Sega, Microsoft Weigh Cloud Gaming Partnership

Microsoft Corp MSFT and Sega Sammy Holdings Inc SGAMF SGAMY agreed to explore a partnership to develop big-budget titles using the Xbox maker's cloud gaming tech.
"By working with Microsoft to anticipate such trends as they accelerate further in future, the goal is to optimize development processes and continue to bring high-quality experiences to players using Azure cloud technologies," Sega said.
Sega is exploring making titles with global reach on Microsoft's Azure cloud platform.
Microsoft's own major cloud gaming initiative is available via the Xbox Game Pass, a cross-platform subscription service that features Sega titles like the hit "Yakuza" series, Reuters reports.
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 being on the backfoot in the console battle with Sony Group Corp's SONY PlayStation.
Sega, which dropped its own console business after a string of flops, is a rich maker of "pachinko" machines for gambling and has flagged its ambitions to widen the appeal of its video games.
Price Action: MSFT shares traded higher by 0.36% at $332.83 in the premarket session on the last check Monday.