Japanese game development company Pixel and a former Konami composer have lost most of their legal claims against each other in a long-running legal dispute over a (now abandoned) crowdfunded game.
The conflict revolves around Steam Pilots, a vertical-scrolling shooter that raised more than 10 million yen (around $90,000 USD at the time) through two crowdfunding campaigns back in 2019. The project was launched and led by guitarist and ex-Konami composer Motoaki Furukawa, with a planned 2020 release window. However, development stalled, and updates about the project stopped. Although the crowdfunding platform eventually issued refunds to backers, there’s been ongoing conflict between the creators ever since.
Pixel, who was originally hired by Furukawa to develop the game, says it stopped working on the project because it wasn’t being paid and because previously agreed terms about the project were changed one-sidedly. They went on to sue Furukawa in 2022 to recover the unpaid development fees. Furukawa responded by filing a lawsuit of his own in 2023, seeking not only damages from Pixel, but additional personal compensation from Pixel’s CEO, claiming emotional distress.
On January 29, 2026, a local Japanese court finally made a ruling on both sides’ claims, dismissing Pixel’s demand for payment as well as Furukawa’s damages claim against the company. However, it did order Pixel’s president to personally pay 400,000 yen (about $2,600 USD) in compensation to Furukawa.
Pixel is not happy with the ruling, arguing on X that the joint development contract asserted by Furukawa is “a sloppy arrangement far removed from standard game industry practices.” The company also said it’s concerned that this case will harm consumers’ trust in crowdfunding, noting that Furukawa never actually disclosed how the funds for Steam Pilots ended up being used. “This ruling shakes the very foundations of the game industry, and by extension, the content industry. We cannot possibly accept it.” It seems Pixel will not be backing down from the dispute, with plans to announce further steps in the near future.
