Granzella Inc., developers of Disaster Report 4 and R-Type Final 2, faces criminal prosecution alongside CEO Takeshi Nagura and two executives for systematically withholding approximately 18.41 million yen ($120k USD) in employee wages spanning May 2023 through late 2025. Ishikawa Prefectural Police referred case January 6 confirming labor violations discovered during routine inspection revealing unpaid salaries across multiple staff members.
Two-Year Payment Crisis
Company admitted May 2023 cash flow crisis prevented salary payments promising resolution by Spring 2026. Labor Standards Inspection Office issued correction order December 2024 after employee complaints revealed systematic withholding affecting programmers, artists, QA testers across Kanazawa headquarters. Criminal referral escalated after company failed compliance deadlines.
Granzella’s former Irem staff foundation – Kazuma Kujo Disaster Report creator, Takeshi Nagura CEO – built reputation reviving canceled franchises post-2011 earthquake. Recent releases R-Type Final 3 Evolved, Side View Golf maintained niche profitability despite financial distress signals missed by industry observers.
Financial Timeline Collapse
| Period | Issue | Action |
|---|---|---|
| May 2023 | Payments halt | Cash flow crisis |
| Dec 2024 | Labor inspection | Correction order |
| Jan 2026 | Prosecution referral | 18.41M yen owed |
Disaster Report Legacy Tarnished
Granzella acquired Disaster Report IP rights 2014 resurrecting canceled titles post-Irem collapse. Disaster Report 4: Summer Memories delivered cult PS4 hit despite cancellation history earning NIS America Western publishing deal. R-Type Final 2 community ship voting, free R-Type Final 3 update established shmup revival credibility now jeopardized.
Studio silence since referral announcement halts Disaster Report 5 development updates, R-Type Tactics Cosmos March 2026 launch uncertainty. Kanazawa headquarters – Ishikawa earthquake rebuilding symbol – faces potential liquidation amid criminal proceedings.
Japanese Industry Precedent
Granzella joins FromSoftware 2013 unpaid overtime scandal, Level-5 2020 contractor disputes establishing criminal liability pattern. Smaller studios vulnerability exposed – Irem alumni exodus post-2011 earthquake created fragile foundations despite IP acquisition successes. Tax authorities scrutinize finances amid bankruptcy rumors.
Employee exodus accelerates – LinkedIn profiles show R-Type programmers joining Cave, Disaster Report artists Studio Pixel. NIS America distances publishing future titles pending legal resolution. Criminal charges carry 3-year imprisonment, 500k yen fines per executive escalating beyond civil penalties.
Community Shockwaves
R-Type Final 2 ship owners question update support viability. Disaster Report cult following fears fifth installment cancellation mirroring series history. Kanazawa local government earthquake recovery funds questioned amid wage diversion suspicions pending audit.
Siliconera confirms CEO statements acknowledging crisis without apology framework. Prosecutorial discretion determines misdemeanor versus felony classification influencing sentences. Studio dissolution imminent absent miracle funding injection.
FAQs
Disaster Report 5 canceled?
No confirmation but criminal charges halt development effectively. IP rights uncertainty post-prosecution.
R-Type Tactics Cosmos March safe?
NIS America publishing insulates somewhat but staff exodus threatens completion.
18M yen amount significant?
$120k USD spans 20+ employees two years confirming systematic withholding beyond cash flow.
CEO imprisonment possible?
3 years maximum per executive plus 500k yen fines. Misdemeanor classification likely first offense.
Irem alumni fate?
Kanazawa exodus – Cave, Studio Pixel absorbing talent. Granzella effectively dissolved.
Western publishing impact?
NIS America distances future titles. R-Type Final 2 support questionable absent staff.
Earthquake funds misused?
Local government audit pending amid recovery symbol collapse.
Conclusion
Granzella’s criminal prosecution over 18.41 million yen withheld wages destroys Disaster Report, R-Type revival legacies built by Irem alumni post-2011 earthquake. CEO Takeshi Nagura, two executives face imprisonment amid Kanazawa studio liquidation trajectory.
Two-year systematic withholding spanning R-Type Final 3, Side View Golf development exposes fragile indie sustainability. NIS America publishing deals endangered, employee exodus complete, criminal precedent established. Japanese gaming loses disaster simulator specialists through self-inflicted catastrophe.