Microsoft, Sega Explore Cloud Gaming Alliance to Develop Big Budget Titles


Sega Sammy on Monday said it is exploring a strategic alliance with Microsoft to develop big-budget titles using the Xbox maker’s cloud gaming technology, speculating that the move could signal a deeper alliance. could.

Tokyo-based Sega looking to create titles with global reach Microsoft’s Azure Cloud Platform, it said in a stock exchange statement without providing further details, including whether a deal would include exclusivity for title or capital investment.

Shares of Sega jumped 6 percent in morning trading.

Available through Microsoft’s own flagship cloud gaming initiative xbox game pass, a cross-platform subscription service that includes Sega titles such as the hit “Yakuza” series.

Cloud gaming breaks ties with heavy hardware but requires a fast internet connection. The Xbox is widely seen on the backfoot in the console battle with Sony’s PlayStation due to Microsoft’s deep pockets in nascent territory.

Sega said, “Working with Microsoft to anticipate such trends in the future, optimize development processes and continue to bring high-quality experiences to players using Azure cloud technologies.”

A bid by Microsoft for “Sonic the Hedgehog” publisher Sega has been rumored for decades. Japan, the world’s third-largest gaming market and a major innovator in the industry, remains a weak spot for Washington-based firm Redmond.

The two firms have a long history of partnerships, with Monday’s announcement following a string of critically acclaimed recent releases from Sega including the “Person” and “Total War” series.

Sega, which abandoned its own console business after several flops, is a prolific manufacturer of “pachinko” machines for gambling and has flagged its ambitions to widen the appeal of its video games.

© Thomson Reuters 2021