Gung Ho faces shareholder backlash over high salary and declining revenue from Puzzle & Dragons
Gung Ho, the developer of Puzzle & Dragons, faces criticism from shareholders over its president's high salary of 340 million yen, which is comparable to Nintendo's president. Shareholders are unhappy with poor investment returns and declining revenue. Despite releasing 20 games since 2012, Gung Ho remains heavily reliant on Puzzle & Dragons, which has seen revenue drop since 2014. The company has spent over 100 billion yen on new titles, earning less than 10 billion yen in return. A report from Strategic Capital suggests Gung Ho should consider going private and reassess its pay structure. The report also highlights the company's large cash reserves, which are seen negatively due to low profitability.