"Negotiations with Microsoft began past 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", Bloomberg reported.
Last week, Microsoft and Sony made the unexpected announcement that they were laying the groundwork for a future partnership that could unite PlayStation and Xbox in some way. "Managers had to calm workers and assure them that plans for the company's next-generation console weren't affected".
Despite Sony spending several years investing in its own proprietary cloud services, the company ultimately chose a third party vendor to help power its streaming and, to some extent, cloud gaming future.
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Uber's share price has fallen another 8.5% amid wider stock market turmoil, as the trade war between the U.S. and China escalates. Beijing's retaliation will infuriate the US President, who had warned his Chinese counterpart against raising tariffs.
Bloomberg reports that Sony first approached Amazon - who is also reportedly working on a gaming platform - to further its cloud gaming plans.
Hopefully, more details about the Sony and Microsoft collaboration will begin rolling out soon.
According to Bloomberg the first time that numerous PlayStation staff heard about the deal was when it was public announced. Asymmetric Advisors strategist Amir Anvarzadeh said, "Sony feels threatened by this trend and the mighty Google, and has chose to leave its network infrastructure build-up to Microsoft". Sony will be utilizing Microsoft's cloud service, which makes me question what the PlayStation creator is bringing to the table. In the near term, Microsoft and Sony stay in lock-step against new competitors to the gaming market such as Amazon and Google and force game developers to choose where to put invest their resources. Amazon is planning to launch its own cloud-based gaming service soon, according to a January report from The Information. Perhaps even extending to using something like Microsoft's Project xCloud streaming technology for the PlayStation 5's eventual cloud-streaming capabilities.