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Sega & Microsoft explore strategic cloud gaming alliance

Sega Sammy HoldingsĀ on Monday said it is exploring a strategic alliance with Microsoft to develop big budget titles using the Xbox maker’s cloud gaming tech.

Tokyo-based Sega is exploring making titles with global reach on Microsoft’s Azure cloud platform, it said in a stock exchange statement on Monday. The Company did not provide further details.

Sega Stock jumped 5.2% in morning trading after the official announcement.

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.

“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.

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