Tose, one of the co-development studios working on Zelda, Final Fantasy and Resident Evil, reports significant losses due to game cancellations…

You probably don’t know the name, but Tose is a studio credited with big franchises like The Legend of Zelda, Resident Evil, and Final Fantasy, among many others. We are talking about one of the co-development studios that has contributed to the creation of titles, ports and other initiatives created by Japanese studios for 44 years. However, the crisis in the video game industry also affected them.

Looking at the overall picture, one would think that the Tose team fell victim to a wave of layoffs.

However, this trend is not very noticeable in Japan. Instead, companies (especially video game co-developers) suffer from an endless stream of project cancellations. As a result, the Japanese company posted significant losses in its latest financial report for the 2023-2024 financial year.

As initially reported by Automaton, Tose reported a 27.6% drop in net sales (compared to the previous fiscal year’s results) and a loss of ¥367 million, or more than €2 million! According to Tose’s explanation, all this is due to the handful of resignations from which he could not recover financially. Some of these occurred due to changes in customer policy and other factors.

All studios agree that the industry is in a “bad place”

It is well known that the industry is going through very dark times. Uncertainty during production, lack of funding for new projects and waves of layoffs characterize everyday life. And the general mood, as expected, is highly damaging. According to a recent survey, thousands of developers consider the situation “bad”, primarily due to investors and poor management.

Source: Automaton