Japanese giant (home of Dragon Quest and Final Fantasy) have put in a sizable offer for embattled Japanese game publisher-developer Tecmo.

Tecmo is of course home to the and the Dead or Alive games, but has hit financial troubles amid wranglings over unpaid bonuses to developers.

For their part, Square Enix believe the acquisition of would give them a stronger foothold in the North American games market, diversifying the combined firm's range of games while in the process saving Tecmo from potential meltdown.

Square's offer for Tecmo apparently offers shareholders a 30% premium on the game maker's pre-offer share price.

We'll bring you more on this as it unfolds.

By Luke Guttridge