TOKYO — Sega Sammy Holdings on Monday said it is exploring a strategic alliance with Microsoft 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 that features Sega titles such as the hit “Yakuza” series.
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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 PlayStation.
“By working with Microsoft to anticipate such trends as they accelerate further in the future, the goal is to optimize development processes and continue to bring high-quality experiences to players using Azure cloud technologies,” Sega said.
