Things aren’t looking so good for Cave Interactive

Sorry all you bored PlayStation Vita owners! While Cave Interactive announced its support for Sony’s new portable at TGS last year that’s not happening anymore. The latest issue of Famitsu magazine listed both titles amidst a group of canceled projects. 

Though Famitsu gave no indication as to why, the answer might have its genesis in a recent Japanese financial scare. GREE, Japan’s premier social networking service and one of Cave’s largest sources of funding, took a massive hit last week when proposed government regulation caused their stock prices to take a nosedive. GREE CEO Yoshikazu Tanaka personally lost $700 million as shareholders abandoned ship right and left. 

Additionally, Cave executive VP and COO Mikio Watanabe is leaving the company for personal reasons. Though he is staying on as a representative director until their next shareholder meeting in August, his departure leaves CEO Ito Masahito as the only remaining representative director.

So yeah, things don’t sound to be going terribly well for Cave at the moment. Then again, their next bullet-hell adventure Akai Katana is coming to Xbox 360 in North America this Friday thanks to Rising Star Games and Aksys. It could be the next Halo. Who knows? Maybe you should do your part and pre-order it or something

Cave COO Miko Watanabe ResignsCave Cans PlayStation Vita Titles [Andriasang via Joystiq]

Kyle MacGregor Burleson