Although it seems like this partnership might be to manufacture a Sega Retro console.
The announcement was made at the Sega FES 2018 in Tokyo where it was confirmed that they will be bringing their Sega Ages labels On Nintendo Switch eShop globally.
At the same event, Sega has also announced that updated versions of its classic titles Shenmue I and Shenmue II are heading to the PlayStation 4, the Xbox One, and PC. Although we don't know yet which titles will be included just yet, we can likely look forward to it releasing with classic titles such as the first three Sonic games and hopefully packaged with two controllers.
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Recently, we came reported that Sega will be working with the Heavy Rain lead designer Caroline Marchal on new narrative games.
This new may be a bit disappointing to Switch owners hoping the SEGA Mega Drive Collection would arrive on the console, but it's a start we suppose.
Sega says that the tentatively-named Mega Drive Mini is being released in conjunction with the console's 30th anniversary, and that it will carry a number of classic games.