Katsuhiro Harada, the long-time director and producer of the Tekken series, has officially joined SNK to establish a new video game studio called VS Studio. The announcement, made on May 12, 2026, marks a significant shift in the fighting game landscape, as Harada brings decades of experience to SNK, the company behind iconic franchises like Fatal Fury and The King Of Fighters.
Harada's Departure from Bandai Namco
In December 2025, Harada announced his departure from both the Tekken series and publisher Bandai Namco, ending a 31-year tenure. While he had previously hinted at retirement after the release of Tekken 8, it remained unclear whether he would leave the video game industry entirely. Now, it is confirmed that he is forming his own studio, with SNK investing in its founding as a new subsidiary.
VS Studio: A New SNK Subsidiary
VS Studio is described as a subsidiary that will collaborate with SNK on game software development, aiming to strengthen their overall development capabilities. In a statement, Harada said, 'We will combine technology, sensibility, and world-class expertise to pursue the ultimate. From a free, open, and spacious environment, we will generate new ideas and create memorable games.'
SNK's Yasuyuki Oda, producer of The King Of Fighters 15 and Fatal Fury: City Of The Wolves, welcomed Harada in a video message, stating, 'I am extremely proud to welcome Mr. Katsuhiro Harada, who has been a long-time friend and a worthy rival to us, into our group. We’ve long discussed the hypothetical scenario of working together, and now that dream has become a reality.'
What Will VS Studio Develop?
While no specific projects have been announced, the name VS Studio and Harada's history with fighting games strongly suggest that the studio's first project will be a fighting game. The level of SNK's involvement remains unclear, but the collaboration is expected to leverage both parties' expertise.
SNK's Controversial Ownership
It is worth noting that the modern SNK is not the same company that shut down in 2001. Today's SNK is a subsidiary of the Misk Foundation, a Saudi Arabian organization owned by Crown Prince Mohammed bin Salman. This ownership has sparked controversy due to allegations of human rights violations and reported interference in game development. For instance, Fatal Fury: City Of The Wolves included real-world celebrities like footballer Cristiano Ronaldo and DJ Salvatore Ganacci, both favorites of the crown prince, leading to fan backlash and poor sales.
Harada Joins a Trend of High-Profile Developer Studios
Harada is the latest in a line of prominent Japanese game developers to establish their own studios under unexpected circumstances. However, recent examples have faced challenges. No More Heroes creator Goichi 'Suda51' Suda and Yakuza creator Toshihiro Nagoshi both set up studios under Chinese company NetEase, which later announced it would cease funding Japanese studios after current projects. Suda51's Romeo Is A Dead Man was released, but Nagoshi's Gang Of Dragon may face cancellation, with the studio reportedly closing. In 2024, NetEase shut down Ouka Studios on the day it launched Visions Of Mana.
Industry observers will be watching closely to see if Harada's venture with SNK proves more stable. With his track record and the backing of a major fighting game publisher, VS Studio has the potential to deliver exciting new titles, but the controversies surrounding SNK's ownership could pose challenges.
