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Microsoft to buy Capcom, say gossipmongers

Marcel Klum   on 29 September 2002 - 12:54 · 32 comments & 2113 views

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Rumour has just emerged that Rare wasn't the only target when Microsoft sat down with a shed-load of cash and a hunting rifle.

According to senior gossipers in the UK today, Microsoft has been in discussions with Capcom in Japan with the intention of buying the company. The talk arrives on the back of a set of shaky financials for Capcom, where the Japanese giant wrote off approximately £70 million in the past year on scaling down company assets.

Capcom is the latest company rumoured to be targeted by Microsoft in recent weeks, after the American behemoth finally admitted it had bought Rare for the "bargain" price of £240 million.

Current talk is also pinning Sega as a possible buyout opportunity for Microsoft, although chatter on the subject has slowed in the last week.

The talk of Capcom going under the hammer has yet to be substantiated by any sources involved in possible talks. According to Japanese insiders, only two other Xbox games from Capcom have yet to be announced, one of which is a driving title.
The main focus for the Capcom, despite the shifting of Resident Evil to Nintendo hardware, firmly remains PlayStation 2.

More on this in the coming weeks. Feel the power of Microsoft's cash.

News source: computerandvideogames.com


"I frankly think that Celera is still the company that mapped the human genome," says Caroline Kovac, general manager of IBM Life Sciences. "It is a company that is extremely well-positioned, having done that, to incorporate genomics into the drug discovery process."

Still, the way Celera chose IBM illustrates the Rockville, Md.-based genomics firm's growing pains. When Celera signed up Compaq in 1998, the company put a great deal of importance on the ability of various supercomputing systems to run a single gene-mapping program. Now, says John Reynders, vice president of informatics at Celera, it has much more diverse computing needs. "The constellation of things that we're doing is very rich," he says.

Among the factors that made IBM and EMC Celera's top choice is IBM's experience migrating data from old systems to new ones. Another factor is that IBM will have to integrate two firms. Celera and Applied Biosystems are both tracking stocks for a larger corporation called Applera. Lately, Applied has taken over Celera's original business, selling gene-sequence subscriptions to drug companies, while Celera focuses on developing its own products.

An issue that also may have played a role in Celera's decision: Now that Compaq has been acquired by Hewlett-Packard, it is in flux. To add more questions, Compaq will at some point start outsourcing chip design to Intel. "I think there's no question that there is no Compaq anymore, and Compaq has issues with the chip, HP has issues with the platform," says Kovac. "But it's not as if Celera didn't have other choices."

The question for Celera, however, is not merely whether it made the right choice in picking IBM. Even with its rich cash position, the company needs a real line of revenue-producing products. And it needs to develop them as quickly as possible.

Post a comment · Send to friend Comments · There are 32 additional comments
(1 reply) #1 KICK_XP on 29 Sep 2002 - 12:59
pfft, micrsoft suck ass
#1.1 EDF587 on 30 Sep 2002 - 11:23
They are doing the same thing they did to computers, they are doing it to video games. I hope Resdient Evil wil be on the XBOX in a couple of years.
#2 DOCa Cola on 29 Sep 2002 - 13:16
arg, i hate ms
#3 CoCoLUS on 29 Sep 2002 - 14:02
rare... capcom... ... nintendo, sony
#4 als345 on 29 Sep 2002 - 14:04
We'll its a good time to buy them anyways (These Companys Dont seem to be makeing any money). I think their well be [b]Alot[/b] of Microsoft XBOX Exclusives in the Future .

Last edited by 11000 on 29 Sep 2002 - 16:55
(1 reply) #5 QuaKeD on 29 Sep 2002 - 14:33
MS is the worse company that ever existed. I can't believe, they are buying EVERYTHING! That's a monopolic practice.... isnt it?
#5.1 teka on 29 Sep 2002 - 18:00
No, it isn't. Microsoft doesn't have a dominant position in videogames market.
#6 bigbear on 29 Sep 2002 - 14:52
Wow!!! I wouldn't mind getting a XBOX if Rare and Capcom comes up with XBOX exclusives.
#7 Phil Gates on 29 Sep 2002 - 15:47
lets go rape all the people incharge of the xbox's wives!
#8 limited inc on 29 Sep 2002 - 15:56
Damn now they gotta go and take capcom ba ms bl0wz
(1 reply) #9 alexchu2643 on 29 Sep 2002 - 15:57
*YAY* Microsoft becomes even bigger! They're a monopoly on the operating system front. At the moment, they're the underdog on the gaming side. This will probably give the Xbox a fighting chance against the PS2.... Perhaps the console war isn't over just yet.
#9.1 Phil Gates on 29 Sep 2002 - 17:11
yes it is over. all the xbox owners will be shocked when their xbox is out of date in a couple months when they show off xbox2 ('nother 400 bucks down the potty) long live ps2
#10 tonyunreal on 29 Sep 2002 - 16:17
MICROSOFT SUX
#11 mlbl on 29 Sep 2002 - 17:00
They're probably going to buy every damn thing....don't be surprised if you see McDonald's turns to "McRosoft" or "MicroDonald's"
#12 -outcast- on 29 Sep 2002 - 17:09
Long live Microsoft
#13 nicodareus on 29 Sep 2002 - 17:46
Interesting...instead of Marvel vs. Capcom 2, it will be Marvel vs. Microsoft 2
#14 Edge on 29 Sep 2002 - 18:07
Capsoft or Microcom?! You gotta be kidding.
#15 NeoTrunks on 29 Sep 2002 - 18:14
I guess you have to buy talent when you've got none.
#16 puckmaster87 on 29 Sep 2002 - 19:31
it'll never happen
#17 LordLOC on 29 Sep 2002 - 20:40
They are a company, out to improve the game base and technology base for it's own console system. I don't see any problem with them buying Rare, considering Nintendo LET them buy them without much hassle. If Capcom goes to MSville I say good. That would make Sony and Nintendo put out better friggin games for there own consoles. As for Sega, I was kind of hoping with the economics looking up for them a bit, they might have considered eventually going back into the hardware biz. Guess not.
#18 zi0nx5 on 29 Sep 2002 - 21:07
this is insane... sure microsoft is the underdog NOW but if this rumor is true then sooner or later they'll be dominating the vidgame industry as well!!! they're trying to steal rival console's spotlight AGAIN! this better not happen cuz I see the Capcom(Res.Evil)/Nintendo teamup is definitely able to go somewhere
#19 elw3irdo on 29 Sep 2002 - 21:33
What the fuck....shit, I mean does MS need the whole damn gaming industry under its grasp to be number one? It's fucking weak as all hell.
#20 tiger2k on 29 Sep 2002 - 22:12
i don't see why people are flaming MS, they are simple a business trying to make money (more of what they have), if they want to buy capcom, and capcom accepts then thats capcom's problem, I say if they have the money to do it, then why not
(2 replies) #21 Killa-b on 29 Sep 2002 - 22:40
i agree, all these silly left wing idealists, dont realize that its called a FREE MARKET. deal with it!!! MS is a huge underdog in the console market, and the #1 that that it needs for xbox is EXCLUSIVE titles. ie: PS2 Final Fantasy, Grand Toursimo, Metal Gear Solid, etc. Microsoft has Halo (which do we all forget that Microsoft bought Bungie 100%, just to get exclusive rights to Halo) MS's general strat is as follows. Sit around, thing everything is great untill they realise that a compeditor has a better product and done all the reasearch and market testing, then at the last min throw HUGE cash at the problem and ride the coat tails of the competition untill it, integrates into the OS and wait 2 years till they have a 80% market share. It happened with Netscape, it Happened with Media Player, it happened with XP. now if this is wrong or right is not the point, its business, (not my ideal stratgie, but it does tend to be sucessful, so all the more to them) dont be jelious cause u did not think of the simple money making scheme. ms evil, blah blah, welcome to coprate america, it happens every day the little guy gets eaten alive by big business. DEAL WITH IT.
#21.1 -outcast- on 29 Sep 2002 - 22:46
a hush falls over the ps2 kiddies......
#21.2 Hawkeye on 30 Sep 2002 - 04:43
That was very well said, Killa-b. I cannot understand why so many people are grumbling, just because it's Microsoft. Companies merge and buy out other companies all the time in this world. Of course when Microsoft makes a business decision like that, right away they are evil. How do people make that connection? When HP bought Compaq, nobody said HP was evil. When NVIDIA bought out 3dfx, nobody said NVIDIA was evil. But if Microsoft buys somebody, they are evil. I don't see the connection. Why can't people understand that it is simply an example of a common business practice that occurs in today's world?
#22 Killa-b on 29 Sep 2002 - 23:19
#23 tiger2k on 29 Sep 2002 - 23:49
well said
#24 AtmaLocke003 on 30 Sep 2002 - 02:38
i... hate... MS... not saying that they are evil, i just personally hate everything about them... heh
#25 eilegz on 30 Sep 2002 - 03:04
well since they cant invoate they just buy others to do their work very sad indeed. Is not surprising that in the future microsoft will buy all companies that make good games sooner or later those company will regret im pritty sure of that is like the people that sell their soul to the devil thats all
#26 Gunbuster on 30 Sep 2002 - 08:24
Personally I think this could backfire seriously on MS. Considering they initially tried to buy Nintendo, way back before they had any hardware, and that failed. Along with the failed Sega buyout. There is a possibility that this won't happen. However how are the big software companies going to react to the idea of being bought up by MS, maybe they preffer being independant and this would increase anti-xbox feelings rather reduce it. Also considering that the Xbox's two main sellers are Halo and Dead or Alive 3 neither from Capcom-esk bemoths. Maybe, just maybe they should be plowing money into small startups and medium sized developers.
#27 Fubar on 30 Sep 2002 - 12:21
well no matter what ms buy im sure they will leave the companys todo what they do best.... lest face it for them to buy the company in the first place must have been good to start with .. so no matter what they buy they will just leave it the way the said company/s have been run... ms will not change how the saids companys work... if they do then thats a mistake on there behalf.... they buy companys out to make better advances...... im sure companys who where bought buy MS willhave some where in the contract that there will be no interferance ...... bill gates is a money making machine and hes starting to show that he wants to spread his wealth and ides with other companys in the pc/ games sector ..... just leave em to get on with it..... if they fail they fail..... if the dont then it payed off..... no point trying to say that there evil by buying out companys and injecting cash into them companies to make better advances

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