Microsoft wants to buy a Japanese game studio to bolster its collection.

Xbox One X

Xbox One X

The company - which has recently acquired 'Brutal Legend' developer Double Fine along with creating its own 'Age of Empires' branch - has 15 in-house studios so far, but it looks like the goal is now to get a foothold in Asia.

Xbox boss Phil Spencer told "I think it would be nice if we found an Asian studio, in particular a Japanese studio, to add [to our studios].

"I liked it when we had some first-party capability in Japan. We have a small team there, but I think we can do more. That said, through our trips to Japan, I love having Phantasy Star back on our stage with Sega -thought that was fantastic.

"Miyazaki-San, before with Dark Souls and now having Elden Ring on our stage... the Japanese creators have shown up more and more."

Meanwhile, Microsoft has made waves at E3 after announcing its next Xbox console.

Nicknamed Project Scarlett, the next generation hardware is set to launch "holiday 2020", and the company has already given gamers a taste of what's to come.

Spencer made the announcement during the E3 2019 press conference, and it is set to have around four times the power of its Xbox One X predecessor.

As well as a custom "Zen 2 and Navi processor from AMD, the console will also support up to 8K visuals with frame rates of up to 120 FPS.

The company confirmed it will support ray tracing, and - just like Sony's upcoming PlayStation 5 - it will have an SSD for faster loading.