaking out. I don't think SIE higher wouldn't know or maybe I'm wrong and they didn't know? but Shawn layden and others would be shocked and tweet there frustrations at twitter or something? I think its just the lower level employees freaking out

upper management at SIE probably had some idea, but that sounds extremely unprofessional for anyone in that position to tweet about these grievances



So, It seems we dont know how reliable this bloomberg article is ? But it might be reliable? Is kotaku or other articles trust worthy? Haven't checked this news anywhere else I'm busy reading other forum responses



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I guess it's reliable ? They keep talking about it though



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The thing is, that PS has been refusing cross play because they wanted control over thier online services as most crossplay is used via Xbox accounts.... So yes this blindsighted the