Yoichi Wada, Square-Enix president, might be getting delusions of grandeur for his company.In a recent interview with Nikkei Business Online, Wada said that Square-Enix might be looking into producing hardware. After pointing out that the most successful consumer products of this times are the iPod and the Nintendo DS he said the following.

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.

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’.

Its interesting to note that Taito has experience with arcades but not with handhelds, which, given Wada’s remarks, seem to be whats on their minds.

But in all honesty, does Square really believe it has what it takes to move into the hardware business? Square could definitely stand on its own with their huge fan base, specially for the Final Fantasy series. But can it really compete with the big 3? I dont think so. Still, they are committed to release “something”, and this might mean a lot in the coming generation.

Square is a key player in getting consoles sold, if they go solo what will this mean for Nintendo and Sony? Will competition get tighter? Will this mean no more support from Square to Sony or Nintendo?

Personally I think Square-Enix is trying to bite more than it can chew. Then again, they did release The Spirits Within they are not new to disaster.

[GamesIndustry.biz]