Reaction Paper Sample
Reaction Paper Sample
Sony and Microsoft exploring the use of current Microsoft Azure datacenter-based solutions
for Sony's game and content-streaming services seems like a slow setup to share technologies and
resources to make the future of console gaming strictly a cloud-based one. It is a strategic alliance for
the two companies combine some of their resources and capabilities to create a mutual competitive
advantage. It is a cooperative strategy innovation to enhance customer experiences in their direct-to-
consumer entertainment platforms and AI solutions.
The joint venture in which Sony and Microsoft resources and capabilities support their
respective game and content-streaming services seem to be beneficial with one another. Sony is a
creative entertainment company with a solid foundation of technology and has its own business model
for its game streaming service. In this Microsoft could benefit in the area by collaborating with Sony.
The two companies explore the use of current Microsoft Azure datacenter-based solutions for Sony's
game and content-streaming services. On the other hand, Azure is part of Microsoft's robust game
developer toolkit, which includes PlayFab, a complete backend platform for multiplayer games—and
PlayFab supports all major devices, including PC, Xbox, and PlayStation, which could also be beneficial
for Sony. It is a horizontal complementary strategic alliance for the two company has agreed to
combine their resources and skills to create value in the same stage of the value chain. Focusing on
long-term product development.
Sony and Microsoft cooperative strategy is a way to unite in the face of new competitors. It is a
strategy to meet competitive challenges from other competitors, gain access to complementary
resources and learn new business techniques. Additionally, trust is an important aspect in the success
of such cooperative strategy. As Nelius (2019), Sony and Microsoft have expressed interest in exploring
a joint venture, but since they have not actually committed to anything real on paper and haven't
actually signed any legal paperwork, just a 'memorandum of understanding, they can back out at
anytime. Sony and Microsoft are competitors that requires a great deal of trust for they are in the
same tech industry. I can say that there is a grade level of trust given by each company in order to
develop with their weaknesses and at the same time innovate in their direct-to-consumer
entertainment platforms and AI solutions. Indeed both company maintains market leadership in the
industry that they are in and continuous to innovate to be innovative in the market.