TOKYO, Nov. 1 (BUS) – Sega Sammy Holdings said Monday it is exploring a strategic alliance with Microsoft to develop big-budget titles using the Xbox maker’s cloud gaming technology, leading to speculation that the move could signal a deeper connection.
Tokyo-based Sega is exploring the possibility of making titles with global reach on Microsoft’s Azure cloud platform; It said in a stock exchange statement without providing further details, including whether the deal will include exclusivity for titles or capital investment.
Sega shares jumped 6% in morning trading.
Microsoft’s main cloud gaming initiative is available via Xbox Game Pass, a cross-platform subscription service that features Sega titles like the hit “Yakuza” series.
Cloud games cut ties with massive devices but require a fast internet connection. Microsoft’s premium push into the emerging sector comes as the Xbox is widely seen as standing in full swing in the console battle with Sony’s PlayStation.
“By working with Microsoft to anticipate such trends as they accelerate further in the future, the goal is to improve development processes and continue to deliver high-quality experiences for gamers using Azure cloud technologies,” Sega said, according to Reuters.
Microsoft’s attempt to publish “Sonic the Hedgehog” Sega has been rumored by Microsoft for decades. Japan, the world’s third largest gaming market and a major innovator in the industry, remains a weak spot for Redmond, Washington.
The two companies have a long history of partnering with Monday’s announcement that comes after a string of recent critically acclaimed Sega releases including the “Persona” and “Total War” series.
Sega, which abandoned its console business after a series of failures, is a prolific maker of “pachinko” gaming machines and has highlighted its ambitions to expand the appeal of its video games.
HF