Idol game app firm collapses as data shows bankruptcies up 7% on year
Even as share indexes reach record highs on the back of corporate profits, bankruptcies have also been on the rise amid higher material costs and labor shortages.
A Japanese game app company called ODD No. has filed for bankruptcy protection, marking the latest corporate failure in a wave that has reached a 12-year high. The Tokyo-based company, known for its interactive animation game app Link! Like! Lovelive!, had liabilities totaling ¥10.7 billion ($67.2 million), making it one of the largest bankruptcies in Japan so far this year, according to data from market research firm Tokyo Shoko.
Despite attracting a significant user base, heavy development costs prevented the company from becoming profitable. Corporate bankruptcies in the first half of 2023 rose 7% compared to the previous year, totaling 5,346 cases, the highest since 2013, according to Tokyo Shoko's data. The majority of these failures involved firms with liabilities under ¥100 million, accounting for about 77% of the total.
Information service firms like ODD No. saw an 18.5% increase in bankruptcies, primarily due to their small size and fierce competition in the rapidly evolving tech industry driven by artificial intelligence. The collapse of Zentoshin, an Osaka-based credit card payment processor, last month further highlighted the challenges faced by smaller companies in the face of inflation and labor shortages.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
