Sega, Microsoft explore cloud gaming alliance – Reuters

Sega logos are pictured at Tokyo Game Show 2016 in Chiba, east of Tokyo, Japan, Sept. 15, 2016. REUTERS/Kim Kyung-Hoon
TOKYO, Nov 1 (Reuters) – Sega Sammy Holdings (6460.T) on Monday said it is exploring a strategic alliance with Microsoft (MSFT.O) to develop big budget titles using the Xbox maker's cloud gaming tech, driving anticipation the move could signal a deeper tie-up.
Tokyo-based Sega is exploring making titles with global reach on Microsoft's Azure cloud platform, it said in a stock exchange statement without providing further details, including whether a deal would involve exclusivity for the titles or capital investment.
Sega shares jumped 6% in morning trading.
Microsoft's own major cloud gaming initiative is available via the Xbox Game Pass, a cross-platform subscription service which features Sega titles such as the hit "Yakuza" series.
Cloud gaming cuts ties to bulky hardware but requires a fast internet connection. Deep pocketed Microsoft's push into the nascent sector comes as Xbox is widely seen as being on the backfoot in the console battle with Sony's (6758.T) PlayStation.
"By working with Microsoft to anticipate such trends as they accelerate further in future, the goal is to optimise development processes and continue to bring high-quality experiences to players using Azure cloud technologies," Sega said.
A bid for "Sonic the Hedgehog" publisher Sega by Microsoft has been rumoured for decades. Japan, the world's third largest gaming market and a major innovator in the industry, remains a weak spot for the Redmond, Washington-based firm.
The two firms have a long history of partnership with Monday's announcement coming after a string of critically acclaimed recent releases from Sega including in the "Persona" and "Total War" series.
Sega, which abandoned its own console business after a string of flops, is a prolific maker of "pachinko" machines for gambling and has flagged its ambitions to widen the appeal of its video games.
Our Standards: The Thomson Reuters Trust Principles.
Subscribe for our daily curated newsletter to receive the latest exclusive Reuters coverage delivered to your inbox.
Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers.
Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology.
The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs.
The industry leader for online information for tax, accounting and finance professionals.
Information, analytics and exclusive news on financial markets – delivered in an intuitive desktop and mobile interface.
Access to real-time, reference, and non-real time data in the cloud to power your enterprise.
Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks.
All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays.
© 2021 Reuters. All rights reserved

source