Google has had its fair share of failed projects (are you reading this on your Google Glass headset? Didn’t think so), but Microsoft and Sony are taking the threat of the web titan's Stadia platform very seriously indeed.

Google is working on a new gaming service that seamlessly streams AAA video games across multiple devices and screens, without the need for discs or even a console.

The launch has certainly spooked Microsoft and Sony, who agreed to put their fierce rivalry aside to strike a landmark deal. In the agreement, Sony is expected to use Microsoft’s Azure cloud platform to host its own upcoming streaming service.

Microsoft has been trialling the technology for some time, but now the rivals will work together to advance the service. Sony’s PS Now streaming subscription offers access to the PlayStation back catalogue, but the company has not yet made new games available.

"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.”

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