Puzzle & Dragons developer Gung Ho has come beneath fireplace from its shareholders, who’ve complained concerning the extraordinarily excessive wage of its president and poor returns on their investments.
Strategic Capital, an funding advisory agency, has submitted a report on behalf of firm shareholders requesting Gung Ho “up its recreation” because it highlights a lot of points (thanks Automaton).
The largest is the wage of president Kazuki Morishita, who obtained 340m yen (£1.77m) in 2023. That is much like the full remuneration of Nintendo president Shuntaro Furukawa (360m yen), and above related figures at Sq. Enix, Sony, Capcom, Konami, and Bandai Namco.
That is regardless of Gung Ho counting on cellular gacha recreation Puzzle & Dragons – its largest hit – for income since its launch in 2012, regardless of its income declining since 2014. Certainly, the report states Gung Ho has made lower than a tenth of Nintendo’s earnings, regardless of their presidents having related salaries.
Whereas the corporate has launched 20 video games since 2012, together with primarily based on in style IPs from Disney and Yo-kai Watch, the corporate has reportedly not been in a position to shake its dependence on Puzzle & Dragons.
The report estimates Gung Ho has spent over 100bn yen creating new titles, however these have collectively earned lower than 10bn yen.
To summarise, then, Gung Ho has a single however steadily fading hit recreation, has struggled to launch one other success, and is led by a president taking house an extortionate wage that far exceeds firm earnings. And now there’s friction between firm leaders and shareholders.
Gung Ho did see enormous success with Puzzle & Dragons, a free-to-play match-three puzzle recreation that was the primary cellular recreation to gross $1bn in income. In Japan, Nintendo even licensed a Mario-themed model of the sport for 3DS.
Strategic Capital’s report suggests reform by going personal and a overview of the remuneration system. It additionally states the corporate has “extreme” money reserves, which (not like Nintendo) is considered negatively attributable to low worth.
