It would seem that rather than dead, Aruze's interests for the coin-op market are alive and well, if only hibernating, and they see themselves as the only providers of games for the SNK platforms, even though they have signed agreements with companies in Korea and Japan to develop licenses held by SNK. The company, like many of the older manufacturers in video amusement, perceive not only the properties, but also released cabinets as directly still owned by their manufacturer.
It is with some extreme feelings that Aruze greeted recent trade reports that a UK company was thinking of adding their name to the list of developers for the MVS platform. Adding insult to injury, the company (VektorLogic) has also claimed to be working on an open architecture development environment for other game companies to follow their lead and create their own games. It has been circulated that upon hearing this news, Aruze through SNK has started to gather legal advice towards stopping VektorLogic from releasing their first game in October in England. Aruze has also made it clear that they will not tolerate any U.S. "Grey Imports" (the name given to outside manufactured products) by SNK supporters.
In an industry hungry for any content, it seems absurd that there should be arguing over games that could help the industry generate badly needed revenue, especially from an amusement manufacturer that is in hibernation regarding the support of new releases. But just to address the questions regarding the legal position (on a International footing), a list of areas that could be breached by new software that could activate legal action has been passed to the REPORT:
Use of Neo Geo or SNK proprietary libraries and source code
Use of Neo Geo or SNK logos or IP (Intellectual Properties)
Use of proprietary SNK MVS hardware features in cartridge design
Tampering with SNK warranty on MVS units by unsupported components
It is obvious that the proposed 3rd Party software will avoid booting up with the memorable Neo Geo loading screen and tune, or will attempt to release their version of an SNK branded property. But in manufacturing cartridges to be able to work with MVS systems in the field, these hopeful game providers will be in danger of breaking at least the first, third and forth points of Aruze¹s ownership.
Those in the Japanese amusement sector see Aruze's threats of legal action as attempting to stop game developers from poaching their property, an analogy given by one Japanese source was described as such:
"SNK and the MVS are like a famous bar that needs renovation, Aruze being the landlord who wants to close it down and turn it into a restaurant, but needs money. The new game developers are like regular drinkers in the bar wanting to still use it to drink in and for parties!"
Away from all this talk of bars and drinking, some new rumors could prove Aruze¹s commitment to the platform. As reported previously, it seems that more light is being shed on a MVS version of the Capcom vs. SNK series. It was originally promised in 1999 that then SNK would release their own version of the fighting game for their own loyal Neo Geo followers. As Capcom¹s fighters have now moved onto the Naomi platform and away from the CPS3 architecture, it has been rumored that the code can now be transferred to other hardware and that the company is investigating a MVS release to make use of the 110,000 MVS platforms in circulation. This rumor has to be treated as still highly volatile, as many things could change Capcom and Aruze¹s minds regarding spending on a sequel rather than a new title. One unlikely source has even gone as far as suggesting that rather than continuing to place investments in a platform that will be celebrating its twelfth birthday in a matter of months, Aruze may actually consider a Capcom alliance towards a Naomi release of the King of Fighter 2001, under development between BrezzaSoft and Eolith.
Games that have been rumored to be considered for a possible release on the MVS continues to grow. A list is supplied below, however the REPORT would like to repeat that it treats much of this list as highly skeptical, and waits more attributable sources to confirm the games:
Capcom vs. SNK 2
Aruze/Capcom
King of Fighters 2001
Aruze/Eolith (BrezzaSoft)
Samurai Showdown V
Aruze/TBA
Data East¹s Ghost Lop
Aruze/Data East
Crystal of Kings
Aruze/BrezzaSoft
Garou: Mark of the Wolves 2
Aruze/Arc System Works
Neo Sparks
VektorLogic
The reason why we know so much is that Aruze has been forced to come clean about its position and the long term debt management following the collapse of SNK, not by a sense of responsibility, but because of share holder pressure which has been bubbling like a badly sealed pressure cooker. It would seem that following the December 1999 51% stock purchase by Aruze, a number of key shareholders have been concerned that Aruze and 5 executives of SNK were working against the companies (SNK) best interest.
The situation reached criticality with the rebellion of shareholders actually filling suit against Aruze and these executives for damages of over 27.5 billion yen, culminating on the bankruptcy in October 2001. This amazing undertaking was kept under wraps until Azure's hand was forced following leaks to Japanese media that the situation existed. The poor maintenance of the of the intellectual properties (IP) of SNK, including the closure (and death) of the Pocket Neo Geo which had a strong following worldwide; the selling of key licenses, in some cases to Aruze for a pittance if any payment, and the foot dragging regarding creating a climb back plan for SNK are all examples that the plaintiffs see as neglect, if not ulterior motives.
What Could This all Mean:
It is doubtful that SNK / Aruze will reach the courtroom regarding the accusation and the filed lawsuit. It is hoped that some compromise will be agreed before the dogs are let loose. At the heart of the complaints seems to be a growing undercurrent of new SNK related projects that will bring profits and revenue in to the manufacturers but the originator (SNK and its ex-talent pool) will see nothing adding to the bad feeling by investors in the company.
For many in the Japanese amusement sector Aruze represents a loose cannon. The company having already lost one lawsuit (reported in trade journal Game Machine). Aruze is no stranger to legal assaults recently being successfully attacked by a pachinko operation regarding a purported assault on their reputation by a comment made by Azure's president, at a time commenting on a further assault by Sammy regarding practices (which resulted in a 2 million Yen settlement). The failure of Azure's executive board -- showing a startlingly inability to handle themselves at such a vital point in the company's history resulting in Aruze fumbling their response to this claim, in a suit that was similar to that later proposed by ex SNK stock holders who want slightly more in their settlement.
Future Opportunities
As with the previous REPORT coverage concerning opportunities with Midway after their abandonment of amusement, the list of "vampires"living off of the dead body of another ex amusement company (SNK), where so many experts and executives said there was nothing to be salvage, seems to be all too familiar:
MegaKing - Metal Slug 4
This low key Korean company has suddenly run a web site and spoken to a number of distributors towards the release of the sequel to the extremely popular horizontal shooter. The game was reported to have been in development right up to the demise of the R&D section of SNK, a victim of the "march of death" to the Aruze offices. The appearance of a web site, some images form the previous series and some badly translated copy still can be treated as fact, but as with King of Fighter 2001, some attention has to be paid to such claims.
However there has been no confirmation from any sources at SNK if the IP for MS4 has been sold or rewarded to an outside company. Another Korean web site has also announced a game called Towak that looks remarkably similar to Metal Slug, and will be on a copy Neo Geo cartridge, but again who actually owns the IP license is another matter. Rumors from sources that leaked the KOF í01 leak have suggested that Sun Amusement has placed a MS4 release on their release schedule for next year.
Sun Amusement / Eolith / BrezzaSoft - King of Fighters 2001
Just to confirm what was speculated in previous Reports, KOF'01 will be making the move to the Neo Geo MVS market under the tutorship of Eolith, who will be using the services of Sun Amusement in Asia to distribute the game (who have already started their Asian marketing/ advertising campaign). The company consists a number of ex SNK staff members and has experience at selling this style of product. Apple Industries in America has laid claim to the North American release of the game, however Sun Amusement have already made noises that they have not yet made final decisions regarding this. To be honest this is one of the most anticipated "underground"titles to hit the amusement sector in a while, for many operators they may miss this game as their "core players"salivate at all the web based screen shots and video. A game that could easily captivate the main revenue of the fighting fan for 2001 and 2002, and is still up for grabs regarding its International distribution.
Capcom -Capcom Vs. SNK 3
One of the most controversial games to emerge from Capcom, coming on the back of the collapse of the SNK, Capcom seemed to release news that they were still working on a sequel to the popular twining fighting games. For SNK the lack of R&D resources showed in the previous game (Capcom Vs. SNK 2) with Capcom artists and developers having to do the lion's shareof the work to complete the game, only to have SEGA of America handle the final US release. Complaints that Capcom is using the SNK IP without paying a fair share for the usage of such an important library of licenses (including KOF characters) have surfaced, only to fuel speculation in a possible collision with the new owner of the KOF characters. With the doors closed at SNK HQ, the word on the street is a major stock taking underway towards assets available for sale within the husk that was SNK. The sale of valuable IP's will see Capcom involved in the auction, but a possible loss of the KOF IP would see Capcom paying a third party royalties, which is hard to believe.
But in the death throes of the MVS SNK platform a new opportunity exists for a new system to step into the vacuum hoping to offer a sensible alternative to the lose of the Neo Geo. The launch of the the BrezzeSoft development Crystal System hoping to be that platform, (information clarified by the web site (and previous home of the REPORT) ñ Eventgaming.com, from a whirlwind of misinformation):
BrezzeSoft -Crystal of King
The game was created by the company that comprises a lifeboat of ex SNK R&D developers. The product was rumored to have been a concept that was being considered by SNK but was abandoned when thing started to unravel in 1999. The game had been rumored to be an independent Neo Geo MVS cartridge release, but now following further revelations, it has been confirmed that the game (again on Apple Industries hit list for North American distribution) is to be released on a system called the 'Crystal System'. The lack of investment in the more than ten-year-old SNK Neo Geo MVS soured the developers interest in supporting it, and has in fact resulted in the development of a follow-on architecture. The Crystal System is reputed to be a piggyback cartridge system similar in construction to the Neo Geo MVS or CPS 2, but supporting a JAMMA2 route to market. The Golden Axe project is said to be a very interesting release, coming from a linage of strong SNK game designing.
Following on from the creation of a proposed successor to the Neo Geo MVS, it would seem to have been adopted by many of the new and hungry independent developers of the Crystal System:
Evoga Entertainment -Evolution Soccer
The football game developed by the Mexican developer was originally proposed as a sequel to the popular Neo Geo MVS Super Sidekicks series, to be released as a Mexican and International football game. Supporting the Crystal System, the product hopes to compete directly with the graphic heavy SEGA Virtua
Soccer 3 content with an intensive football game for the hard-core player.
Away from all these individual titles; the outstanding issue of the well-received UltraCade Neo Geo system, previewed at AMOA the Hyperware concept encouraged by Apple Industries has been left in the air as SNK came apart during the release of the system. With rumors of counterfeit systems incorporating MAME ROM images of SNK games appearing on the black market. It would be a shame if legitimate sources of revenue were cast aside by Gray imports and counterfeit. But more importantly, in reality, the aged MVS may just fade away in the face of a successor with NEW games, proposed by the Crystal System.
It is with some extreme feelings that Aruze greeted recent trade reports that a UK company was thinking of adding their name to the list of developers for the MVS platform. Adding insult to injury, the company (VektorLogic) has also claimed to be working on an open architecture development environment for other game companies to follow their lead and create their own games. It has been circulated that upon hearing this news, Aruze through SNK has started to gather legal advice towards stopping VektorLogic from releasing their first game in October in England. Aruze has also made it clear that they will not tolerate any U.S. "Grey Imports" (the name given to outside manufactured products) by SNK supporters.
In an industry hungry for any content, it seems absurd that there should be arguing over games that could help the industry generate badly needed revenue, especially from an amusement manufacturer that is in hibernation regarding the support of new releases. But just to address the questions regarding the legal position (on a International footing), a list of areas that could be breached by new software that could activate legal action has been passed to the REPORT:
Use of Neo Geo or SNK proprietary libraries and source code
Use of Neo Geo or SNK logos or IP (Intellectual Properties)
Use of proprietary SNK MVS hardware features in cartridge design
Tampering with SNK warranty on MVS units by unsupported components
It is obvious that the proposed 3rd Party software will avoid booting up with the memorable Neo Geo loading screen and tune, or will attempt to release their version of an SNK branded property. But in manufacturing cartridges to be able to work with MVS systems in the field, these hopeful game providers will be in danger of breaking at least the first, third and forth points of Aruze¹s ownership.
Those in the Japanese amusement sector see Aruze's threats of legal action as attempting to stop game developers from poaching their property, an analogy given by one Japanese source was described as such:
"SNK and the MVS are like a famous bar that needs renovation, Aruze being the landlord who wants to close it down and turn it into a restaurant, but needs money. The new game developers are like regular drinkers in the bar wanting to still use it to drink in and for parties!"
Away from all this talk of bars and drinking, some new rumors could prove Aruze¹s commitment to the platform. As reported previously, it seems that more light is being shed on a MVS version of the Capcom vs. SNK series. It was originally promised in 1999 that then SNK would release their own version of the fighting game for their own loyal Neo Geo followers. As Capcom¹s fighters have now moved onto the Naomi platform and away from the CPS3 architecture, it has been rumored that the code can now be transferred to other hardware and that the company is investigating a MVS release to make use of the 110,000 MVS platforms in circulation. This rumor has to be treated as still highly volatile, as many things could change Capcom and Aruze¹s minds regarding spending on a sequel rather than a new title. One unlikely source has even gone as far as suggesting that rather than continuing to place investments in a platform that will be celebrating its twelfth birthday in a matter of months, Aruze may actually consider a Capcom alliance towards a Naomi release of the King of Fighter 2001, under development between BrezzaSoft and Eolith.
Games that have been rumored to be considered for a possible release on the MVS continues to grow. A list is supplied below, however the REPORT would like to repeat that it treats much of this list as highly skeptical, and waits more attributable sources to confirm the games:
Capcom vs. SNK 2
Aruze/Capcom
King of Fighters 2001
Aruze/Eolith (BrezzaSoft)
Samurai Showdown V
Aruze/TBA
Data East¹s Ghost Lop
Aruze/Data East
Crystal of Kings
Aruze/BrezzaSoft
Garou: Mark of the Wolves 2
Aruze/Arc System Works
Neo Sparks
VektorLogic
The reason why we know so much is that Aruze has been forced to come clean about its position and the long term debt management following the collapse of SNK, not by a sense of responsibility, but because of share holder pressure which has been bubbling like a badly sealed pressure cooker. It would seem that following the December 1999 51% stock purchase by Aruze, a number of key shareholders have been concerned that Aruze and 5 executives of SNK were working against the companies (SNK) best interest.
The situation reached criticality with the rebellion of shareholders actually filling suit against Aruze and these executives for damages of over 27.5 billion yen, culminating on the bankruptcy in October 2001. This amazing undertaking was kept under wraps until Azure's hand was forced following leaks to Japanese media that the situation existed. The poor maintenance of the of the intellectual properties (IP) of SNK, including the closure (and death) of the Pocket Neo Geo which had a strong following worldwide; the selling of key licenses, in some cases to Aruze for a pittance if any payment, and the foot dragging regarding creating a climb back plan for SNK are all examples that the plaintiffs see as neglect, if not ulterior motives.
What Could This all Mean:
It is doubtful that SNK / Aruze will reach the courtroom regarding the accusation and the filed lawsuit. It is hoped that some compromise will be agreed before the dogs are let loose. At the heart of the complaints seems to be a growing undercurrent of new SNK related projects that will bring profits and revenue in to the manufacturers but the originator (SNK and its ex-talent pool) will see nothing adding to the bad feeling by investors in the company.
For many in the Japanese amusement sector Aruze represents a loose cannon. The company having already lost one lawsuit (reported in trade journal Game Machine). Aruze is no stranger to legal assaults recently being successfully attacked by a pachinko operation regarding a purported assault on their reputation by a comment made by Azure's president, at a time commenting on a further assault by Sammy regarding practices (which resulted in a 2 million Yen settlement). The failure of Azure's executive board -- showing a startlingly inability to handle themselves at such a vital point in the company's history resulting in Aruze fumbling their response to this claim, in a suit that was similar to that later proposed by ex SNK stock holders who want slightly more in their settlement.
Future Opportunities
As with the previous REPORT coverage concerning opportunities with Midway after their abandonment of amusement, the list of "vampires"living off of the dead body of another ex amusement company (SNK), where so many experts and executives said there was nothing to be salvage, seems to be all too familiar:
MegaKing - Metal Slug 4
This low key Korean company has suddenly run a web site and spoken to a number of distributors towards the release of the sequel to the extremely popular horizontal shooter. The game was reported to have been in development right up to the demise of the R&D section of SNK, a victim of the "march of death" to the Aruze offices. The appearance of a web site, some images form the previous series and some badly translated copy still can be treated as fact, but as with King of Fighter 2001, some attention has to be paid to such claims.
However there has been no confirmation from any sources at SNK if the IP for MS4 has been sold or rewarded to an outside company. Another Korean web site has also announced a game called Towak that looks remarkably similar to Metal Slug, and will be on a copy Neo Geo cartridge, but again who actually owns the IP license is another matter. Rumors from sources that leaked the KOF í01 leak have suggested that Sun Amusement has placed a MS4 release on their release schedule for next year.
Sun Amusement / Eolith / BrezzaSoft - King of Fighters 2001
Just to confirm what was speculated in previous Reports, KOF'01 will be making the move to the Neo Geo MVS market under the tutorship of Eolith, who will be using the services of Sun Amusement in Asia to distribute the game (who have already started their Asian marketing/ advertising campaign). The company consists a number of ex SNK staff members and has experience at selling this style of product. Apple Industries in America has laid claim to the North American release of the game, however Sun Amusement have already made noises that they have not yet made final decisions regarding this. To be honest this is one of the most anticipated "underground"titles to hit the amusement sector in a while, for many operators they may miss this game as their "core players"salivate at all the web based screen shots and video. A game that could easily captivate the main revenue of the fighting fan for 2001 and 2002, and is still up for grabs regarding its International distribution.
Capcom -Capcom Vs. SNK 3
One of the most controversial games to emerge from Capcom, coming on the back of the collapse of the SNK, Capcom seemed to release news that they were still working on a sequel to the popular twining fighting games. For SNK the lack of R&D resources showed in the previous game (Capcom Vs. SNK 2) with Capcom artists and developers having to do the lion's shareof the work to complete the game, only to have SEGA of America handle the final US release. Complaints that Capcom is using the SNK IP without paying a fair share for the usage of such an important library of licenses (including KOF characters) have surfaced, only to fuel speculation in a possible collision with the new owner of the KOF characters. With the doors closed at SNK HQ, the word on the street is a major stock taking underway towards assets available for sale within the husk that was SNK. The sale of valuable IP's will see Capcom involved in the auction, but a possible loss of the KOF IP would see Capcom paying a third party royalties, which is hard to believe.
But in the death throes of the MVS SNK platform a new opportunity exists for a new system to step into the vacuum hoping to offer a sensible alternative to the lose of the Neo Geo. The launch of the the BrezzeSoft development Crystal System hoping to be that platform, (information clarified by the web site (and previous home of the REPORT) ñ Eventgaming.com, from a whirlwind of misinformation):
BrezzeSoft -Crystal of King
The game was created by the company that comprises a lifeboat of ex SNK R&D developers. The product was rumored to have been a concept that was being considered by SNK but was abandoned when thing started to unravel in 1999. The game had been rumored to be an independent Neo Geo MVS cartridge release, but now following further revelations, it has been confirmed that the game (again on Apple Industries hit list for North American distribution) is to be released on a system called the 'Crystal System'. The lack of investment in the more than ten-year-old SNK Neo Geo MVS soured the developers interest in supporting it, and has in fact resulted in the development of a follow-on architecture. The Crystal System is reputed to be a piggyback cartridge system similar in construction to the Neo Geo MVS or CPS 2, but supporting a JAMMA2 route to market. The Golden Axe project is said to be a very interesting release, coming from a linage of strong SNK game designing.
Following on from the creation of a proposed successor to the Neo Geo MVS, it would seem to have been adopted by many of the new and hungry independent developers of the Crystal System:
Evoga Entertainment -Evolution Soccer
The football game developed by the Mexican developer was originally proposed as a sequel to the popular Neo Geo MVS Super Sidekicks series, to be released as a Mexican and International football game. Supporting the Crystal System, the product hopes to compete directly with the graphic heavy SEGA Virtua
Soccer 3 content with an intensive football game for the hard-core player.
Away from all these individual titles; the outstanding issue of the well-received UltraCade Neo Geo system, previewed at AMOA the Hyperware concept encouraged by Apple Industries has been left in the air as SNK came apart during the release of the system. With rumors of counterfeit systems incorporating MAME ROM images of SNK games appearing on the black market. It would be a shame if legitimate sources of revenue were cast aside by Gray imports and counterfeit. But more importantly, in reality, the aged MVS may just fade away in the face of a successor with NEW games, proposed by the Crystal System.
