Disaster Report 4 publisher warned by labor inspection for unpaid salaries amidst accusations of violating the Minimum Wage Act

On January 7, Granzella made an official statement addressing certain issues with the company’s wage payment practices.

Japanese game developer Granzella made an official statement on January 7 addressing certain issues concerning the company’s wage payment practices. The statement comes as a response to a formal warning from the Kanazawa Labor Standards Inspection Office. Japanese media have reported that charges were filed against the company and its affiliates on suspicion of violating the Minimum Wage Act, but Granzella states that some of the details of the reports differ from what actually happened, and is currently looking into the situation.  

Granzella is a game development company from Kanazawa, Ishikawa prefecture, established by former staff members of Irem Software Engineering. In 2014 Granzella acquired the Disaster Report IP and published Disaster Report 4 Plus: Summer Memories in 2018 as a rebooted version of the cancelled Irem game. The company has also worked on some of the recent entries in the R-TYPE series, including the upcoming R-TYPE TACTICS I • II COSMOS set to release in March 2026.

Apparently, the Kanazawa Labor Standards Inspection Office issued the notice after it found out that Granzella had been delaying payments of wages due to the company’s poor business performance over several years starting from 2023. Specifically, between May 2023 and May 2025, Granzella didn’t have sufficient funds to cover their employees’ wages following the downturn in business. After consulting with the employees, the company requested for the payment of May, June and August wages to be put on hold. According to Granzella, all of the subsequent wages were paid as due, however, it took some time to settle the unpaid amount. The wages were paid off gradually and the problem is said to have been fully resolved around May 2025.

In an attempt to overturn the business slump, some of the Granzella employees decided to establish a new production company. However, the business didn’t end up going as planned in the first few months of its establishment, resulting in further instances in delayed payments. According to the statement, the business is currently pack on track and salaries are being paid as due, and the company expects to complete all of the delayed payments by Spring 2026.

Major Japanese media houses like NHK and MRO reported that Granzella, alongside two other affiliated companies based in Kanazawa and Nonoichi cities and their two respective directors had been referred to prosecutors on suspicion of violating the Minimum Wage Act. Additionally, it is reported that a total of over 18 million yen in wages for 46 employees across the three companies has been left unpaid over a period of 9 months from 2023 to 2024.

However, in their statement, Granzella explained that some of the reports were inaccurate, and that they are currently looking into the matter. The company also apologized for the issues and promised to act in compliance with the law and work on rebuilding trust with their employees and the public.

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Hideaki Fujiwara
Hideaki Fujiwara

Automaton Japan Deputy Editor-in-Chief. Voracious gamer who plays everything. Loved Titanfall 2 and has been playing Apex Legends since its launch.

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  1. Oof. Hopefully they turn things around and start paying their employees. From making PS Home experiences to that kaiju game, Disaster Report 4, and then R-Type, they really need a really succesful game, I think. I remain hopeful for a Steambot Chronicles revival.