Tecmo’s recent problems have been at the forefront of gaming industry news for several months now. The company has suffered some bad press lately, and not from the media, but rather from within its own organization.

It began with the announced resignation of Tomonobu Itagaki (pictured), head of Team Ninja and creator of Dead or Alive, effective July 1. His resignation was followed by the filing of a complaint in Tokyo District Court against Tecmo and the company’s president, Yoshimi Yasuda, for unpaid completion bonuses. According to Itagaki, prior to beginning work on Dead or Alive 4 for the Xbox 360, Tecmo had agreed to pay him a completion bonus. However, when the time came for payment, Tecmo refused. Itagaki also accuses Yasuda of making demeaning remarks about him to colleagues and subordinates, thereby creating “emotional distress and worsening his personal relationships and work environment,” to the point that he felt he had no choice but to leave the organization.

More recently, in June of this year, two employees filed a suit for unpaid wages. The suit represents 300 Tecmo employees, contending that Tecmo has not been properly compensating their workers for overtime hours. Amidst this flurry of news, it was announced that Tecmo’s board of directors had accepted the resignation of Yasuda, effective September 1.

Needless to say, all this internal turmoil and resulting bad press has had a negative impact on Tecmo’s financial health.

Enter Square Enix, offering a helping hand in the form of a “friendly takeover.” Square Enix has given Tecmo a deadline of September 4 to respond to their offer. The offer praises the creative development of the Tecmo organization and states that positioning Tecmo as a wholly-owned subsidiary of Square Enix will offer Tecmo further opportunities for growth and success.

- Patty Estill