The Fallout of Fatal Fury: City of the Wolves—SNK CEO Steps Down

In a surprising turn of events, Kenji Matsubara, CEO of SNK Corporation, has stepped down from his leadership role, transitioning into an advisory position. This decision comes in the wake of the unexpectedly low performance of SNK’s latest release, Fatal Fury: City of the Wolves, a game that was meant to mark the triumphant return of the beloved fighting franchise after 26 years.

SNK went all-in on Fatal Fury: City of the Wolves, pouring substantial resources into its marketing and advertising campaign. The game was heavily promoted across various platforms, including WWE events, YouTube, and other digital spaces. It even featured Cristiano Ronaldo as a playable fighter, alongside contributions from world-renowned DJs for its soundtrack.

Despite these efforts, the game failed to generate the expected sales and player engagement. On Steam, the game peaked at 4,592 concurrent players, a disappointing figure for a title meant to revive a legendary franchise. In Japan, it sold only 10,000 copies on PlayStation within its first two weeks, ranking 10th in sales charts behind older titles like Minecraft and Mario Kart 8 Deluxe.

SNK’s Official Statement

On May 12, 2025, SNK Corporation released a statement announcing Matsubara’s transition to an advisory role. The company praised his contributions, highlighting his efforts in expanding SNK’s development division and strengthening its sales and marketing functions. However, the timing of his departure has led many to speculate that the underwhelming performance of Fatal Fury: City of the Wolves played a significant role in this decision.

While SNK has not publicly disclosed exact sales figures or revenue losses, industry analysts suggest that the game’s poor reception has had a negative financial impact on the company. The Saudi Arabian Public Investment Fund, which owns a major stake in SNK, had reportedly contributed heavily to the game’s development and marketing. The disappointing sales figures may have influenced the board’s decision to restructure leadership.

What’s Next for SNK?

With Matsubara stepping down, SNK’s Chairman of the Board will assume the role of interim CEO until a permanent replacement is appointed. The company remains committed to its strategic vision, but the failure of Fatal Fury: City of the Wolves raises questions about SNK’s future direction in the fighting game industry.