It’s official: Yuji Naka, best known as the co-creator of Sonic the Hedgehog and Nights into Dreams, has been sentenced to prison and fined millions of yen. According to Jiji Press, a news agency in Japan, Naka is serving two-and-a-half years in prison and is suspended for four years. In addition, he’s fined two million yen (about $14,000) and 171 million yen (about $1.1 million).
This sentence happened as a result of Naka buying shares after learning about two new mobile games in development by Square Enix, Final Fantasy VII: The First Soldier and Dragon Quest Tact. Between both titles, Naka bought 130,000 shares from 2020 to 2021 at about 147 million yen (about $1 million). Because Naka purchased these shares with non-public information, he performed insider trading which is illegal in Japan.
How did Yuji Naka Get Here?
It all started in late January 2020 when Naka, employed at Square Enix, learned about Dragon Quest Tact before it was formally announced. Naka then proceeded to purchase 10,000 shares from Aiming Inc., the development studio working on Dragon Quest Tact alongside Square Enix. This resulted in an arrest in November 2022. Naka would be arrested again the following month for suspicions of insider trading with Final Fantasy VII: The First Soldier.
Naka purchased shares from the developers working Final Fantasy VII: The First Soldier, Ateam Inc. in February 2021. Instead of 10,000 shares, Naka purchased 120,000 shares from Ateam Inc. which resulted in his arrest in December 2022. Back to back, Naka purchased shares from the mobile game developers before the games were formally announced, making it insider trading.
Related: SEGA’s Sonic Origins Plus Launches Today – More Classic Sonic the Hedgehog Has Arrived!
Aside from his insider trading, Naka has been in the news for his work on Balan Wonderworld, a spiritual successor to Nights into Dreams. Not only did the 2021 game receive poor reception from critics and gamers alike, news released afterwards on Naka’s involvement with the title. He was issued a work order six months before Balan Wonderworld’s release, removing him as director. Naka then sued Square Enix to take them to court.
After the trial, the order was released and lost all of its effect. Fans speculated if Naka’s six months away from Balan Wonderworld resulted in the unfinished product. Naka felt sorry about the final product of Balan Wonderworld and wanted to release it in a more finished state. What do you think about Yuji Naka’s arrest? Do you have any fond memories with Sonic the Hedgehog, Nights into Dreams, or even Balan Wonderworld? Let us know in the comments!
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