Yoichi Wada, boss of giant Japanese gaming firm Square Enix, has told the Financial Times that the games business in borders on the xenophobic. The is part of his firm's plan to address this, with other acquisitions also possible.

"In the last five to 10 years, the Japanese games has become a closed environment, with no new people coming in, no new ideas, almost xenophobic. It is now slightly behind western counterparts," he conceded in the new interview.

Wada says that his firm are ahead of the curve in addressing this problem, one of their biggest investments being the recent purchase of Eidos, which is in the process of being completed.

"The combination of Eidos and gives us a good platform from which to expand. In that process, we might decide to acquire another company," he hinted.

By Luke Guttridge