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Tecmo shares plummet on Itagaki departure

Company's stock appears more dead than alive despite reassurances that major franchises including Ninja Gaiden will continue.

Just days before the release of Ninja Gaiden II, game creator Tomonobu Itagaki announced that he would be leaving Tecmo and suing the company for unpaid bonuses. Itagaki, the chief of Tecmo's internal development studio, claimed the company owed him over a million dollars--¥148 million ($1.4 million) to be exact.

Oh Dear. <em>Image from BusinessWeek Stock Quotes & Company Profile.</em>.

Oh Dear. Image from BusinessWeek Stock Quotes & Company Profile..

Itagaki apologised to fans for his departure, saying that he was sorry he would not get the opportunity to make Dead or Alive 5 or continue on with the Ninja Gaiden story. However, Tecmo responded yesterday by announcing that far from abandoning the two famous franchises, it had several new games in development for both of them. It also added that, contrary to widespread belief, Team Ninja--the studio Itagaki headed up--would not be disbanded after the main man left the building.

However, this wasn't enough to stop Tecmo shares from plummeting on the Tokyo Stock Exchange. At the market close on Tuesday, June 3, shares were trading at ¥1,102 ($10.40). When they opened on Wednesday, June 4, after the news hit, they had fallen to ¥985 ($9.30), a drop of over 10 percent. They closed today at ¥982 ($9.27), with the day's high being ¥1,005 ($9.49) and the low being ¥975 ($9.20).

164 Comments

  • cacaymierda8504

    Posted Jul 9, 2008 11:46 am GMT

    Good thing that piece of **** is leaving the company. His story sucked ass any way! I hope the next director can come up with a much better story rather than that bull crap Itagaki came up with!

  • tuffguy121

    Posted Jun 22, 2008 1:10 am GMT

    yeah, im sure it has nothing to do with the fact that the game SUCKS!!!!!

  • yoyo_beats

    Posted Jun 18, 2008 1:16 pm GMT

    true markets rise and fall but seeing that ng2 is very popular its kind of weird for it fall that fast and tecmo is losing more money now that other members are doing the same as itagaki i guess its safe to say itagaki closed the door for tecmo doa5 some how team ninja maybe be able to buy the contract from tecmo it would be a huge relief if microsoft actually buys out tecmo

  • catdadanddog

    Posted Jun 12, 2008 3:33 am GMT

    Markets rise and fall and it has nothing to do with some guy pouting. With rising gas prices and rising food prices expect industries like video games and movies to suffer

  • Ric_SlayeR

    Posted Jun 10, 2008 1:12 pm GMT

    WTF!! Does this means there its not going to be another Dead or ALive game?? And what about DOA 5??

    Plz I want another DOA Xtreme game!!!

  • deadstarr

    Posted Jun 10, 2008 5:30 am GMT

    I bet Itagaki is sitting in his bed of money right now, laughing his ass off at the Tecmo bigwigs. They're going to lose way more than they would of if they had just paid his bonus now aren't they. n00bs.

  • N-Thrax

    Posted Jun 9, 2008 4:59 am GMT

    *glares at stock chart*
    Owch baby. Thats gonna sting.

  • NamcoKun

    Posted Jun 9, 2008 4:14 am GMT

    ;__;

  • ReaperWeed

    Posted Jun 8, 2008 3:12 pm GMT

    I could've sworn I read somewhere that NG II was the last game in the NG series for the current gen system...yet when I read the article he was planning to continue the NG series?!?....

    o_O;

  • combatsoldier

    Posted Jun 8, 2008 11:22 am GMT

    what goes around comes around its all karma. if you screw someone especially the legendary itagaki for more then a million dollars this is what happens. Mr itagaki is a real ninja with mystikal powers lol. in all seriousness its just karma. but they will not stop making titles like this because its all money baby. pure money. OH YA BROHTER! if they lose this title someone else will pick it up so im not worried.

  • cyw1988

    Posted Jun 8, 2008 9:59 am GMT

    I don't care about those games... what about Fatal Frame!!! Are they going to dash my dream for a PS3 fatal frame?! =(

  • d3f1anc3

    Posted Jun 8, 2008 4:06 am GMT

    And thats what happens when the lead developer of the company throws you the finger because you violate contract.

    Or something like that.

    TeamNINJA is basically dead without him. And the franchises that go along with it.

  • PixyMisao

    Posted Jun 7, 2008 2:35 pm GMT

    A 100 point drop really isn't all that much these days in this chaotic market, well... maybe it is in Japan. Truth be told though I thought that it would drop even further.

  • Azu32

    Posted Jun 7, 2008 1:45 pm GMT

    Even with that announcement Tecmo can't fix what it did, now we can see the Stock Exchange and the business world answering to Tecmo's mistake of not giving Itagaki what he deserved.

  • peeweeshift

    Posted Jun 7, 2008 8:03 am GMT

    his team wont be the same. they might work well and make some amazing games but his touch and words on them made the games epic. doa4 is still widely played unlike vf5

  • sunilian

    Posted Jun 7, 2008 2:15 am GMT

    Man this is like WOW.......................whats gonna happen next. who is gonna run team ninja and what wull happen to Tomonobu Itagaki.

  • Jebril

    Posted Jun 7, 2008 1:27 am GMT

    I can't see a game creator as big as Itagaki just walk out on his company for no reason there was obviously something there that made him leave, and it probably was a bigger deal than just the money they owed him.

  • Sacapalpavo

    Posted Jun 6, 2008 11:03 pm GMT

    It's sad not only since he is the creator of 2 of my favorite franchises, but for the franchises itself, if Itagaki's hands are no longer involved, who knows what the newbies will try, or Tecmo let them do... On the other hand, they do really need a new graphic motor, they do look a lot like the previous versions, the graphics for these both franchises in the Xbox were amazing! but for the 360 they are just above average (gameplay is still the best), i hope Itagaki get a deal with MS since i only own a 360 xD but either way i just hope he keeps doing games, but i think he has an understanding with MS already, you don't quit your job unless you have something else ^.~

  • perryg84

    Posted Jun 6, 2008 10:47 pm GMT

    It is rather unfortunate how Itagaki's departure unfolded. A developer of his caliber needs to be in a comfortable environment in order to excel. Perhaps he will be able to start a studio of his own. The question is who will microsoft support, Itagaki or Tecmo?

    At least we can start a romour tree for a Ninja Gaiden 2 sigma for ps3??? )

  • ahyumifan

    Posted Jun 6, 2008 10:34 pm GMT

    I hope this company runs out of business. Kicking one of the top developers isn't really a great idea.

  • tonicmole

    Posted Jun 6, 2008 9:08 pm GMT

    This will possibly be the best thing that could happen. In the past three xbox360 team ninja games it was obvious that itagaki was either unable or unwilling to advance into next generation gaming. Ninja Gaiden 2 is a prime example. DOA 4 was almost identical to DOA 3 except for a very minor graphical upgrade. With any luck Team Ninja will get a chance to innovate and make truly unique games instead of multiple rehashes.

  • businessfox

    Posted Jun 6, 2008 7:19 pm GMT

    That sucks big time,I just hope they can do something about that situation and fix it up on time before things get wrost for them.

  • Raivon

    Posted Jun 6, 2008 4:24 pm GMT

    Dang ! Their stock is going down the toilet .

  • Delongman

    Posted Jun 6, 2008 2:35 pm GMT

    Unpaid money is the root of all plummeting! Whoa! He's my hero for reviving Ryu into 3D but geez in never thought that one man could have such an influence! Itagaki isn't done yet... ITAGAKI-SAN EVEN IF I HAVE TO WAIT ANOTHER 4 YEARS FOR NG3 I WILL! I dnt care how he does it, but i want (and am sure you do too) to see him back at the drawing boards! Yah i hope it ain't over... i'm sure it ain't over... so please... stop with the "you will be missed Itagaki" and shout "find a new future and respond once again to the fans!"

  • hatieshorrer

    Posted Jun 6, 2008 2:26 pm GMT

    If Itagaki has a legitimate reason for his actions I finally understand why ninja gaiden disappeared for ten years from 1994 - 2004.

  • BigSmitts07

    Posted Jun 6, 2008 1:42 pm GMT

    ouch..theyd better hpe the new eople runningthe show can help these stocks get back up or there company is in trouble...its crazy how one man can have such an infuence on such a large company isnt it?

  • edhc44

    Posted Jun 6, 2008 1:23 pm GMT

    So what?

  • 09231991

    Posted Jun 6, 2008 1:08 pm GMT

    Thank you so much akoolbrother420, again, someone who gets it. Slim02, your the one who needs to shut up because you have no clue what you are talking about. Seriously, go play on the railroad tracks and stop getting involved in conversations you know nothing about:]

  • akiwak

    Posted Jun 6, 2008 10:38 am GMT

    I guess it is a good time to buy their stock. Buy Low!

  • akoolbrother420

    Posted Jun 6, 2008 9:30 am GMT

    We are all gamers guys so let's get along... 09231991/Cashmoney are right it's a publishing deal which is totally different from a exclusive deal. Exclusive deals can either be totally exclusive or have some sort of time-exlcusivity aspect to it, while publsihing deals are a different matter. In this case Microsoft made a publsihing with Tecmo (not Itagaki) to fund development of the game and to publish it, making NG2 a first or second-party game (I always get those confused) to insure it's exclusivity. They did not have a publishing deal with NG1/Black only a exclusive deal, so Tecmo was able to produce Sigma for the PS3 (to Itagaki's dismay). Sigma's production led Microsoft to ink the publsihing deal to prevent NG2 from being produced on another company's console. Now it's up to Tecmo to decide whether future NG titles (NG3 and beyond) will go multiplatform, but it;s pretty much a wrap for NG2 because it would be a total waste of money to secure publishing rights if the game is going to another system. It's basic contract law (I'm currently a business major who will be going to law school to practice patent law) regardless of the details of the contract it's the type of contract that matters and the ball for NG2 is in Microsoft's court.

  • Ahiru-San

    Posted Jun 6, 2008 9:08 am GMT

    so the money tecmo owe him is fair enough - without him it seems they wouldn't have any profit o_O

  • amkalfus

    Posted Jun 6, 2008 8:29 am GMT

    this is a problem for this company... it happens i guess

  • Ranteal

    Posted Jun 6, 2008 8:21 am GMT

    MAKE SENSE WHY THEY WOULD DO THAT, UNDERSTAND NOW OR DO I HAVE TO EXPLAIN AGAIN:]

    Yes, and this time no caps, you angry little man.

  • 09231991

    Posted Jun 6, 2008 7:59 am GMT

    Thank you cashmoney714, someone who finally gets it. Slim02, you are the stupidest person I've ever seen on this site. I'll spell it out in big words so you can understand it, ok. here it goes, MS PAID TECMO MONEY SO THAT IT WOULD FUND THE GAME AND ALLOW MS PUBLISHING RIGHTS SO NOW IF TECMO WANTS IT TO GO MULTI-PLATFORM, THEY WOULD HAVE TO GO THROUGH MS BEFORE THAT BUT IT WON'T HAPPEN BECAUSE MS ALREADY PAID THEM SO IT WOULDN'T MAKE SENSE WHY THEY WOULD DO THAT, UNDERSTAND NOW OR DO I HAVE TO EXPLAIN AGAIN:]

  • Alpha_Omega69

    Posted Jun 6, 2008 5:42 am GMT

    Serves them right imo...

  • R-Force

    Posted Jun 6, 2008 5:36 am GMT

    Tecmo shares plummet on Itagaki departure?

    "Oh, snap!"

  • Shinobi_Daisuke

    Posted Jun 6, 2008 2:30 am GMT

    god tecmo, you greedy *****! i can't believe that you would refuse to pay itagaki. i hope you all now realize the mistake you made because this is only the first of your losses. without DOA and NG your profits will plummet. tecmo's only other popular series was fatal frame and that will never generate enough sales to fund this company. i hope you all get your **** together and work this out because you will lose everything without NG and DOA and quite frankly, you better hope to god NG is continued because millions of people are going to be pissed.

  • kith_kat

    Posted Jun 6, 2008 1:17 am GMT

    they shoulda just paid him cuz now look at how much they're losing

  • cashmoney714

    Posted Jun 5, 2008 11:01 pm GMT

    @Slim02....

    I understand what you are saying and yes it's true, we don't know the extent of the contract. But this isn't some time-exclusive, it's a publishing deal. So anything related to NG2 and it's originality must go through MS. And in turn, I'm sure that every dollar NG2 makes, some of it will go to Tecmo as royalty. I know this sort of copyright law because a buddy of mine does this kind of lawyer-like thingy. And I'm not a fanboy either, my 360 did the red light thingy a month ago so I'm stuck with my ps3. I would love it if NG2 comes out on my ps3 but I know it's not gonna happen. P.S...I hope we can be calm about this and not start hating on each other, this would a stupid reason to argue over. (\(^.~)/)

  • Slim02

    Posted Jun 5, 2008 9:54 pm GMT

    @09231991

    You keep telling yourself that what even tho you have no clue what the deal was.. Until you can prove that the deal is "the way you think it is". You have nothing and are full of BS.. If you can prove what kind of deal was make then you have no clue what you are talking about.. So do you understand that now or do we need to tell you again because your brain is to slow to understand and you can keep being clueless... -----------------------------------------------------------

    Also why do you care if it stay on the 360 or not.. I guessing because you are a fanboy and do not what to see games on other consoles.. I really do not care either way because if the deal is what you think it is.. then I wait to pick it up as USED so they both will not get my money other then the store I get it from...

  • tmorri603

    Posted Jun 5, 2008 8:30 pm GMT

    I should have know this would happen. This guy was in control of 2 of your best IP's and now he is gone. Tecmo is going to have to prove that they can make great Dead or Alive and Ninja Gaiden games without him.

  • Pete5506

    Posted Jun 5, 2008 8:11 pm GMT

    Dang, that is so bad. He will be missed

  • GeigerdolylWodd

    Posted Jun 5, 2008 7:45 pm GMT

    Tomonobu? You bring out the best of people... You will be missed...

  • 09231991

    Posted Jun 5, 2008 7:22 pm GMT

    @ Slim02 and IKKF,

    Its not gonna happen, you still don't understand. I'm tired of explaining this. MS paid Tecmo money, that they agreed to, To Publish the game meaning that MS funded the game for them and in return they have to keep NG 2 as a permanent exclusive and the only way for it to go multi-plat is if both MS and Tecmo have to agree to it, which MS won't because MS already paid the money for it so it wouldn't make sense. Do you understand now? Please tell me you do because this is getting annoying now, seriously:[

  • H-A-V-O-K

    Posted Jun 5, 2008 6:46 pm GMT

    @GeigerdolylWodd and V-Nine:
    Wow you both just gave me mental images i will never ever ever get out of mind...

  • GeigerdolylWodd

    Posted Jun 5, 2008 6:34 pm GMT

    "V-Nine ...the Ozzy Osborne of JP, sigh....

    Posted Jun 5, 2008 8:32 pm CT "

    You know I never really thought of Itagaki that way to me he was more like the Michael Jackson of Japan what with the shades and the long hair minus the feminine laugh.

  • V-Nine

    Posted Jun 5, 2008 6:32 pm GMT

    ...the Ozzy Osborne of JP, sigh....

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