Video game vender Digicube Co. said Wednesday it has filed for bankruptcy with liabilities of 9.5 billion yen, battered by a shrinking game software market.
The company said postponement of the release of the popular "Final Fantasy XII" helped push it over the brink.
Set up in February 1996 as a wholly owned subsidy of game maker Square Co., Digicube expanded its business as a wholesaler of game software and other entertainment content to 23,000 convenience stores.
From the peak in fiscal 1997, the company's sales plunged by some 70 percent to 2.42 million games during the year ended in March, it said.
"Our clients at convenience stores are typically casual game players, and that's the market that takes a dive first," said company President Masamichi Someno.
He added that the postponement of the hit role playing game Final Fantasy XII from the initially scheduled spring of next year to summer dealt a one-two punch to the firm. The series is made by Square Enix Co., Digicube's largest shareholder.
For the current fiscal year, it expects a net loss of 2.7 billion yen. This will likely leave the firm with liabilities exceeding assets.
Major shareholders of the company, listed on the Osaka Securities Exchange's Hercules market, now include video rental chain Culture Convenience Club Co. and major game software makers.