Japanese game developer Capcom is well known for video games like Resident Evil, Marvel vs. Capcom, and Street Fighter — but it doesn’t want to just capture gamers’ hearts, but moviegoers’ as well.

At the Tokyo Game Show in Chiba, Japan, its chief operating officer Haruhiro Tsujimoto told CNBC that Capcom’s strength in games is that it is able to sell both new and old titles alike.

Tsujimoto pointed that Capcom releasing new game titles almost every year to already existing franchises, such as Street Fighter and Resident Evil, “indicates that we have a strong and high quality catalog.”

The company is planning to release a sequel to action role-playing game Dragon’s Dogma after over 10 years. It was featured at the Tokyo Game Show but an official release date has yet to be confirmed.

Tsujimoto told CNBC’s Will Kouloris the approach is “one of our major strategies,” and that it “leads to the continued sales of our brands that we have released in the past.”

Capcom is no stranger to the film industry, having seen a live action movie Street Fighter made in 1994 and Resident Evil made into seven films since 1997.

“Capcom was one of the first companies to collaborate game business with cinema business,” Tsujimoto pointed out. “We have experienced the synergistic effects of doing so, whereby movies sell well and games sell well, when a game is made into a movie.”

As such, the company is deepening its foray into the film industry by setting up Capcom Pictures in Hollywood in 2022, and this film production company will aim to produce more films there.

“Our company will continue to evolve further in the future. Our strategy is to continue to develop both game production and film production, and to take digital entertainment to new heights by having these businesses not only compete but also encourage each other.”

While generative artificial intelligence has being touted as the next major step in the tech industry, having the potential to create text, pictures, and even videos, it may not come to the game development industry so soon.

Tsujimoto said that integrating AI in game development is a “tricky situation” where “a lot of issues need to be addressed before we can actually integrate generative AI to our operations.”

On Wednesday, Hisashi Koinuma, president and chief operating officer of Koei Tecmo Games echoed the same view.

He told CNBC that challenges still remain when utilizing generative AI in game development.

“We are still in the process of researching and studying how and to what extent generative AI, including rights-related issues, will benefit game production, and how much it will contribute to making better games.”

Camcom’s Tsujimoto, however, highlighted that generative AI can be utilized in terms of improving efficiency in workforce and development — but the company is still in the process of researching its use for game development

The COO said that this will not be done by reducing the number of developers, but by improving the efficiency of Capcom’s development through more efficient allocation of personnel while utilizing generative AI.

Correction: This story has been updated to reflect that Dragon’s Dogma 2 was featured at Tokyo Game Show 2023, but the game’s official release date has yet to be confirmed. An earlier version of the story misstated the fact due to translation issues.

Microsoft says it “really tried” to take the concerns of U.K. regulators to heart, before launching its fresh bid to take over Activision Blizzard — and it’s now up to the regulators to decide whether that path is clear.

“I think we need to let the regulators speak for themselves,” Microsoft’s vice-chairman and president Brad Smith told CNBC in an exclusive interview. “They have decisions that need to be made, especially in the U.K., but from my vantage point, what we’ve really tried to do is take these concerns to heart.”

Last Tuesday, Microsoft submitted a new proposal to U.K. regulators for the takeover of American game publisher Activision Blizzard after its initial proposal was rejected.

Microsoft and Activision have agreed to a new, restructured agreement, which the U.K.’s Competition and Markets Authority will now investigate with a decision deadline of Oct. 18.

On regulatory concerns, Smith said: “We haven’t tried to dismiss them. We haven’t tried to downplay them. We haven’t tried to ignore them.”

“We’ve worked to address them, and by addressing them, we have put together a transaction that will advance competition, while also eliminating the concerns on the anti-competitive side that some people had,” he told CNBC’s Martin Soong on the sidelines of the Business 20 Summit in New Delhi.

“I think it will be up to the regulators, especially now in the U.K., to decide whether that path is clear,” he said in an interview aired Monday.

U.K. regulators, the Competition and Markets Authority, said that under the new deal, Microsoft will not acquire cloud rights for existing Activision PC and console games, or for new games released by Activision for the next 15 years.

Instead, French gaming publisher Ubisoft will acquire those rights before Microsoft’s acquisition of Activision, the CMA added.

“That to me, is not just a recipe for this transaction,” said Smith.

“I think that in the world of technology, whether we’re talking about software or hardware or pharmaceuticals, there are times when companies can come together in advance innovation, produce better products, and there may be steps that need to be taken at the same time to address regulatory concerns.”