Gaming rivals Microsoft and Sony have agreed to work together on video game streaming services.

The technology giants have announced an agreement which may see Sony use Microsoft’s cloud service to host PlayStation streaming services.

Microsoft is in the process of testing a streaming service for Xbox- project xCloud aims to allow users to play Xbox games across different devices.

Sony already has a streaming platform- PlayStation Now allows players to stream games to their PlayStation 4 console or PC.

Sony and Microsoft have been rivals since 2001, when the Xbox was launched as a competitor to the Sony PlayStation.

The two companies also announced that they would explore collaboration in Artificial Intelligence (AI).

Microsoft 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.

“Our partnership brings the power of Azure and Azure AI to Sony to deliver new gaming and entertainment experiences for customers.

Sony boss Kenichiro Yoshida added:

“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.”