Nippon Ichi Software is under some financial troubles as the company’s titles have not been doing great in Japan. The issue has been continuously growing as employees have gone unpaid.
A recent announcement by the company JASDAQ stock said that Nippon Ichi Software had recently applied for an MS Warrant Stock, which is a move that is seen by traders as a last resort of sorts. It is a way of raising funds by selling sticks for cheaper used by companies who have become unable to borrow funds from the back on investors.
However, this has a downside as it screws over investors by incurring losses as stocks are now worth less. While such a move can be used many times in order to raise funds, it incurs a loss of trust from investors.
The announcement also states the total requested funds is 573,638,750 Yen, which is also the cost of developing a game, including employee pay. This is where the allegation lies that employees in the company may have gone unpaid. In the event that the company does not raise the full amount, employee salaries will be prioritized.
Nippon Ichi Software is mainly known for their work on the Disgaea series, and have tried many times to create new IPs that can reach the same level of success as Disgaea. Unfortunately for them, their efforts have not managed to get much success after their recent plans to release a Disgaea Smartphone RPG as it failed to impress.
The company is well known for games like Labyrinth of Refrain and Disgaea 5 Complete, which had good overseas sales as well. But, as a whole, other games such as Yomawari, the Refrain series, The Princess Guide did not do well in terms of sales.
Nippon Ichi Software has yet to respond to the issues that it is, but we hope that the company can turn things around from here. Post your comments below.