SNK has announced that its CEO will be stepping down, following the release of its heavily marketed latest fighting game.
The company announced that Kenji Matsubara, who joined as CEO in August 2021, will “transition to an advisory role, where he will continue to lend his expertise and vision”. Fatal Fury: City of the Wolves game’s launch did not meet expectations, leading to significant discussions within the gaming industry.
The Build-Up to Fatal Fury: City of the Wolves
Fatal Fury: City of the Wolves revived the classic fighting franchise for the first time in 26 years. Powered by Unreal Engine 4, the game added new systems such as the REV system and included characters from the previous title along with newcomers to the series to the roster for a total amount of 22 characters. The game was published on April 24, 2025, on PlayStation 4, PlayStation 5, Xbox Series X/S and PC.
Aggressive Marketing Strategies
SNK invested heavily in marketing Fatal Fury: City of the Wolves, leveraging various high-profile events and partnerships:
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WWE WrestleMania 41: The game was prominently featured during the event, with the logo displayed in the ring and a performance by DJ Salvatore Ganacci in his Fatal Fury attire.
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Boxing Events: SNK sponsored major boxing matches, including the Chris Eubank Jr. vs. Conor Benn fight, branding them under the Fatal Fury name.
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Celebrity Inclusions: The game featured playable characters like Cristiano Ronaldo and DJ Salvatore Ganacci, aiming to attract a broader audience.
Reception and Sales Performance
Despite the extensive marketing efforts, Fatal Fury: City of the Wolves experienced a lukewarm reception:
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Sales Figures: In Japan, the game sold only 6,302 copies in its first 11 days.
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Steam Performance: The game’s peak concurrent players on Steam reached 4,674, which was lower than its beta performance.
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Critic Reviews: While some praised the game’s mechanics and visuals, others criticized the inclusion of certain characters and questioned the game’s direction.
Kenji Matsubara’s Resignation
On May 14, 2025, SNK announced that CEO Kenji Matsubara would step down and transition to an advisory role. While the company did not explicitly link his resignation to the game’s performance, the timing suggests a connection.
Industry Reactions and Implications
The events surrounding Fatal Fury: City of the Wolves and Matsubara’s resignation have sparked discussions about the gaming industry’s direction:
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Marketing vs. Content: The game’s underperformance despite aggressive marketing highlights the importance of aligning promotional efforts with core gameplay quality.
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Celebrity Involvement: The inclusion of high-profile figures like Cristiano Ronaldo raised questions about authenticity and the potential alienation of long-time fans.
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Leadership Accountability: Matsubara’s departure underscores the high stakes involved in major game releases and the accountability of top executives.
Looking Ahead for SNK
As SNK navigates this transitional period, the company faces the challenge of rebuilding trust with its fanbase and reassessing its strategic approach. Future projects will likely focus on core gameplay experiences, community engagement, and a balanced marketing strategy that resonates with both new and long-time players.
The resignation of SNK’s CEO following the launch of Fatal Fury: City of the Wolves serves as a pivotal moment for the company and the gaming industry at large. It highlights the critical balance between marketing, content authenticity, and audience engagement. As SNK moves forward, lessons learned from this experience will undoubtedly shape its future endeavors.
