Microsoft And Sega Are Teaming Up For Next-Gen Cloud Gaming

With an eye towards the future, Sega is entering into a strategic alliance with Microsoft in a move that will enable the Tokyo-based game maker to take advantage of the tech giant’s cloud technology.

Here is how Sega describes the alliance in its own words:

SEGA Corporation (hereinafter referred to as “SEGA”) and Microsoft Corporation (hereinafter referred to as “Microsoft”) have agreed in principal, a strategic alliance that explores ways for SEGA to produce large-scale, global games in a next-generation development environment built on Microsoft’s Azure cloud platform. The alliance would form a key part of SEGA’s mid to long-term strategy, allowing the business to move forward with “Super Game”, a new initiative for developing new and innovative titles where the key focuses are “Global”, “Online”, “Community” and “IP utilization”.

Sega mentions how 5G has made it easier to enjoy on-demand content, and this alliance shows the Tokyo-based game company clearly recognises that game streaming is the future. Therefore, it’s exploring next-gen developmental resources in a cloud-based environment. 

“This proposed alliance represents SEGA looking ahead, and 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,” writes Sega.

While this certainly isn’t the rumoured Sega-branded Xbox for Japan, an alliance between these two companies has long seemed inevitable as their relationship goes way back. For example, Sega Chairman Isao Okawa reportedly tried to get Bill Gates to add Dreamcast compatibility to the Xbox to keep the Japanese console alive. (And to be honest, the Xbox really was the closest we got to the Dreamcast 2.0!) The two working together on a next-gen cloud platform for gaming makes total sense.

“We look forward to working together as they explore new ways to create unique gaming experiences for the future using Microsoft cloud technologies,” says Microsoft’s Sarah Bond in the alliance’s official announcement. “Together we will reimagine how games get built, hosted, and operated, with a goal of adding more value to players and SEGA alike.”