Caused a bit of a hubbub.
So that deal between Sony and Microsoft last week was kind of a big deal. But there was one aspect to it that was less than ideal for Sony, in a way. To be specific, the deal actually caught Sony’s PlayStation team flat-footed. Mostly due to the fact that Sony didn’t really loop them into the negotiations. Per Bloomberg’s report:
Negotiations with Microsoft began last year and were handled directly by Sony’s senior management in Tokyo, largely without the involvement of the PlayStation unit, according to people familiar with the matter.
Staff at the gaming division were caught off-guard by the news. Managers had to calm workers and assure them that plans for the company’s next-generation console weren’t affected, said the people, asking not to be identified discussing private matters.
Negotiations between the two started in 2018, according to the report. Before that, Sony attempted to partner with Amazon on cloud gaming, but both companies couldn’t reconcile the business side of things. Sony then moved on to negotiating with Microsoft. That said, Sony still has business with Amazon; Amazon Web Services Computing platform is what PSN runs on.
Sony was driven to find a partner for these services due to the looming Cloud Gaming push. In particular, with the potential threat of Google Stadia on the horizon, they’re hedging their bets.
Sony feels threatened by this trend and the mighty Google, and has decided to leave its network infrastructure build-up to Microsoft. Why would they sleep with the enemy unless they feel threatened?
Asymmetric Advisors strategist Amir Anvarzadeh, speaking to Bloomberg.
Source: Gamespot
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