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Sony picked Microsoft cloud deal after AWS talks fell through

(Image credit: Image Credit: StockStudio / Shutterstock)

The Sony – Microsoft deal, in which the Japanese tech giant partnered with Microsoft to use Azure for its next-gen PlayStation console, came as a necessary evil, a new report from Bloomberg says.

The report states that Sony, feeling threatened by the likes of Google and other large tech companies with well-developed cloud services, had no other choice but to opt for Microsoft. It has been in talks with Amazon, whose AWS service still powers the PlayStation Network, but the two could not agree on commercial terms.

That forced the Japanese company to approach Microsoft, and it has been in talks with the Redmond giant since last year.

The agreement caught many people by surprise, including Sony's employees working on the PlayStation project, according to Bloomberg. The deal was struck by Sony's highest eschelons, which decided to keep the rest of the company in the dark about its proceedings.

PlayStation brings in a third of Sony's earnings, it was said.

The problem with cloud is simple. Faster internet speeds allow users to play games without actually having a state-of-the-art machine. They could very well just stream it from another location, and Google is betting that is the future of gaming.

However, to make that a reality, one needs a powerful cloud solution, something both Microsoft and Google already have. Sony, on the other hand, lags behind, and feels being left behind.

Those interested in learning more about the cloud should read this.

Image Credit: StockStudio / Shutterstock