Sonic the Hedgehog Creator Gets Over Two Years in Prison for Insider Trading

Sonic the Hedgehog creator Yuji Naka has been sentenced to prison in Japan for 18 months after pleading guilty to insider trading. Naka was arrested last year for insider trading that allegedly occurred during his time at Square Enix. The creator was accused of purchasing shares in the companies Aiming, Inc. and Ateam prior to public announcements about mobile games based on two of Square Enix's most popular franchises: Dragon Quest and Final Fantasy. In addition to prison time, Naka will have to pay ¥2.5 million and ¥170 million, though Denfanminicogamer reports that his lawyers are looking to have those amounts decreased.

Naka began his career with Sega in 1984, staying with the company through 2006. Naka co-created Sonic, serving as lead programmer on the original game. While Naka helped create some of Sega's most popular and beloved games, his time at Square Enix revolved around his most infamous work, Balan Wonderworld. Naka joined the publisher in 2018, and Balan Wonderworld released in March 2021. Naka alleges he was let go from the game six months prior to its launch, following complaints about the game's quality. The creator claimed that he wanted to keep working on the game up to the last minute, having finished development on the original Sonic the Hedgehog just two weeks before release.

It's impossible to say for certain what happened, but Balan Wonderworld was a critical and commercial disappointment. During his time working on the game, Naka became privy to inside information about unannounced mobile games Dragon Quest Tact and Final Fantasy VII The First Soldier. Naka was one of multiple Square Enix employees that allegedly purchased stock in the two companies prior to the announcements of those games. 

Given the massive popularity of those franchises, it's easy to assume that both companies would have seen a significant boost following their official announcements. Ironically enough, Final Fantasy VII The First Soldier was actually a very big disappointment for Square Enix, and the game shut down earlier this year.

Are you a fan of Naka's work? Did you ever check out Balan Wonderworld? Let us know in the comments or share your thoughts directly on Twitter at @Marcdachamp to talk all things gaming!

[H/T: The Gamer]