The Rumor: Word is beginning to trickle down to fitbabits HQ from several independent sources that Microsoft has all but completed the purchase of Capcom. I'm not going to spell out the ramifications if this one is true, but I will mention two words and a number - Resident Evil 5
The Smash: While no one will officially comment on this rumor (We all know and love that song and dance). It appears this particular bit of gossip has roots in a thread that hit NeoGaf on Jan. 10.
It started out as a rumor that Microsoft was holding a press conference in Osaka the next day. The thread quickly turned into a place to shoot off pie-in-the-sky theories (go figure) about what might happen during the mystery press conference.
Among the odd ideas was the now smashed rumor that Hideo Kojima was putting together a 360 Metal Gear Solid title.
While not outright denying it, when contacted by Kotaku a Capcom rep called the story an "old rumor."
Yeah wow if this was true, its not, this would be the worst news ever. Last thing the gaming industry need is for another huge company to eat a talented studio and kill all creativity.
Please leave the studios alone Microsoft. We know you have enough money to buy the entire world and hire mercenary companies to erradicate the competition but please leave us alone.
considering that Capcom's already given the 360 two must-have titles (Dead Rising and Lost Planet), t'would be foolish for Microsoft not to at least persue this avenue. Of course, the only problem here is Capcom carries weight with them, but also money too. A purchase of that scale would be huge, the only thing that could rival it would be Sony buying up Square-Enix... which, if Sony's still in the financial level of doing so, would be Sony's next step.
Capcom may be a rumor, but i can't believe that MS isn't looking at SOME japanese developer to buy out right. i mean there are other potential targets:
SNK big in japan would be neat, but they have a bunch of other shit with them like the pachinko machines and all.
Level 5
Mistwalker
I'd be willing to bet that before the end of the new year, if MS can continue to make small strides in Japan (with the pending releases of about 3 or 4 other jrpg's), that they will announce a buy. MGS Japan is a bust on it's own so they need to envelop some other talent.
Sony buying Square Enix? Not a chance. That company makes tons of money on it's own and they are content in their current position.
Actually Crecente, this rumor doesn't appear to have anything to do with that NeoGaf thread. The guy at Evil Avatar is claiming that he's got a couple sources that are rumbling about it, and it doesn't sound like his sources are an internet post.
I think EGM also posted a similar rumor a few months ago, so this could have legs.
Obviously, I have no idea if any of this is true or not, but I just don't think it can be dismissed because of one or two forum threads that may or may not have anything to do with what's going on.
Whether or not this rumor is true, I think it would be a wise move for Microsoft to have a development studio based in Japan.
You know, simply *wanting* to buy a company and having the money to do so doesn't make it possible.
Capcom's a publicly traded company. Any buyout would have to be approved by a majority of shareholders. That's never a certainty with any American company buying a Japanese company, where the majority of investors are also Japanese.
Second, Capcom is not small. By my calculations (after looking at their web site), they have around $833 million in assets. MS could afford that, but even for them, that's not a small chunk of cash. I mean that's approximately half of what they've spent on the Xbox 360 in total so far, just for one purchase.
Capcom's right, also, in saying that this is an old rumor. Do a search and you'll find rumors about Capcom being bought out by just about everybody - and obviously, they haven't been bought by anybody yet, so none of those previous rumors turned out to be true. I think it all started after they had a few bad quarters and looked like they'd probably be searching for a merger. And maybe they are, but it doesn't have to be Microsoft.
This *could* happen - I don't want to discount it outright - but it sounds to me like pretty much any other rumor at this point. Chances are it's bunk.
$833 million? That's one months profit for Microsoft.
I don't consider the rumor likely, but it is far from smashed. What was the Capcom rep supposed to tell you when you called? That MS WAS secretly buying Capcom?
If it wasn't happening, or at least being talked about, why not just say "No." I'm pretty sure if you called and asked Squeenix if MS was buying them, they'd categorically deny it.
I need a bigger version of that picture. where do i get it? Google brings up nothing of it.
I would not be surprised in the least if MS has it's gun sights set on Capcom. Microsoft is notorious for buying other companies, especially ones that have better ideas. MS has deep enough pockets to buy most companies; hell, for that matter Bill gates himself has the money.
"Microsoft says it spent slightly less than $650 million on 23 acquisitions last year. By comparison, the company spent more than $2 billion on three companies alone in fiscal 2003." - http://seattlepi.nwsource.com/business/281937_software21.h...
""We are buying more companies than we have ever bought," Ballmer said in response to the question at Microsoft Corp.'s annual meeting with financial analysts."
$833 million is chump change for MS. Buying other companies outright is part of Microsoft's business strategy. Why lease the technology when you can own it?
I'm not saying that a MS acquisition of Capcom is going to turn out to be true. But don't be surprised if it does come to pass. Capcom has enjoyed financial and critical success with two 360 titles this past year. And I'm sure that MS has helped Capcom with developer access. These two companies are in a successful partnership, and it makes sense that it would go to the next level. If MS were to buy Capcom, it would put smiles on most Capcom employees by filling their bank accounts. And MS would have it's Japanese developer, something it desperately wants so it can make better inroads to the Japanese market.
yea, if Microsoft did buy one of Japans hugest third party companies, that would bring good fortune to the 360 in Japan, especially once that carries the weight of Capcom.
Really there's only a few other companies that MS could buy that would outright improve the Japanese 360 outlook. But Capcom is definatley in the top 5.
@logikil
I still don't understand why Level 5 hasn't been snatched up by Sony yet. Almost everything they turn out is top quality.
You're right though, a hypothetical Microsoft purchase of Level 5 would be a great move.
Never expected for this rumor to be true, way too out there. As long as I get to play RE-5 on my 360 (which I get the feeling I probably will be able to somewhere down the line) I'm ok.
@ Robotube
MS actually offered to buy Nintendo at one point for gobs of money. According to this article, Hiroshi Yamaushi told Steve Ballmer to suck his tiny yellow balls as a response.
Japanese people have extreme sense of pride in their work and would never allow a bunch of American yuppies to buy them out.
@Type-R
Money is the universal nationality.
This was in EGM 3 or 4 months back. I was shocked, but a rumor this big usually doesn't stay around this long w/o some truth to it.
This could mean no more Mega Man games for handhelds. Please, dear lord, let this be true.
Again with the damn NeoGAF threads. Will you people just learn to leave refuse like this in the waste bin? If they can permaban me for stating pro-Microsoft opinions, then they're as fair and balanced as Fox News.
I don't care if it's true or not, Microsoft owning Capcom = bad for the industry. Capcom creates a lot of big selling titles and it will only shrink the market if it happens.
Tell that to Sony and EA. They bought more studios than Microsoft has. Anyone remember Origin or Psygnosis?
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