TOKYO (Nikkei)--Microsoft Corp. will offer its games for Apple Inc.'s iPhone and other competing smartphone platforms starting this fiscal year through a partnership with a Japanese firm, the Nikkei reported in its Tuesday morning edition.

The U.S. software giant has tied up with KLab Inc. , a midsize developer of smartphone games. Under a licensing deal, KLab will convert console and personal computer games from Microsoft so that they run on the iPhone and smartphones using Google Inc.'s Android operating system.

"Age of Empires," a popular game on Microsoft'sd Xbox console and Windows-based PCs, will launch worldwide for smartphones by the end of fiscal 2013. It will be free to play, with fees charged for in-game services. A Japanese version will be available as well. Other titles will be released gradually. Microsoft has a library of hundreds of games developed in-house.

The move could mark a major turning point in the video game industry, whose main business has been with consoles. The sector is threatened by the explosion of smartphone games and the launch of low-cost services taking advantage of cloud computing.

The global smartphone game market is projected to double from the 2012 level to Y1.6 trillion in 2017. Meanwhile, sales of consoles, including those from Sony Corp. (6758.TO) and Nintendo Co. (7974.OK), dropped about 20% on the year in 2012.

Previously, Microsoft developed some simple games for smartphones running its Windows Phone operating system. But Windows Phone is used in only 3% of the world's handsets--a far cry from the roughly 90% combined market share held by Apple and Google.

24-06-13 2335GMT

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