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Nippon Ichi Software Reported In Financial Hot Water With Unpaid Employees



By Alistair Wong . May 19, 2019. 3:30 in the afternoon

Nippon-Ichi-Software

News has come from various Japanese news outlets that Nippon Ichi Software, the studio behind Disgaea other series and titles like Connected Destiny, Yomawari, and many more, in financial difficulties and allegedly need funds to pay employees.[Thankyou[Thanks[Terimakasih[ThanksGamebiz.jp!]

This news is based on a recent announcement by the company through the JASDAQ stock exchange that Nippon Ichi applied for MS Warrants Stock, a move seen by traders as a last resort. Basically, this is a way of raising funds by selling shares to be used cheaper by companies that cannot borrow funds from banks or investors. The downside is that it screws investors by incurring losses because the stock is now worth less. Although this step can be used several times to raise funds (and this is the first of Nippon Ichi, which means that Nippon Ichi will not be closed tomorrow), it has caused investors to lose confidence.

Regarding suspicion of not being able to pay employees, this is a reduction based on the announcement itself, which states that the total funds submitted amounting to 573,638,750 yen are for game development costs, including employee salaries. If they fail to increase the full amount, the employee's salary will be prioritized.

While Nippon Ichi Software recently worked well The labyrinth of restraint and Disgaea 5 Complete, because of overseas sales, their overall game has not run well even though there has been a switch to a new IP such as Yomawari, that Refrain series, Princess Guide, and others. Connected Destiny, one of the most ambitious new IP RPGs featuring the 3D world, surpassing top-20 sales in its release week.

Another major step in a number of times is with Disgaea RPG, their cellular titles that failed to return the costs invested. The game entered maintenance hell since it was launched March 19, and finally pulled in April to be further repaired, with at least three months needed to fix everything, meaning further costs were included in the project without the money being recovered. Disgaea RPG also caused a drop in stock back in April.

Video game stories from other sites on the web. This link left Siliconera.


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