Nippon Ichi Software has reportedly been making some steps to rectify their financially dire straits in Japan. According to a brief report from Siliconera, various Japanese websites like Gamebiz.jp have been reporting that Nippon Ichi Software is in financial trouble after having to apply for MS Warrant Stock.

Nippon Ichi is attempting to raise funds for developing a new game. According to a PDF document the company is attempting to raise 573 million yen for the game, and to cover the costs of employees.

The last bit has led some people to think that Nippon Ichi Software may not be able to properly pay their employees.

As reported by PlayCrazyGame.com, a lot of the financial woes are being foisted on the Disgaea RPG for mobile devices. The game was reportedly plagued with problems and failed to turn a profit.

According to Nintendo Enthusiast, the reports don’t indicate what sort of effect this may have on NIS America, which is the Western localization branch for Nippon Ichi Software. The NISA faction has been continually and regularly derided by fans for numerous issues, especially regarding translation accuracy and compatibility, as evident with the Ys VIII: Lacrimosa of Dana controversy, for which NISA had to apologize.

Overall it doesn’t look good for Nippon Ichi Software, and they’re now in a do or die situation where they’ll need to pull out a huge seller for their next outing. Otherwise they may end up facing layoffs, downsizing, or potential closure if they can’t fix the financial bleeding, assuming it’s as bad as the reports indicate.

It could technically be a basic restructuring that’s receiving a more negative spin given Nippon Ichi Software’s history, or it could be a legitimate problem that could have a long term negative impact on the development and publishing studio.

(Thanks for the news tip EvaUnit02)