Microsoft to extend ties with Sega

C|Net | at | by Mike

U.S. software giant Microsoft unveiled Friday an extended alliance with Japanese game developer Sega ahead of the U.S. company's closely awaited launch of its game console Xbox later this year. The Xbox represents Microsoft's push into the $20 billion video game industry now dominated by Japan's Sony and Nintendo, which also are marketing advanced 128-bit game consoles. Under the agreement, Sega will provide new games in its hit Shenmue series exclusively for the Xbox in the North American market and it will make new games in its popular Fantasy Star Online series for the Xbox.