Microsoft to purchase Capcom?

The rumor mill was abuzz late last week when Japanese software company Capcom posted reports expressing large losses over Fiscal Year ’02. This, following hot on the heels of the recent Rare purchase by American software company Microsoft, lead to rampant speculation that Capcom, one of the world’s leading software developers, would in fact be bought out by Ballmer and the boys.

Microsoft really has yet to make a dent in the Japanese console market, so logically the purchase of a prime developer would be a step Microsoft would be willing to take for it’s love child, the Xbox video game console, wouldn’t it?

Alas, no deal has begun to be negotiated to this point.

“Capcom has made some financial adjustments in Japan that could cause the group to declare a loss in this fiscal year. The adjustments relate to extraordinary items related to real estate. This does not reflect any downturn in the performance of the general business of the software development and sales operations,” said a spokesman for the firm.

At this time, a Microsoft purchase of Capcom would be unlikely, but as we’ve come to learn with Microsoft, anything can (and usually does) happen. We here at Funxbox will keep you up to date on any changes in the Microsoft/Capcom situation.

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