Capcom has issued a statement regarding its current financial status, following recent rumours that the Japanese company could be a target for purchase by Microsoft.

Several stories emerged over the weekend saying that, following its deal with Rare, Microsoft would be continuing in its bid to add more exclusive content to its Xbox format with a deal for Capcom.

It's also well known that Microsoft has struggled to make an impact with the console in Japan, so a Japanese publisher would no doubt boost their sales in the Land of the Rising Sun,therefore making the company at the top of Microsoft's 'shopping list'.

Add this to news of financial difficulties within Capcom and the rumour mill started turning once more. A statement from the Resident Evil publisher regarding its current financial situation, however, suggests that, with its company continuing to thrive, any such deal would be unlikely.

A spokesman from Capcom commented: "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."

So, will Microsoft buy Capcom? It's looking less likely than before, but then again Rare made similar statements�we'll keep you informed.