In a move that’s sent ripples through the fighting game community and industry insiders alike, SNK Corporation’s CEO Kenji Matsubara has officially stepped down following the commercial failure of Fatal Fury: City of the Wolves. The timing is hard to ignore — the game, which marked the long-awaited return of the Fatal Fury franchise after a 26-year hiatus, launched with surprisingly disappointing sales despite high-profile marketing campaigns and a positive critical reception.

A Promising Return That Didn’t Stick

When Fatal Fury: City of the Wolves released on April 24, 2025, expectations were sky-high. The franchise, beloved by fans of classic SNK fighting games, seemed poised for a triumphant comeback. SNK spared no expense, roping in global superstar Cristiano Ronaldo and EDM DJ Salvatore Ganacci as playable characters — an eyebrow-raising choice that garnered as much skepticism as curiosity. The game also enjoyed prominent placements at mega events like WrestleMania and boxing matches, signaling SNK’s ambitions to push Fatal Fury beyond its niche audience.

Yet, despite these efforts, the sales numbers tell a grim story. In Japan, Fatal Fury: City of the Wolves managed to move just over 6,300 copies on PlayStation 5 during its first two weeks — a shocking figure given the marketing muscle behind the release. Steam peak concurrent players hovered below 5,000, with daily active player counts not much higher than 1,100. This commercial underperformance paints a stark contrast against the game’s Metacritic score of 80, which indicates the product itself was solid but somehow failed to find its audience.

The Fallout: CEO Steps Down

Industry insiders widely speculate that Matsubara’s resignation is linked directly to these underwhelming results. While SNK’s official statement was vague, noting only a leadership change “to pursue new strategic directions,” the board’s decision to appoint the chairman as interim CEO suggests a shakeup born from frustration with recent outcomes.

The role of SNK’s majority stakeholder, the Saudi Arabian Public Investment Fund, is also drawing scrutiny. Since acquiring a controlling stake, the fund has pushed for aggressive expansions and brand reinventions. The Ronaldo and Ganacci partnerships were likely part of that strategy — a gamble to globalize SNK’s appeal. Unfortunately, it appears that the disconnect between these flashy marketing stunts and the core fanbase’s expectations has backfired.

What Went Wrong?

At the heart of this debacle is a familiar story: a beloved legacy brand struggling to modernize without alienating its core audience. Fatal Fury fans wanted a respectful, authentic revival of their classic fighters — not a gimmick-heavy spectacle featuring celebrities who don’t resonate with the community. Meanwhile, SNK’s attempts to court a broader, mainstream audience didn’t convert into meaningful sales, highlighting the risk of losing focus on what made the brand successful in the first place.

This misalignment raises questions about SNK’s strategic vision under Matsubara. Did the CEO overestimate the crossover appeal of celebrity tie-ins? Was the marketing spend so large that it created unrealistic expectations? Or did the brand simply fail to generate the hype and goodwill necessary to thrive in today’s competitive fighting game market?

What’s Next for SNK?

With Matsubara’s exit, SNK now faces a critical crossroads. The interim CEO will need to stabilize the company while searching for a leader who can better balance innovation with respect for the brand’s heritage. Fans and investors alike will be watching closely to see if SNK recalibrates its approach — potentially focusing on strengthening core franchises, nurturing community trust, and delivering experiences that honour SNK’s legacy rather than chasing flashy but shallow hype.

Fatal Fury: City of the Wolves may have stumbled out of the gate, but the brand’s future hinges on whether SNK can learn from these mistakes and reconnect with the passionate fighting game audience that has kept it alive for decades.