Sega, Microsoft explore cloud gaming alliance
01/11/2021 04:51
By Sam Nussey
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.
(Reporting by Sam Nussey; Editing by Christopher Cushing)
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