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Gaming Platform Wars | Sega and Microsoft announce strategic cloud gaming initiative

Sega today announced “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 is part of Sega’s mid-to-long term strategy “to move forward with a new “Super Game” initiative or for developing new titles where the key focuses are “Global”, “Online”, “Community” and “IP utilization”.

Sega mentions the current “widespread deployment of 5G and cloud services” and how gamers and gaming experiences are now “more attainable,” and delivering high-quality experiences using Azure cloud technologies.

“we seek to further advance our game development so that our titles can be enjoyed by fans all over the world; in this regard, we aim to build an alliance that utilizes both SEGA’s powerful game development capabilities and Microsoft’s cutting-edge technology and development environment.”

Yukio Sugino, President and COO at Sega corporation

Microsoft’s CVP Sarah Bond echo’s Sega’s messaging of delivering Sega’s games via the cloud. Given the vague statements, I think we can speculate that Sega may do one of two things, first deliver Sega games current and future titles, via a new Sega Cloud Gaming service or add current and future Sega titles via Xbox Cloud Gaming. Both potential avenues are exciting prospects, but I think having games on (xCloud) Xbox Cloud Gaming via Game Pass Ultimate would make the most sense for consumers since there are already many cloud gaming platforms competing for consumer’s monthly subscription dollars.

A former industry insider and tech industry enthusiast.

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