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Rivals Sony and Microsoft team up for cloud-based gaming solutions

Sony and Microsoft bury the hatchet to beat Google on cloud gaming

Xbox PlayStation Microsoft Sony cloud azure game streaming content
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Sony and Microsoft are teaming up on cloud-based gaming and A.I. solutions. This new partnership will see Sony bring its gaming and content streaming to Microsoft’s Azure cloud-computing platform.

Azure is a cloud-computing service that uses Microsoft’s data center and is available in 140 countries in 54 regions worldwide. This joint effort is aimed at developing future cloud solutions to support both companies’ gaming and content-streaming services. What could this mean for gamers? Sony and Microsoft are likely preparing for whatever Google Stadia plans to bring to the table, and aiming to produce results under the PlayStation and Xbox brands that are more robust and capable than current offerings like PlayStation Now.

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Gamers and tech enthusiasts have been keeping their eyes on the horizon, anticipating the next generation of home gaming consoles and whatever bits of information leak out prior to an official rollout. The big curveball with this wait was the announcement of Google Stadia, ta streaming platform poised to take on Nintendo, Sony, and Microsoft. Stadia aims to allow gamers to access next-gen and current-gen gaming content no matter what type of hardware they have, and to stream high-quality gaming via the internet.

We recently reported that a newly revealed Sony patent seems to be related to a PlayStation-branded competitor to Google Stadia. With this partnership revealed, we’re likely to see even more developments along this line. Does this mean that there will be a single subscription service for both Xbox and PlayStation? Not likely, but not impossible. What’s more likely is that the two will have their own respective services, which will be boosted by collaboration. The two major companies playing nice could even extend into crossplay conversations, but we’ll have to wait and see.

“PlayStation itself came about through the integration of creativity and technology,” Sony CEO Kenichiro Yoshida said in a press release. “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.”

Xbox vs. PlayStation
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Video game streaming of this kind has been attempted in various forms before, but Stadia seems like a plausible attempt at changing the landscape of home console gaming, largely due to Google’s incredible reach and established cloud-computing to power it.

Beyond cloud gaming and content streaming, the partnership also extends to A.I. and semiconductors. Sony will be sharing its cutting-edge image sensors with Microsoft’s Azure A.I. tech and Microsoft, in turn, will be working its advanced A.I. platform and tools into Sony’s consumer products. This is a monumental partnership that should be beneficial to consumers across various entertainment and productivity platforms.

In the wake of this revelation and Sony’s Thursday announcement that it would repurchase up to 4.8% of the total number of stock shares issued — worth approximately $1.82 billion, Sony’s stock skyrocketed 9.89% to levels not seen since December 2018. The buyback period will last from May 17, 2019 to March 31, 2020.

Updated May 17, 2019: Updated to include information about Sony’s stock surge. 

Charles Singletary Jr.
I'm a Birmingham, AL raised author, journalist, and gaming enthusiast currently residing in San Antonio, TX. My work has…
PlayStation Portal misunderstands remote play and cloud gaming’s appeal
A PlayStation Portal boots up.

Sony finally revealed more details about its upcoming handheld, now called PlayStation Portal, but these announcements have soured my opinion on the device rather than hyped me up for it. I enjoy cloud gaming and have used a variety of services like Google Stadia, Amazon Luna, and Xbox Cloud Gaming - across my phone and even dedicated devices like the Logitech G Cloud Gaming Handheld. Because of that, I was really excited to see what PlayStation could do as it entered the space. Unfortunately, some specific exclusions from PlayStation Portal's functionality that make it more of a remote-play device rather than a cloud gaming handheld indicate that Sony has a fundamental misunderstanding about what people would want out of a PlayStation game streaming handheld.

Namely, the device's positioning as primarily a "remote play dedicated device" and the exclusion of PlayStation Plus Premium cloud gaming compatibility drastically shrinks the number of reasons people should pick the device up. Cloud gaming and devices built around it have been around long enough to show that an inclusive approach to the number of services, games, and kinds of game streaming available is vital to success, and for a $200 handheld, PlayStation Portal seems like it's excluding way too much.
Narrowing its appeal
Remote play differs from what's more ubiquitously referred to as cloud gaming players are running the games on their own consoles rather than a third-party console or server. Still, it's a form of streaming games over a Wi-Fi connection, typically through an app on a phone or device like the Logitech G Cloud Gaming Handheld. That means you'll have to stick around your own home to use the PlayStation Portal, and its game library is limited to whatever the user owns on the console. That's limiting (it's like if Steam Deck only ran Steam Link) but does have some use cases. Still, it doesn't necessarily feel like it warrants a dedicated $200 device over a phone and a nice mobile controller like the Razer Kishi V2 or Backbone One - PlayStation Edition; haptic feedback and adaptive triggers only go so far.

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Sony’s cloud handheld, the PlayStation Portal, will only stream certain games
Astro's Playroom booting up on the PlayStation Portal.

Sony has unveiled the price for its upcoming cloud gaming handheld, as well as an official name for the device: PlayStation Portal. However, one significant caveat to its functionality might sour people's interest in the handheld: It only supports PS4 and PS5 native games that the owner purchased.
PlayStation VR2 games can't be streamed to PlayStation Portal, which does make sense. More bafflingly, though, is the fact that the PlayStation Blog post states that "games that are streamed through PlayStation Plus Premium’s cloud streaming are not supported." That means you shouldn't pick up PlayStation Portal expecting to stream some PS3 and PS4 games available through PlayStation Plus Premium to the device. That's certainly an odd omission when it's currently PlayStation's most notable cloud gaming effort.
Although Microsoft is more closely associated with cloud gaming, Sony beat it to releasing a dedicated cloud gaming device. PlayStation Portal was first teased as Project Q during May's PlayStation showcase, but now, a PlayStation Blog post more clearly explains what we can actually expect from the handheld. Most importantly, we learned that PlayStation Portal will cost $200, which puts it underneath the cost of a Nintendo Switch, Xbox Series S, and other cloud gaming devices like the Logitech G Cloud Handheld.
As for what you're getting for that price tag, it's essentially a decent screen attached to two halves of a DualSense controller. The controllers on each side share all the functionality of the DualSense, including things like haptic feedback and adaptive triggers. In-between is an 8-inch LCD screen that streams games over Wi-Fi at up to a 1080p resolution and 60 frames per second. All in all, that's fairly solid for a cloud gaming handheld that is this cheap.
Sony confirmed that the PlayStation Portal will have a 3.5mm audio jack, but also used the same blog post to unveil two new wireless audio options. There's the Pulse Elite wireless headset that features a retractable boom mic and a charging hanger and Pulse Explore wireless earbuds that offer similar audio quality in earbud form.
None of these products are available for preorder or have a specific release date just yet, but they are all expected to launch before the end of the year.

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Microsoft gives Activision Blizzard cloud gaming rights to Ubisoft
Microsoft's Xbox Cloud Gaming Service Enters Beta This Week

Microsoft announced its intention to grant Ubisoft, the publisher behind series like Assassin's Creed and Far Cry, the cloud streaming rights for Activision Blizzard titles if Microsoft's acquisition of the Call of Duty publisher goes through.
This deal was made in order to appease the U.K.'s Competition and Markets Authority (CMA). Microsoft has not had an easy time trying to acquire Activision Blizzard as it has run into heavy resistance from regulatory bodies like the U.S. Federal Trade Commission (FTC) and the U.K.'s CMA. The CMA's complaints centered around the potential monopoly Microsoft could have on cloud gaming if the deal were to go through. There was speculation that Microsoft would divest its U.K. cloud gaming efforts to appease the CMA, but it has now presented this new plan that would technically make it give up control of Activision Blizzard game-streaming rights worldwide for the next 15 years.
In a blog post, Microsoft President Brad Smith explainsed that if the Activision Blizzard acquisition happens, Microsoft will give "cloud streaming rights for all current and new Activision Blizzard PC and console games released over the next 15 years" in perpetuity following a one-off payment.
Essentially, Ubisoft will be the one deciding which cloud gaming platforms and services to put Activision Blizzard games on, not Microsoft. Smith claims that this means "Microsoft will not be in a position either to release Activision Blizzard games exclusively on its own cloud streaming service -- Xbox Cloud Gaming -- or to exclusively control the licensing terms of Activision Blizzard games for rival services," and that Ubisoft will allow them to honor existing agreements with companies like Nvidia. 

Ubisoft has been cloud gaming friendly over the past several years, eagerly putting its games on services like Google Stadia and Amazon Luna. With this deal, Ubisoft says it plans to bring Activision Blizzard games to its Ubisoft+ subscription service. Activision Blizzard CEO Bobby Kotick also commented on the deal, saying that he approves of the deal, but that "nothing substantially changes with the addition of this divestiture" for Activision Blizzard and its investors.
The current deadline for Microsoft's Activision Blizzard acquisition is October 18.

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