SNK Reduce Capital and Capital Reserve by 8,097 Billion Yen

A new report from Gamebiz shows that SNK has recently reported through the Official Gazette (Japanese government publication that covers law and public announcements), that they will be reducing their capital and capital reserves by 8.097 billion JPY, roughly equal to 52 million USD.

There is, frankly, a vast number of reasons for companies to resort to capital reduction, and without SNK themselves commenting on this issue, we can't know for sure why they did this or what repercussions it might have.

However, we can still speculate, given that one of the common reasons is covering for losses, and SNK recently had a very underwhelming launch for Fatal Fury: City of the Wolves, which currently sits at merely 1.8k reviews on Steam, indicating that the sales likely don't match the sort of money that was invested in development, marketing, and esports scene of this game.

This doesn't necessarily spell disaster, given that SNK is currently owned by Saudi Arabian government, which routinely burns far more money for their sports and esportswashing operations. SNK themselves also had a very strong 2024, reporting 12.694 billion JPY net profit.

As such, this situation might not have any real significance when it comes to the future of SNK, yet it could also be another step in a downward trend. This still remains to be seen. Perhaps the upcoming Art of Fighting sequel, and its performance, will be the real deciding factor in what SNK does moving forward.