Microsoft and Sega Considering a Cloud Gaming Partnership

Giant tech company Microsoft Corp. (MSFT) and Japanese video game developer and video game machine manufacturer Sega Sammy Holdings Inc. (TYO: 6460) are reportedly considering a strategic partnership to develop big budget video games using Microsoft cloud gaming technology.

Microsoft which owns widely used gaming console Xbox has a cloud computing platform, Azure Cloud which it intends to use in this partnership for cloud gaming.

In a regulatory filing, Sega points out that it is exploring developing big video game titles with a global reach using Azure Platform. The company however failed to reveal any specific details on the matter like whether the partnership would involve exclusivity for the titles or capital investment.

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,” said Sega.

The two companies have partnered severally in the past on multiple projects. This latest partnership will indeed leave Microsoft’s Xbox at better place to compete which its fierce competitor PlayStation console which is owned by Sony Group Corp. (TYO: 6758).

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