Square-Enix president Yoichi Wada has revealed that the publisher is working on a new project with Taito, hinting that plans are in place to enter the videogames hardware market.
In an interview with Nikkei Business Online, partially translated by GameSpot, Wada observed that the most successful consumer products of recent times are the Apple iPod and the Nintendo DS.
"The strategy behind Nintendo and the iPod, to create a new environment based on hardware, is completely valid. But this is impossible if you dont have experience making hardware," Wada stated.
"This is one of the reasons Square Enix will collaborate with Taito, a company that produces physical hardware. In our talks with Taito, ideas for an actual physical product have come up. In any case, we will be releasing some 'thing.'"
Taito, which was acquired by Squenix in September last year, has experience of producing arcade and PC-based hardware - but Wada offered no hint as to whether the new product would fall into either camp. He simply said: "It's interesting, in that it's not the sort of thing you expect from Square-Enix."