Sony and Microsoft set rivalry aside for cloud gaming alliance

Console war veterans join forces against the likes of Google and Apple

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Microsoft and Sony plan to jointly develop a cloud gaming service, though the Xbox and PlayStation will continue to compete with each other. © Reuters

HISASHI IWATO, Nikkei staff writer

TOKYO -- Sony and Microsoft, bitter rivals in the video game console wars, will team up in on-demand gaming to better compete with newcomers like Google as the industry's main battlefield looks poised to shift to the cloud, Nikkei learned Thursday.

During a recent trip to the U.S., Sony President and CEO Kenichiro Yoshida signed a memorandum of understanding with Microsoft CEO Satya Nadella on a strategic tie-up. While details have yet to be hammered out, the partnership will center on artificial intelligence and the cloud, according to an announcement by Microsoft early Friday Japan time.

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