Will the giants one day enter the console market?

In a recent interview with Nikkei Business Online, Yoichi Wada, President of Square-Enix got talking about the state of the industry...and then went on to drop a hint that Square-Enix may, one day, enter the console market for themselves.

Here is an extract of the interview:

"After three years there will definitely be some [changes] underway [sic]... But this is entertainment after all, so you never know where the next big thing will come from... An exceptional creator can pull off rehashing the same material. This is the easiest thing to do when you're struggling with your content and model. This is fine as long as you pursue efficiency. This is what we've been doing for a long time, and in the process reached a profit rate of over 30 percent. However, this is what Square Enix did when the model was unchanging. Now things are different."

However, the nature of the business dictates that innovation must occur at a sustainable pace, he said. "You really have to dig deep within yourself to produce something new; you can't force it," Wada said. "We must change. But if we change all at once, the system will collapse, and since our profits are built on that system, it's a difficult question. So you have to introduce change from a completely unrelated direction within a separate budget framework. This is something all the companies are worrying about right now. Fortunately, we're financially prepared to handle change."

He observed that the outstanding examples of successful products in the recent past--the Nintendo DS and Apple iPod--are hardware. "The strategy behind Nintendo and the iPod, to create a new environment based on hardware, is completely valid," he said. "But, this is impossible if you don't have experience making hardware."

"This is one of the reasons Square Enix will collaborate with Taito, a company that produces physical hardware," he said. "In our talks with Taito, ideas for an actual physical product have come up. In any case, we will be releasing some 'thing.' It's interesting in that it's not the sort of thing you expect from Square Enix."

So, there you have it. After commenting on the ever-changing industry of videogames, Square-Enix hints that they will be working with Taito to produce something that we would not expect from them. Make of this what you will, but feel free to discuss it within our forums.