Sony has announced a partnership with Microsoft — which has sent Sony’s stocks soaring up to 10 percent. The collaboration means that the gaming giant will use Microsoft’s Azure cloud services for streaming games and media.

Although competitors, Sony and Microsoft are coming together for a strategic partnership. Sony plans to move its streaming games and media onto the Azure cloud services — confirming that the next wave of gaming will incorporate cloud technology. According to analysts, the partnership will probably lead the next wave of disruption.

The deal is still in its early stages, so the details are forthcoming.

Although the announcement will likely not produce much impact in the short-term, the long-term prospects seem promising. Sony’s and Microsoft’s digital infrastructure will over time be linked, with the goal being to provide high-end video games to consumers without needing to purchase expensive consoles or hardware.

Sony’s Stock Spikes

Upon hearing the news, Sony’s stocks jumped around 9.89 percent to levels not seen since December 2018.

The announcement follows another one made by the company yesterday which said that the company would be repurchasing up to 4.8 percent of its total issued shares (approx. $1.82B).

Microsoft and Sony’s Strategic Partnership

The strategic partnership between Sony and Microsoft will undoubtedly have a significant impact on their investments in emerging technologies.

Microsoft Azure already boasts a strong focus on blockchain-based innovation. Businesses can already create their own distributed ledgers through Azure cloud services. Microsoft Azure may be looking to fully decentralize in the not-so-distant future since they are already providing the tools for companies to develop, test, and deploy these systems internally.

Since Sony is closely working with Microsoft Azure, the latter’s interest in blockchain is notable. It seems inevitable that this technological insight would be shared. This would also go hand-in-hand with Sony’s own aspirations with this emerging technology, as the company seeks to implement a Digital Rights Management system on the blockchain.

Do you believe Microsoft’s Azure platform will soon become the standard for streaming in gaming? Let us know your thoughts below.