Microsoft, Sega Explore Cloud Gaming Alliance to Develop Big Budget Titles

A bid for Sonic the Hedgehog publisher Sega by Microsoft has been rumoured for decades.

Advertisement
By Reuters | Updated: 1 November 2021 17:48 IST
Highlights
  • Sega shares jumped 6 percent in morning trading
  • Cloud gaming requires a fast Internet connection
  • The two firms have a long history of partnership

Microsoft's own major cloud gaming initiative is available via the Xbox Game Pass

Sega Sammy 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.

Advertisement

Sega shares jumped 6 percent 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.

Advertisement

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 future, the goal is to optimise development processes and continue to bring high-quality experiences to players using Azure cloud technologies," Sega said.

Advertisement

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.

Advertisement

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.

© Thomson Reuters 2021


How's Nokia brand licensee trying to compete against Realme and Xiaomi in India? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.
 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Advertisement

Related Stories

Popular Mobile Brands
  1. Band Melam OTT Release Details: All You Need to Know About This Telugu Romance Musical
  1. Kolaiseval Out on OTT: Know Everything About This Tamil Psychological Thriller Film Online
  2. Band Melam OTT Release Date Revealed: Know When and Where to Stream it Online
  3. LEGO Friends: The Next Chapter Season 4 Now Streaming on Netflix: What You Need to Know
  4. Small NASA Satellite Could Reveal How Lightning Impacts Space Weather
  5. Piece by Piece: Pharrell Williams’ LEGO Documentary Now Streaming on Netflix
  6. Ustaad Bhagat Singh OTT Release: When & Where to Watch Pawan Kalyan’s Telugu Film Online
  7. Battleground Season 2 Now on OTT: Know Where to Watch This Ultimate Fitness Reality Show Online
  8. Apne Paraye Out on OTT: Know Where to Watch This Hindi Dub of Bengali Drama Series
  9. Scientists Just Created the Largest 3D Map of the Universe Ever to Study Dark Energy
  10. Honor 600 Pro and Honor 600 Key Specifications, Features Revealed via Official Listing
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.