Tecmo shares drop after Itagaki’s departure

Thursday, Jun. 5 2008 | Author: Mel

I basically pooh-poohed the news of Ninja Gaiden creator Tomonobu Itagaki’s leaving Tecmo and suing the game company for allegedly not paying bonuses promised to him, an amount that totals $1.4 million.

Apparently, stock owners think that the news is far more important than I do as shares of Tecmo stock at the Tokyo Stock Exchange dropped. Tecmo shares closed at $10.40 last Tuesday, June 3. When it opened the following day, share prices have gone down to $9.30, a significant 10 percent drop. Just yesterday, Tecmo shares closed at $9.27.

It is amazing that the departure of such a controversial figure like Itagaki–who is well known for being egotistical and has even been involved in a sexual harrassment case– will be felt even at the Tokyo Stock Exchange. Video games as an industry has really solidified its status as the biggest entertainment sector in the world today.

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One Response for "Tecmo shares drop after Itagaki’s departure"

Mr Butterscotch

June 6th, 2008 at 10:17 am
1

Totally agreed.

Whilst Itagaki sounds a bit of a character, he’s clearly become a celebrity games developer. His productions have been some of the most famous in the history of the Xbox and Ninja Gaiden 2 has been met with good (if not critically acclaimed) reviews.

Thus, if investors see the guy who they know can deliver the goods (regardless of temperament) leave, they become a little concerned that perhaps the winning success and formula of the company has left too. Unfair? Possibly. Demonstrating the new power and talent of games developers? Definitely.