"Following a first quarter earnings report showing declining sales and earnings, Nippon Ichi issued a statement today saying that it will be incurring a special loss as it cancels three consumer game projects."
"The three titles were in development since last year. The company determined that achieving sales and maintaining quality for the games could end up being difficult."
"Due to the cancellations, Nippon Ichi will incur a one time ¥21 million yen loss."There is no indication which games were cancelled, and it's possible that they were unannounced titles. This is all despite the games division turning a slight profit. Despite all this, Criminal Girls will still be released.
I don't think this is as bad as it's being made out to be. A ¥15m loss is never a good thing, but it's not like Nippon Ichi is on the verge of death. Their JASDAQ stock is still just a shade below ¥30,000 - about $350 - so the company, though it had a rough time of it, is still doing OK. It might have no choice but to pull back a bit, meaning we wouldn't see as many games like Cross Edge or Trinity Universe, but this isn't the death kneel that some sites are reporting it to be.