Japanese videogame maker Square Enix Co Ltd said it is considering taking stakes in game developers to combat rising competition from established game publishers and other entertainment companies.

"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 the Reuters Global Technology, Media and Telecoms Summit in Tokyo on Tuesday.

"We face competition not only from Japanese videogame companies but from game companies worldwide. We also see some new players from outside the videogame industry coming in," he said.