Square Enix, the Japanese developer best known for its console role-playing game franchises, which include the Final Fantasy series, the Dragon Quest series and the Kingdom Hearts series, wants to expand its International empire and is looking to invest in other game developers.

"Economies of scale and breadth of scope are getting important. It may be a business alliance or it may be us taking a stake in others, but we need to go beyond traditional Square Enix," Square Enix President Yoichi Wada told Reuters today.

Wada has said that tough competition from around the world has caused them to think carefully about its current position and that it is now in talks with a number of companies.

Though the company hasn't said how much cash it has in the kitty to spend, Wada has said that management can issue about 290 million additional shares.

The biggest merger of companies within the industry to date is the $18.9 billion deal that was struck when Vivendi announced a deal with Activision to form Activision Blizzard in December 2007.

Source :: Activision Blizzard