Sony and Microsoft have announced that both companies will “collaborate on new cloud-based solutions for gaming experiences.”

This new partnership seems to have surprised a lot of people, although most gamers probably won’t be affected too much since it is really a “Joint development of future cloud solutions in Microsoft Azure to support their respective game and content-streaming services,” which the companies say will “deliver more enhanced entertainment experiences for their worldwide customers.”

Kenichiro Yoshida, president and CEO of Sony said of the new agreement, “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.”

While Satya Nadella, CEO of Microsoft, said: “Sony has always been a leader in both entertainment and technology, and the collaboration we announced today builds on this history of innovation… Our partnership brings the power of Azure and Azure AI to Sony to deliver new gaming and entertainment experiences for customers.”

So rather than building a new PSbox together, it seems the companies are working together to improve how cloud services will be brought to gamers in the future, which is perhaps great timing considering Google Stadia is just around the corner. Maybe it both companies see it as more of a threat than they are letting on?