"It is important for Capcom to turn its efforts to increase its share in the overseas market where much of the growth in the home video game and mobile content markets are taking place," said Capcom CEO Kenzo Tsujimoto, according to Next Generation.

With a half-dozen Wii titles on the way, in addition to 14 planned Nintendo DS games and the anticipated Devil May Cry 4 (PS3, X360, PC), Capcom is in no hurry for a merger. Tsujimoto noted that the company is more interested in the prospect of forming partnerships with overseas developers in order to exploit the expanding market.

"There have been many mergers and acquisitions in the industry in recent years with companies attempting to secure popular content or to expand, " said Tsujimoto, "but Capcom is currently not envisioning any mergers with [Japanese] game companies or toy makers."

Fellow Japanese publisher SEGA has been leading the charge out West. The company has struck several deals with overseas developers, such as BioWare in the case of Sonic RPG for the Nintendo DS, and GasPoweredGames for a new PC roleplaying game.

For its part, Capcom recently partnered with four Western developers to publish several new downloadable games--such as Backbone Entertainment's retouching of Capcom's Super Street Fighter II Turbo HD Remix, Big Rooster's version of Games Workshops' board game Talisman, and WizKid's Rocketman--on the Xbox 360 and PlayStation 3 online networks.