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Atlus parent company files for bankruptcy

Atlus parent company files for bankruptcy

Thu 27 Jun 2013 3:20pm GMT / 11:20am EDT / 8:20am PDT
Business

Index wants to keep the game business alive, trouble continues for execs

According to CNET Japan, Atlus parent company Index Corporation is filing for government-managed rehabilitation, the Japanese equivalent of bankruptcy. The company owes 24.5 billion yen ($249 million) after a series of acquisitions went south. Index Corporation chief executive officer and president Yoshimi Ogawa Ochiai and Board chairman Masami Ochiai have both expressed their intentions to resign prior to the proceedings.

In a following press release, Index did note that the Atlus brand is profitable and successful. Index is looking for a sponsor or partner as soon as possible so the games division won't be affected by the bankruptcy.

This is not the beginning of Index Corporation's issues. The company posted total revenue of 5.65 billion yen ($57.4 million) with a net loss of 2.263 billion yen ($23 million) for its second fiscal quarter of 2013. According to Siliconera, this left the company with 1.435 billion yen ($14.6 million) in debt.

Index also recently came under investigation by Japan's Securities and Exchange Surveillance Commission for improper accounting via fake transactions, according to a report by AnimeNewsNetwork. The SESC searched Index's Tokyo headquarters and the home of its chairman earlier this month as part of the investigation.

6 Comments

Greg Wilcox Creator, Destroy All Fanboys!

2,193 1,170 0.5
Hmmm... not good news at all. I guess a merger is in order... but we'll see, I guess...

Posted:A year ago

#1

Kareem Merhej Designer, infoLink-inc

21 27 1.3
Certainly Atlus will get picked up by someone... they're way too amazing to just up and vanish.

Posted:A year ago

#2

Greg Wilcox Creator, Destroy All Fanboys!

2,193 1,170 0.5
Oh, I hope to hell so. "Too amazing" hasn't saved other studios in the past from closing and even a boatload of screaming fans can't stop what's taken place that put them in this position. Granted, I've read elsewhere that the news isn't THAT bad, but I'd say try telling that to the folks making the games and maybe wondering if they may be the last ones for a bit...

Posted:A year ago

#3

Carl Crawford Studying Bachelor of Information Technology, Otago Polytehnic

18 19 1.1
No not Atlus :(

Posted:A year ago

#4

Alfonso Sexto Lead Tester, Ubisoft Germany

822 654 0.8
Someone will get them for sure. as the article said, the are profitable.

Posted:A year ago

#5

Peter Dwyer Games Designer/Developer

482 293 0.6
Not too hopeful about this one. The simple truth seems to be that if you sell out to a larger company such as a publisher, you ultimately are sealing your own doom. Even Lucas Arts fell into this trap with Disney. It's the age old story which makes you wonder why the hell these buy ups actually happen. The parent ultimately always end up closing them with a resounding "Games! It's not what we do" attitude or else take the games company down the sink hole with them when they go bankrupt.

Posted:A year ago

#6

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