Sega and Microsoft enter into agreement for video-game development

TOKYO -- Video-game maker Sega Enterprises Ltd. has announced Microsoft
Corp. will develop software for its next-generation game machines, an
alliance bringing closer to reality the convergence of personal computers
and video-game machines.

Microsoft will develop an original operating system for the planned Sega
game machine called Saturn, a Sega spokesperson in Tokyo said.

This move is Microsoft's first move into the game-computer market.

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