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Raigor

Member
May 14, 2020
15,146
Ni No Kuni and Yo-Kai Watch developer Level-5 appears to have all-but-shuttered its North American operations.

According to multiple sources familiar with the matter, both Level-5 International America and the company's spin-off office, Level-5 Abby, began winding down operations in the middle of last year, part of which included laying off the majority of both offices' staff.

The precise number of people impacted is unknown, as is the number of employees still currently in each office, but sources estimate around ten employees were laid off at Abby in August of 2019, and around the same number were let go at International America.

Sources say that no clear reason for the lay-offs was given, though those connected to Abby say that employees were "given every indication" that the studio would be closing down, with one or two employees remaining for a few more months to carry out essential functions throughout the process while the company consolidated its business between the Japan office and international advertising and branding company Dentsu.

www.gamesindustry.biz

Level-5 has virtually halted operations in North America

Ni No Kuni and Yo-Kai Watch developer Level-5 appears to have all-but-shuttered its North American operations.According…
 

Deleted member 8593

User requested account closure
Banned
Oct 26, 2017
27,176
Thread title is slightly confusing and sort of burying the lede here when the news is that they're pretty close to shutting down.
 

KOfLegend

Member
Jun 17, 2019
1,795
Man, this hurts. Ni no Kuni is one of my favorite games of all time, and while the sequel was nowhere as good, I would've loved to see them do more with the IP. I know there's an MMO coming out but blech.

This sucks. This also means Layton's dead, but that's more of a "we been knew" situation.
 

Strings

Member
Oct 27, 2017
31,413
Man, this hurts. Ni no Kuni is one of my favorite games of all time, and while the sequel was nowhere as good, I would've loved to see them do more with the IP. I know there's an MMO coming out but blech.

This sucks. This also means Layton's dead, but that's more of a "we been knew" situation.
Ni No Kuni 3 is probably happening. 2 still sold very well - much better than anything else they've put out since then.

It'll be annoying if Yo-kai Watch 4 never makes it outside of Japan. I liked it way more than the other mainline games, and it had a chance of capturing a new audience since it moved to ARPG combat.
 

Masagiwa

Member
Jan 27, 2018
9,901
I mean isn't their main operations based in Japan? Hino said more Ni-No Kuni is coming in an interview a while back.
 

FelipeMGM

#Skate4
Moderator
Oct 25, 2017
3,012
Crazy how in a different position Level-5 is now compared to the end of last-gen.
 
Oct 27, 2017
5,364
Given how overall "not great" the sales of their games in NA have been, coupled with many people leaving the office saying that working there is horrible, this is...not surprising.

I always found it weird how Layton's Mystery Journey on the Switch, a game that was a port of something that already localized, took over a year to come over here.

Although not like Level-5 in Japan looks like it's doing any better, almost feels like Megaton Musashi is their sort of "go big or go home" attempt at a multimedia franchise. Can't imagine what will happen if that ends up failing.
 

Vash

Member
Oct 28, 2017
1,795
Hm, that's a damn shame, but also pretty much expected. I think they wanted to grow big too soon, and with the lack of proper success in some cases stuff like this happens unfortunately.

I think the Level-5 heads need to take a step back and re-focus. And yeah, as PlanetSmasher said, a Japanese developer/publisher starting a Western team usually falls by the wayside somehow. Probably the difference in culture.
 
Oct 27, 2017
5,364
I do wonder what would happen if Level 5 International does end up shutting down?

Would their games just end up being localized by Nintendo?
 

Holundrian

Member
Oct 25, 2017
9,154
Level 5 has become a monkey paw studio tbh. I still like Layton and NNK a fair bit but the recent output on those was disappointing and the immediate future seems like stuff I don't want.
Also while I still want Dark Cloud 3 I kind of don't want it done by Level 5 anymore.
 

Strings

Member
Oct 27, 2017
31,413
Given how overall "not great" the sales of their games in NA have been, coupled with many people loving the office saying that working there is horrible, this is...not surprising.

I always found it weird how Layton's Mystery Journey on the Switch, a game that was a port of something that already localized, took over a year to come over here.

Although not like Level-5 in Japan looks like it's doing any better, almost feels like Megaton Musashi is their sort of "go big or go home" attempt at a multimedia franchise. Can't imagine what will happen if that ends up failing.
Iunno, it feels like they've already given up on Megaton. Wonder how the GAAS Yo-kai Watch game is doing for them.
 

asmith906

Member
Oct 27, 2017
27,394
It's crazy at ome point yokai watch was getting so big people thought it would eclipse pokemon.
 

Zalman

Member
Oct 25, 2017
5,896
Loved Layton and Fantasy Life on DS/3DS. They used to be a powerhouse. I think we all saw this coming though.
 

Foltzie

One Winged Slayer
The Fallen
Oct 26, 2017
6,792
Curious if their IP is going to be acquired. I would have to assume that Layton might be of value to some company.
 
Oct 27, 2017
5,364
Iunno, it feels like they've already given up on Megaton. Wonder how the GAAS Yo-kai Watch game is doing for them.

Megaton feels like the kind of franchise that is going to have to rely on the game more than the anime in order to appeal to people first. Doesn't help they already had a mecha multimedia franchise already with Little Battlers Experience

And not sure if you're referring to the mobage with the GAAS game, but still, according to App Annie, none of them are doing any good!
 

Strings

Member
Oct 27, 2017
31,413
Megaton feels like the kind of franchise that is going to have to rely on the game more than the anime in order to appeal to people first. Doesn't help they already had a mecha multimedia franchise already with Little Battlers Experience

And not sure if you're referring to the mobage with the GAAS game, but still, according to App Annie, none of them are doing any good!
Nah, I'm talking about Yo-kai Watch Jam: Yo-kai Academy Y. It came out on Switch digitally in August, and will come out on PS4 later this month.
What do you mean given up on Megaton? They had a bunch of stuff for it at TGS
The way they initially talked about Megaton and the way they re-revealed and presented it at TGS makes it feel like it's been heavily deprioritised imo. It's now a mostly multiplayer thing with uncharacteristically cheap talking head cutscenes.
 

Joni

Member
Oct 27, 2017
19,508
Their success was heavily tied to handhelds, so in a post-traditional handheld world, it is no surprise they need to downsize to refocus on their traditional strengths.
 

Rotobit

Editor at Nintendo Wire
Verified
Oct 27, 2017
10,196
Yo-Kai Watch would have had the staying power if they handled it better overseas. Hard to make a phenomenon nowadays when it doesn't have a worldwide reach. Honestly Nintendo was probably the worst choice to partner with in that regard. The Pokémon comparisons are silly (outside of "it has a bunch of monsters") but they didn't do much to dispel them, and ultimately why would they compete with themselves when that's the perception?

I do wish them the best but they've messed up so many times it's hard to see a light at the end of their tunnel. Hopefully Ni no Kuni 3 has the budget and the direction of the first game again.
 

FormatCompatible

One Winged Slayer
Member
Oct 25, 2017
12,071
Hino has been making bad decision after bad decision for a while now. Fuck's sake they bought Comcept! Now I just wonder for how long L5 will last before some huge corporation buys them.
 

Atheerios

Member
Oct 27, 2017
7,098
"One source suggested that there were currently no concrete plans for any more Level-5 games to be released outside of Japan"
 

NotLiquid

One Winged Slayer
Member
Oct 25, 2017
34,767
Comparing the sales numbers of YW2 and YW4 is the kind of thing that makes you ask whether two timelines intersected at some point
 

Razgriz417

Member
Oct 25, 2017
9,110
i only know them for ni no kuni games and yeah the 2nd one was not well received at all. And I'm also in the camp that I didn't know they had US offices
 

CielTynave

Member
Oct 25, 2017
2,223
Sucks for people that'll lose their jobs if they go under in NA or even JP, but I can't say I fully enjoyed even a single game they ever made on their own.
 

rhandino

Member
Oct 25, 2017
2,610
Sad but

WNAGR9H.gif


Even since YW2 its been mistake after mistake after mistake on their NA operations and handling of their games.

I did my part to help them tho, I bought Snack World lol!
 
OP
OP

Raigor

Member
May 14, 2020
15,146
And yeah, as PlanetSmasher said, a Japanese developer/publisher starting a Western team usually falls by the wayside somehow

It went really well with SEGA when they expanded SEGA Europe and started acquiring studios, it's all about having a clear vision and make products that people want.
 

Eden-prime

Member
May 21, 2020
309
i only know them for ni no kuni games and yeah the 2nd one was not well received at all. And I'm also in the camp that I didn't know they had US offices

I don't know what i missed but from the review scores, the 2nd one is doing pretty well. If you meant Yokai Watch 2 then my bad :P
 
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Refyref

One Winged Slayer
Member
Oct 25, 2017
1,025
Not to mention Dragon Quest VIII, IX, and DS remakes that they made were all superb. 2000s Level-5 were actually amazing, but then the 2010s came and they had to make every single new IP into some multimedia franchise. It's so unfortunate.
They were not involved with the DS remakes whatsoever, nor were they actually responsible for the game design part of DQ8/9.
 

Mario_Bones

Member
Oct 31, 2017
3,521
Australia
We all saw this coming but it's still really sad. They've made some fantastic games but always seemed mismanaged and were never able to keep their franchises going steadily in the West

Buy Yo-kai Watch 2
 
"One source suggested that there were currently no concrete plans for any more Level-5 games to be released outside of Japan"
This doesn't strike me as being particularly surprising, but keep in mind that they have abnormally long localization efforts across the board, so something that was announced for western localization already like Yokai Watch 4 would only be in the midst of development support. In any event, this is definitely not a good sign.