Home / Technology / Nippon Ichi Software is said to have been in financial hot water and employees can not be paid

Nippon Ichi Software is said to have been in financial hot water and employees can not be paid

By Alistair Wong . May 19, 2019. 3:30 pm

  Nippon Ichi Software

It is known from various Japanese news agencies that Nippon Ichi Software, the studio behind the Disgaea series and other titles such as Destiny Connect Yomawari and others are experiencing financial difficulties and allegedly needing funds to pay their employees. [Thanks Gamebiz.jp !]

The message is based on a recent announcement by the company on the JASDAQ Exchange that Nippon Ichi has applied for an MS Warrant Stock, which is viewed by traders as a last resort. This is essentially a way to raise funds by selling stocks on more favorable terms used by companies that can no longer lend money from the bank or from investors. The downside is that it takes investors by surprise, because stocks are now worth less. This move can be used multiple times to raise money (and this is the first of Nippon Ichi, which means that Nippon Ichi will not be closed until tomorrow), but it leads to a loss of confidence among investors.

As for the allegations that employees can not be paid, it is a deduction based on the announcement itself, stating that the total requested funds of 573,638,750 yen for the development of a game, including the payment of the employees, incurred. In the event that they fail to increase the full amount, the salaries of the employees are prioritized.

While Nippon Ichi Software recently scored good results with Labyrinth of Refrain and Disgaea 5 Complete their games were unsuccessful despite the thrust overseas, resulting in new IPs such as Yomawari The Series Refrain The Princess Guide and more. Destiny Connect One of their most ambitious new role-playing IPs with a 3D world, topped the top 20 sales figures in the week of their release.

The other big misstep lately is the role play Disgaea whose mobile title could not make up for the invested costs. The game has been in maintenance hell since its launch on March 1

9th and was pulled in April for further correction. It took at least three months to get everything repaired, which means more money will be put into the project without any money being repaid. Disgaea RPG also caused a price crash in April.

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