Under the new agreement the two, which make competing gaming platforms Xbox and PlayStation, will also explore joint development on future cloud solutions in Azure that will benefit both companies.
It's hoped the partnership will improve their services while also leading to better development tools for creators.
Outside of the game’s space, the deal also sees Sony and Microsoft potentially collaborating in areas such as AI and semiconductors.
No further information was revealed, though a press release noted further details would be shared “when available”.
Future of games
“Our mission is to seamlessly evolve this platform as one that continues to deliver the best and most immersive entertainment experiences, together with a cloud environment that ensures the best possible experience, anytime, anywhere,” said Sony CEO Kenichiro Yoshida.
“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.”
Microsoft CEO Satya Nadella added: “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.”
The collaboration comes just two months after Google unveiled its upcoming cloud gaming platform Stadia.
The deal between Microsoft and Sony of course doesn't mean the two will cease to compete in the games market, but is a sign of the complexities and scale involved in running games through the cloud.