Sam Nussey

TOKYO (Reuters), Sega Sammy Holdings said Monday it is looking to form a strategic alliance (NASDAQ:) with Microsoft in order to create big-budget titles that use the Xbox gaming technology. This could be a sign of a stronger tie-up.

Sega from Tokyo is interested in making titles on Microsoft Azure Cloud Platform that are global, the company stated in a stock market statement. However, Sega did not provide further details such as whether it would require exclusive rights or capital investment.

Sega shares jumped 6% in morning trading.

Microsoft’s cloud gaming program is now available through the Xbox Game Pass. This cross-platform subscription service features Sega titles like the “Yakuza”, series.

Cloud gaming is a way to cut the ties with bulky hardware, but it requires an internet connection. Microsoft has been heavily invested in this sector, even though Xbox is generally viewed as having lost the war for the console market. Sony (NYSE:)’s PlayStation

Sega stated that Microsoft is working together to predict such trends and accelerate them further in the future. The goal of this collaboration was to optimize development processes, as well as continue to deliver high-quality experiences for players who use Azure cloud technologies.

Since the 1970s, rumors have swirled about Sega’s bid to acquire “Sonic the Hedgehog”, publisher Sega by Microsoft. Redmond’s Washington-based company is still struggling to compete in Japan as the country with the largest number of gamers and an innovator in the gaming industry.

These two companies have been partners for many years. The announcement on Monday comes just after some highly acclaimed Sega recent releases such as the “Persona” or “Total War” series.

Sega is an established maker of gambling “pachinko”, and it has stated its desire to increase the popularity of its games.