The company's Xbox chief Phil Spencer has claimed the tech giants are his division's biggest competition, rather than more "traditional" rivals like Nintendo or PlayStation's creator Sony.
He told Protocol: "When you talk about Nintendo and Sony, we have a tonne of respect for them, but we see Amazon and Google as the main competitors going forward.
"That's not to disrespect Nintendo and Sony but the traditional gaming companies are somewhat out of position."
Although Amazon - which offers games on its app stores - is yet to enter the gaming industry with its own service, Google joined with its Stadia streaming platform in 2019.
Spencer added the change in technology meant Microsoft was willing to work with Nintendo and Sony to ensure they don't get left behind.
He explained: "I don't want to be in a fight over format wars with those guys while Amazon and Google are focusing on how to get gaming to 7 billion people around the world. Ultimately, that's the goal."