Kohei Ikeda, the director behind the Tekken series, has officially joined SNK, reuniting with former Bandai Namco colleagues, including Katsuhiro Harada, to establish a new fighting game division. This move comes at a turbulent time for SNK, which is reportedly grappling with substantial financial difficulties.
According to reports, SNK's revenue saw a ten percent increase over the past year. However, this growth has been overshadowed by a widening deficit, resulting in a net loss of nearly $140 million, a significant increase from the previous year. The company relies on substantial loans from its parent, the Saudi Crown-owned Electronic Gaming Development Company, which has reportedly been reallocating funds to other ventures, such as a stake in Capcom.
In response to these financial pressures, SNK has taken steps to streamline its operations. This week, the company dissolved SNK Entertainment, a subsidiary created in 2016 to manage licensing deals and collaborations using SNK intellectual property. While its functions have reportedly been integrated into other departments since 2022, the formal dissolution signals a broader corporate restructuring.
SNK is actively reshuffling its internal structure, notably with the formation of VS Studio in Tokyo last May, led by Katsuhiro Harada. While no specific game projects have been announced, the recruitment of prominent figures from the Tekken development team suggests a focused effort on fighting games. Ikeda expressed his enthusiasm for the new venture, stating, "Working on games again with two of my former bosses feels nostalgic... the excitement of creating something completely new makes every day incredibly fulfilling. I’m really looking forward to seeing what we can create together!"
The broader financial landscape surrounding SNK's parent company also warrants attention. Despite market fluctuations, the Electronic Gaming Development Company, associated with Saudi Crown Prince Mohammed bin Salman, has shown increasing interest in the fighting game genre. This includes a five percent stake in Capcom, the creators of Street Fighter, and control of the Evolution Championship Series (Evo), a move that has generated debate among players regarding the perception of 'sportswashing' within the esports community.