In 2000, Aruze bought out
SNK Corporation, maker of the
Neo Geo. In exchange for the use of SNK's popular characters on their pachinko and slot machines, and a few games for the Neo Geo, Aruze promised financial backing for the failing SNK. Instead Aruze instituted a program to liquidate SNK's assets and cut costs. This included licensing out popular
IP to other companies (such as
Metal Slug series,
The King of Fighters series and
Sengoku series), closing underperforming divisions, discontinuing distribution outside Japan, ending support for the Neo Geo arcade platform and selling off warehoused inventory. By 2001 it was clear to many SNK's employees that Aruze was not planning to preserve SNK and was simply going to let the company implode after liquidating most of its useful assets. So Eikichi Kawasaki and many other executives from SNK left to form Playmore in August 1, 2001. Over this period many rank and file employees left to join other arcade developers or form their own companies. In November 1, 2001, Aruze announced that its subsidiary, SNK to file for bankruptcy by the
Osaka District Court on October 30, 2001 and all of its assets went up for bidding. Kawasaki's Playmore stepped in and bought up most of the auctioned assets and set itself up to re-enter the video game market as the successor to SNK. Playmore also acquired some of the companies formed by ex-SNK employees, namely Brezzasoft and Noise Factory, to jumpstart development of more titles for the Neo Geo arcade system. Playmore quickly went about re-establishing themselves in the market; they opened new branches in North America and Europe, announced development of new titles for the Neo Geo arcade system, started developing games for console and portable systems for the first time in years and re-established distribution channels to sell inventory for the Neo Geo home and pocket systems. To further establish themselves as a reborn SNK they officially changed their name to SNK Playmore in 2003. In October 2002, Aruze was sued by Playmore founder Eikichi Kawasaki for copyright infringement over SNK's intellectual properties, claiming their use was unauthorized by Playmore. In January 2004, a preliminary decision was handed down by the
Osaka District Court favoring SNK Playmore and was awarded 5.64 billion yen (US$57,627,468) in damages. == UPL ==