No wonder Sony has made an alliance with Microsoft. His position is impossible to make up for the competition

microsoft playstation

Increasingly, it turns out that the cyberpunk fantasies most accurately predicted the future. Today, to be a big player in the IT industry, you need to build a cloud computing. And very few companies can afford such a thing.

This message probably surprised everyone. Microsoft and Sony have established a strategic partnership under which, among other things, the Japanese company will build PlayStation services on services hosted by Azure. Alliances of companies that compete with each other in certain specific sectors of the market are nothing new. Samsung manufactures displays for iPhones, AMD provides Intel with GPUs for some of its processors, and so on.

For Sony, the alliance with Microsoft is a bit less pleasant. The company starts cooperation with the owner of the Xbox brand as if out of necessity. The video games market is increasingly based on online services, and Sony not only does not have the infrastructure to do so, but it is also rather unable to catch up. Amazon and Microsoft are light years ahead of the Japanese giant of electronic entertainment discussed here. And in truth, also against most other electronics-related companies.

Even if Xbox loses, Microsoft will win anyway.

For many years, Microsoft's shareholders questioned the reasonableness of running an Xbox at Microsoft. Probably, all investments made in it from the beginning of its existence have not yet been returned. Xbox is still at the far third place on the gaming console market, being regardless of the generation of these devices far behind Sony and Nintendo (by analyzing trends, Switch is likely to chase and the current generation of Xbox One). In addition, this Xbox on average fits Microsoft's productive productivity. Why maintain it?

Microsoft, however, consistently invested in the development of the Xbox, that department even managed to change the company's president into a very pragmatic and devoid of sentiments Nadella. The translations were different: "games help us develop artificial intelligence", "are important for education and development", "stimulate the development of other IT products" and so on. By the way, however, the company was still learning urgently. And built relationships with the most important players in the gaming industry.

As a result, thanks to Microsoft, Microsoft has become one of the leading authorities and innovators in the field of optimization of 3D graphics (eg due to the development of DirectX API), network traffic optimization for very low latency (thanks to Xbox Live), and also, how few companies understand the needs of game developers (providing them with the appropriate SDK for Xbox and Windows, and designing with them their future versions - working with both their own and external development studios).

Now let's combine this knowledge and experience with the "cloud supercomputer" that Azure is.

The knowledge gained by three generations of Xbox consoles - as well as decades of experience in building DirectX for Windows - in combination with being the operator of one of the leading and largest cloud computing in the world puts Microsoft in a unique position on the market.

It turns out that many years of investing in Xbox (and probably paying for it) is not only a hobby project , but a strategy that increases Microsoft's chances in the fight for IT domination. Which company has the knowledge and experience to create a cloud-oriented cloud? One that will ensure efficient data centers that stream remotely processed 3D graphics in terms of both speed and energy consumption? At low latency to eliminate both the so-called input lag and latency connections between players in multiplayer games?

DirectX Raytracing

No wonder Sony turned to Microsoft. I expect a similar move for Nintendo, both companies have been cooperating surprisingly close to providing digital content for the Switch console for some time. The unique position Microsoft has worked for for many years is not unmatched by competitors. The problem is that there are terrifyingly few of them.

Google is already investing in the cloud for Stadia players, and Amazon - the owner of Twitch - is suspected of similar intentions. Will anyone join this group yet? Maybe Facebook, maybe also Nvidia or Dell. Anyone else? Although the right question should be: is anyone else able?

The dominance of information giants is a phenomenon that will not only affect the gaming industry.

Consider some of your favorite digital services. Netflix? Spotify? Slack? Endomondo? Almost every time it will turn out to be an Amazon, Microsoft or Google client. Young companies or those operating in relatively small niches of the entire digital services market are not able to build their own data centers on a global scale, they go beyond their financial capabilities. Dependence on IT giants will only grow, as will their power and impact on the market.

Unfortunately, this suggests that the future of digital information exchange - regardless of whether we are talking about document circulation systems in companies or services that allow us to play together in battle royale - will be shaped by a few entities. Huge corporations with an unprecedented impact on our entire reality.

Sony is just one of many victims of this great transformation of the industry - even if it once again wins competition with Xbox, it will end up making Microsoft all the more. Wherever else you earn Amazon, Facebook or Google. What about the rest? Condemned to sharing profits and market control with these few corporate giants. The cyberpunk reality ceases to be a fiction created by the authors of a science-fiction novel. It's a bit scary.



No wonder Sony has made an alliance with Microsoft. His position is impossible to make up for the competition

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