Sega, Microsoft explore cloud gaming alliance

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 of 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’s stock soared 6% in morning trading.

The Xbox Game Pass, a cross-platform subscription service that includes Sega titles like the hit “Yakuza” series, is Microsoft’s own significant cloud gaming venture.