Amid a wave of mergers and acquisitions in the gaming industry, Capcom has made it clear that it is not interested in being acquired by Microsoft. This revelation comes as Microsoft is close to sealing its unprecedented $68.7 billion Activision Blizzard deal. This article will dive deep into Capcom’s stance, the strategic difference between the two companies, and the broader implications for the industry.

Capcom’s Position on Acquisition

Official Statement by COO Haruhiro Tsujimoto

In a recent interview with Bloomberg, Capcom’s Chief Operating Officer Haruhiro Tsujimoto revealed that the company would “gracefully decline” any acquisition proposal from Microsoft. Tsujimoto elaborated further by stating that both Capcom and Microsoft would benefit more from an equal partnership rather than an acquisition.

The Timing and Context

Capcom’s refusal to entertain any acquisition offers aligns with its current market momentum. The company recently celebrated its best-ever financial year and is doubling down on organic growth and in-house talent development.

Microsoft’s Acquisitive Strategy

The Pending Activision Blizzard Deal

Microsoft is on the brink of completing the biggest deal in gaming history by acquiring Activision Blizzard for $68.7 billion. The deal has received preliminary approval from the Competition and Markets Authority (CMA) and is nearing completion.

Divergent Corporate Strategies

While Microsoft sees acquisitions as a fast-track method to increase its market penetration and expand its content library, Capcom has a different outlook. It is worth noting that the strategy employed by Microsoft stands in stark contrast to Capcom’s focus on organic growth and talent nurturing.

Other Companies Taking a Similar Stand

Larian Studios’ Refusal for Acquisition

It seems that Capcom is not alone in its sentiment. Larian Studios, known for developing Baldur’s Gate 3, also rejected any notion of an acquisition by Microsoft. The CEO found such speculation “flattering” but has no intention of selling the company.

Capcom’s Future Plans

Focused on Mobile Gaming

Capcom is working on leveraging its position in the mobile gaming sector. It has confirmed that its last two mainline Resident Evil games will be released for iOS devices in late 2023. The aim is to achieve 100 million sales during its current fiscal year, starting on April 1.

Technological Advancements

Tsujimoto mentioned that the company would have entered the mobile gaming market earlier if their in-house technology had permitted. Now that the tech is in place, Capcom is more ambitious in its plans to conquer the mobile gaming arena.

Conclusion

Capcom’s “no” to a potential acquisition offer from Microsoft isn’t surprising, given its recent successes and future strategies. Both companies have different approaches to growth, with Microsoft focusing on acquisitions and Capcom aiming for organic development. Other companies in the gaming industry, like Larian Studios, also share a similar reluctance toward acquisitions. With Capcom eyeing significant mobile expansion, it is evident that the company sees a different path to maintaining its market position. As the gaming industry continues to evolve, these contrasting strategies among giants like Microsoft and Capcom will be interesting to watch.

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