Sonic the Hedgehog creator Yuji Naka arrested for insider trading

Yuji Naga, the creator of Sonic the Hedgehog, and the former chief of development Sonic Team has been charged with insider trading. FNN in Japan first reported the news. The Asahi Shimbun published an English-language report corroboratifying it.

Based on information, Naka may have purchased stock in Aiming developer in 2020. This is according to insiders who claim that the company would be creating a Dragon Quest mobile gaming app. Dragon Quest Tact. At the time, publisher Square Enix’s partnership with Aiming on the game was not yet public, and Naka was working at Square Enix on ill-fated platformer Balan Wonderworld.

According to the Tokyo District Public Prosecutors Office’s special investigations, Naka bought 10,000 shares of Aiming after hearing about the 2.8 million yen ($20,000). Dragon Quest TactEnde January 2020, shortly before the public announcement of game in the following month. The assumption is that he was hoping to profit from an increase in the share price after the announcement and release of the game — although based on current reporting, it’s not clear if he did sell the shares.

Naka’s arrest Friday follows those of two other former Square Enix employees a day earlier on the same charges. Investigators believe that Taisuke Suzuki and Fumiaki Suzuki bought Aiming stocks worth 47 million yen ($336,000). This was after Suzuki discovered of the purchase. Dragon Quest Tact’s existence in November 2019.

The Asahi Shimbun reports that Suzuki and Sazaki sold their Aiming shares following the announcement. Dragon Quest TactProfits totalling tens to millions of Japanese yen were made in February 2020. The paper’s sources also say that Sazaki was actually a member of the joint development team working on Dragon Quest Tact. Sazaki received a “Special Thanks” mention in the credits for Balan Wonderworld.

Square Enix was contacted by Polygon to provide comment. The company issued a statement to VGC on Thursday, regarding the arrests made by Sazaki, and Suzuki.

Some media outlets today reported that Square Enix’s former employees were being investigated for insider trading. The Securities and Exchange Surveillance Commission has requested that we cooperate fully. The Tokyo District Public Prosecutors Office has begun an investigation. We are fully cooperating with this investigation. All parties are deeply sorry for the concern. This incident was dealt with strictly. We also took internal disciplinary action against those involved.

Naka created Sonic the Hedgehog, the Sega mascot together with Naoto Okshima. I was the lead programmer of the original 1991 version. Sonic the Hedgehog and its sequels, it was Naka’s code that enabled the game’s signature fast-moving, fluid visuals. After leaving Sega, Naka worked as an independent developer for a time before joining Square Enix. In 2018, he joined Square Enix to continue developing the game with Ohshima. Balan Wonderworld.

But the game’s development didn’t go well. Balan WonderworldIt was released March 20, 2021 to poor reviews and controversy over seizure-inducing flashing scenes. In April 2022, Naka revealed that he had been kicked off the project six months before its release, said he had sued Square Enix over his departure, and apologized to fans for the “unfinished” state of the game.