SEGA doubts Microsoft's Xbox will ever acquire the company.

During the FTC's legal battle with Microsoft over its acquisition of Activision Blizzard, it was claimed that the firm was eyeing buying the Japanese video game and entertainment company.

However, SEGA's chief operating officer Shuji Utsumi has said it's unlikely.

Speaking to CNBC, he said: "Many companies are interested. We feel honoured.

We have attractive IPs and potentials. Companies owned by the owner. A strong owner. I don't think that kind of transaction is going to happen."

However, Sega Sammy is looking at other ways to expand its portfolio after acquiring 'Angry Bird' developer Rovio recently.

Utsumi added: "As an entity of Sega Sammy, we are acquiring some of the companies. We just made an announcement [to buy Rovio]. We are still looking for opportunities for growth."