In a surprise announcement today Microsoft and Sony announced a partnership going forward to work together on cloud gaming and entertainment. Sony will also integrate Azure into their AI Semiconductor and image sensors giving Microsoft access to high quality sensors compatible with their AI and data centers going forward. While the PlayStation and Xbox brand were not specifically named, gaming was named as a category of interest that would be incorporated and leverage Azure and Microsoft's data centers in the future. There is still more information to come, but this is a partnership that could signal a major change going into the next generation.
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