Microsoft and Sony have formed a partnership on video games streaming, despite being fierce competitors.
It is expected Sony will use Microsoft’s Azure cloud service to host its upcoming PlayStation streaming service.
Microsoft has been trialing a streaming offer of its own, under its Xbox brand.
The firms said they would also work together on semiconductors and artificial intelligence applications.
“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,” said Kenichio Yoshida, Sony’s chief executive.
“I believe that our joint development of future cloud solutions will contribute greatly to the advancement of interactive content.”
Microsoft’s chief executive, Satya Nadella, said: “Sony has always been a leader in both entertainment and technology, and the collaboration we announced today builds on this history of innovation.”