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Cerebralbore101 said:

What is a virtual network? What is a virtual machine? What aspect of Sony's services would this be used for? How would it be used for that aspect of Sony's services? Are you saying that this doesn't have anything to do with streaming games? 

Virtual Networks/Machines are the cloud based alternative to their physical counterparts. There are thousands of businesses that use Azure, or services like it, and they all use it for different purposes. Your question is like asking what Sony would do with a new computer: it's really up to them. 

As I mentioned before, Azure is made to replace physical hardware, and offload the costs and responsibilities to a more specialised service, one that has enough resources to deal with spikes in demand, instant response to security threats etc. Companies have found this a much more cost-effective alternative, to say, hosting their own hardware, employing IT specialists, etc.

Sony may or may not use Azure to stream games. It's doable, and definitely possible...