Sega have dismissed all speculation surrounding the company could be the target of acquirers including Microsoft, with it stressing it plans to remain part of a larger Japanese entertainment conglomerate.

Sega is well-known within the videogame industry and has a close relationship with Microsoft, but it adamant it will remain within Sega Sammy Holdings Inc.

Shares of Sega Sammy rose to the highest point since 2007 this week, with legal fillings claiming Microsoft were considering purchasing Sega to boost the Xbox Game Pass subscription service.

“No, not now,” was the response Sega gave when asked if it was open to acquisition talks. Declines were made that suggested Microsoft had made a formal approach.

Analysts have been arguing the Sega might consider finding a new parent due to the main business of pachinko pinball-machines offering limited growth. There are speculations the industry will consolidate as developers attempt to offset costs.

Microsoft have not responded as to whether it was trying to acquire Sega, however it did consider acquiring Square Enix Holdings back in 2019.

There are strong relationships between Sega and Sony, Nintendo, Apple, and Amazon. Microsoft however, values the company more than other platforms. There were plans for a strategic alliance in 2021 to support Sega developing big-budget games.

“We are very close with Microsoft and have a great relationship with its management team. Microsoft particularly has a high regard for us. Xbox’s Phil Spencer and Sarah Bond are really serious about values that video game fans emphasize.”

Microsoft are attempting to strengthen alliances with Japanese publishers to catch Sony and Nintendo beyond the US.

The presence of Xbox in Japan is small but is currently making progress. There are increases in the amount of games Japanese publishers are providing to Microsoft, including franchises that were previously exclusive to PlayStation.