Japanese game company GungHo Online Entertainment has announced a major leadership change, with longtime President and CEO Kazuki Morishita stepping down from his role. The company revealed on January 9, 2026, that Morishita will transition into the positions of Chairman of the Board and Chief Development Officer, allowing him to focus more closely on game development moving forward.
The announcement comes after months of pressure from activist investors, most notably Strategic Capital, which has publicly criticized GungHo’s leadership since early 2025. The firm argued that Morishita’s continued tenure had stalled the company’s growth, citing the lack of major hit titles since the success of Puzzle & Dragons, and raising concerns over executive compensation. While GungHo previously rejected calls for Morishita’s removal, stating it could harm corporate value, the leadership shift was finalized just months later.
Beginning February 1, 2026, GungHo’s current Chief Financial Officer, Kazuya Sakai, will assume the role of President and CEO. Alongside the executive reshuffle, GungHo also announced revisions to its remuneration system. Presidential compensation is expected to drop significantly, with total pay reduced by roughly 63% compared to the previous fiscal year under a new performance-linked restricted share model.
Following the announcement, GungHo’s stock reportedly saw a steady increase, drawing attention from investors—particularly due to the company’s new compensation structure, which ties stock-based remuneration to shareholder return performance. GungHo is best known globally for Puzzle & Dragons and, more recently, as the publisher of The Legend of Heroes: Trails in the Sky 1st Chapter.
Source: Automaton Media
