GungHo Online Entertainment
Corporate brand
UnclaimedGungHo Online Entertainment is a Japanese video-game developer and publisher best known for Puzzle & Dragons and its operation of online game services.
Last updated August 26, 2026
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Overview
GungHo Online Entertainment is a Japanese game developer, publisher, and online-service operator. The company began in 1998 as ONSale Co., Ltd., a joint venture associated with SoftBank and the U.S. online-auction company onSale. Its original business was unrelated to games: it pursued online interactive-auction services and later provided auction and other internet systems through an application-service-provider model. After moving its headquarters to Tokyo in 2000, the company redirected its strategy toward online games and adopted the GungHo identity associated with its later entertainment business. A major early turning point was the Japanese operation of Ragnarok Online, the Korean-developed MMORPG created by Gravity. GungHo established itself as an important local online-game service provider through hosting, publishing, and operating multiplayer titles. It later expanded into development and co-development, working with studios such as Game Arts and building a portfolio that included Emil Chronicle Online, Ragnarok-related projects, and other PC and console games. The company also invested in mobile-game businesses and acquired development assets, including the former Interchannel game properties and the Japanese publisher and developer Gravity in 2008. GungHo's defining commercial breakthrough came in 2012 with Puzzle & Dragons, a free-to-play mobile role-playing and puzzle game. Its combination of match-based puzzle mechanics, collectible monsters, team-building, and live-service events made it one of Japan's most successful mobile games. Puzzle & Dragons became the company's dominant commercial property and supported expansion into merchandise, collaborations, platform adaptations, and related titles. The game was also released on Nintendo 3DS in the Puzzle & Dragons Z and Super Mario Bros. Edition project, demonstrating GungHo's ability to extend a mobile franchise into packaged and cross-media formats. The company broadened its portfolio through acquisitions and publishing relationships. In 2013 it acquired Grasshopper Manufacture, known for distinctive action and auteur-driven games including Killer7, No More Heroes, and Lollipop Chainsaw. GungHo also operated or published projects across PC, consoles, handheld systems, and mobile devices, including Ragnarok Odyssey, Grandia-related releases, Let It Die, Ninjala, Summons Board, TEPPEN, and other online titles. Its business has remained centered on game development, publishing, platform operation, and monetized online services rather than on a single hardware ecosystem. GungHo's corporate structure changed in 2016 when SoftBank sold most of its stake, ending its majority ownership and the company's status as a SoftBank associate. The company subsequently divested several acquired assets. Grasshopper Manufacture was sold to NetEase in 2021, and Acquire was sold to Kadokawa in 2024. These transactions reduced the breadth of GungHo's studio holdings while leaving the company focused on its own game portfolio and live operations. Puzzle & Dragons has remained the central pillar of GungHo's identity and revenue profile, while the company has continued attempts to develop additional successful franchises. Current and recent activities include the Ninjala multiplayer action property, TEPPEN, Ragnarok services, mobile role-playing and strategy games, and publishing or platform releases involving established Japanese game series. In 2025, shareholder activist Strategic Capital sought changes involving chief executive Kazuki Morishita, criticizing the company's dependence on Puzzle & Dragons and arguing that it had not produced another comparable hit. The episode highlighted the strategic challenge facing GungHo: preserving a highly durable flagship live service while renewing its pipeline and reducing concentration around one franchise.
History
GungHo Online Entertainment was established on July 1, 1998, as ONSale Co., Ltd., a joint venture between SoftBank and onSale Inc. Its initial purpose was to pursue online interactive-auction business in the United States. In 2000, the company relocated its headquarters to Chiyoda, Tokyo, and shifted toward supplying auction systems and related internet services through an ASP model. The decisive change came in 2002, when GungHo moved into online game services. It became associated with the Japanese operation of Ragnarok Online, a Korean MMORPG developed by Gravity, and began building expertise in server operation, publishing, customer support, and live online communities. In 2004, it began joint online-game development with Game Arts. The company listed its shares on Japan's Hercules New Market in March 2005 and invested in mobile-game maker G-Mode later that year. In December 2005, GungHo released Emil Chronicle Online, one of its own major online-game projects. GungHo continued to expand its Ragnarok activities, including distribution arrangements for Ragnarok Online II. In 2007 it established GungHo Works, an entity connected with game development, and acquired video-game assets from Interchannel. In April 2008 it acquired Gravity as a subsidiary, strengthening its relationship with the Ragnarok franchise and giving it a listed Korean game-company affiliate. During this period the company released or operated a broad collection of PC online games, including Ragnarok-related titles, Emil Chronicle Online, Grandia Online, and other role-playing, social, and casual services. The company's greatest transformation occurred in 2012 with Puzzle & Dragons. The mobile title combined puzzle play with role-playing progression and collectible creatures, creating a highly repeatable free-to-play service. Its success made GungHo one of Japan's best-known mobile-game companies and generated a substantial concentration of the company's business around the franchise. GungHo extended the property through collaborations, continuing updates, mobile editions, and Nintendo 3DS adaptations, including Puzzle & Dragons Z and the Super Mario Bros. Edition. GungHo also pursued premium and creator-led development. In January 2013 it acquired Grasshopper Manufacture, whose catalog included Killer7, No More Heroes, and Lollipop Chainsaw. The group subsequently supported releases across PlayStation, Nintendo, PC, and mobile platforms, including Ragnarok Odyssey, Let It Die, Grandia-related remasters, Ninjala, TEPPEN, Summons Board, and other properties. This portfolio gave GungHo a presence beyond mobile puzzle games, although Puzzle & Dragons remained its defining commercial asset. In 2016, SoftBank agreed to sell most of its GungHo holding. The sale, completed on June 22, ended SoftBank's majority ownership and GungHo's position as a SoftBank associate, making the company more independent in corporate terms. GungHo later streamlined its group. Grasshopper Manufacture was sold to NetEase in October 2021, while Acquire was sold to Kadokawa in February 2024. The company remains active as a developer, publisher, and operator of online games. Its continuing portfolio includes Puzzle & Dragons, Ragnarok services, Ninjala, TEPPEN, and other mobile and console projects. In 2025, Strategic Capital mounted a shareholder challenge directed at CEO Kazuki Morishita, arguing that GungHo had become too dependent on its original mobile hit and had not generated a comparable successor. The dispute reflects the central strategic issue in GungHo's current history: maintaining a mature flagship live service while investing in new franchises and broader growth.
- 2024
Acquire sold to Kadokawa
[1]GungHo sold Acquire to Kadokawa.
- 2021
Grasshopper Manufacture sold to NetEase
[1]GungHo divested the acquired studio as part of a narrower group strategy.
- 2016
SoftBank majority ownership ended
[1]SoftBank sold most of its stake, ending majority control and GungHo's associate-company status.
- 2013
Grasshopper Manufacture acquired
[1]GungHo acquired the studio behind No More Heroes and other distinctive action games.
- 2012
Puzzle & Dragons launched
[1]The mobile puzzle role-playing game became GungHo's breakthrough franchise and its principal commercial property.
- 2008
Gravity becomes a subsidiary
[1]GungHo acquired Gravity, strengthening its relationship with Ragnarok Online and the Korean development business.
- 2005
Japanese market listing and mobile-game investment
[1]GungHo listed on the Hercules New Market and invested in mobile-game company G-Mode.
- 2002
Shift into online game services
[1]GungHo changed its primary business focus to online games, including the Japanese Ragnarok Online service.
- 2000
Headquarters moved to Tokyo
[1]The company relocated to Chiyoda, Tokyo, and pursued auction-system and ASP services.
- 1998
Company established as ONSale Co., Ltd.
[1]The business was founded as a SoftBank and onSale joint venture focused on online auction activity.
Products and positioning
A Japanese multi-platform game company built around long-running online services, mobile free-to-play franchises, and selective development and publishing partnerships. Its brand is most strongly associated with Puzzle & Dragons and with the operation of Ragnarok Online in Japan.
Mobile puzzle role-playing game · 2012
Puzzle & Dragons
Puzzle & Dragons combines match-based puzzle combat with monster collection, team construction, role-playing progression, and recurring live-service content. Released in 2012, it became GungHo's signature property and the foundation of the company's transformation into a major Japanese mobile-game operator. The franchise has received continuing updates, collaborations, and adaptations, including the Nintendo 3DS title Puzzle & Dragons Z and the Super Mario Bros. Edition.
Massively multiplayer online role-playing game · 2001
Ragnarok Online
Ragnarok Online is a Korean-developed MMORPG operated in Japan by GungHo. The service was one of the company's foundational online-game businesses and helped establish its capabilities in publishing, hosting, customer operations, and community management. GungHo has also been associated with related Ragnarok projects, including Ragnarok Online II, Ragnarok DS, Ragnarok Odyssey, and mobile adaptations.
Online multiplayer action game · 2020
Ninjala
Ninjala is a colorful online action title built around competitive multiplayer matches, movement, weapons, and ninja-themed character customization. It represents GungHo's effort to create a newer cross-platform property beyond Puzzle & Dragons and extends the company's experience with persistent online services and regularly updated player content.
Digital collectible card and strategy game · 2019
TEPPEN
TEPPEN is a digital competitive card game associated with GungHo's mobile publishing and live-service activities. It uses characters and themes from prominent Capcom game properties and combines deck construction with real-time tactical play. The title illustrates GungHo's use of licensed collaborations to reach established game audiences.
Online role-playing game · 2005
Emil Chronicle Online
Emil Chronicle Online was an MMORPG developed and operated by GungHo. Officially released in 2005, it formed part of the company's early expansion from online-game operation into original development and long-term service management.
Action game
Let It Die
Let It Die is a free-to-play action game associated with Grasshopper Manufacture and GungHo. It brought the company's online-service model to a console and PC action experience, pairing demanding combat with progression and persistent service elements.
Brand decisions
2025
Respond to shareholder challenge over franchise concentrationStrategyBackground
Strategic Capital criticized GungHo's dependence on Puzzle & Dragons and argued that the company had not developed another similarly successful property.
Action taken
The investor launched a shareholder bid seeking to remove CEO Kazuki Morishita.
Aftermath
The challenge placed management succession, executive compensation, and the need for new hit franchises at the center of debate about GungHo's strategy.
2024
Sell Acquire to KadokawaM&ABackground
GungHo continued to simplify its portfolio of directly owned game studios.
Action taken
Acquire was sold to Kadokawa Corporation.
Aftermath
Acquire became part of Kadokawa's game business.
2021
Sell Grasshopper Manufacture to NetEaseM&ABackground
GungHo had owned Grasshopper Manufacture since 2013, but later chose to divest the studio.
Action taken
Grasshopper Manufacture was sold to NetEase.
Aftermath
The studio left the GungHo group and continued under NetEase ownership.
2016
Accept SoftBank's sale of its majority stakeM&ABackground
SoftBank agreed to sell most of its holding in GungHo, ending its majority ownership and the company's status as a SoftBank associate.
Action taken
GungHo accepted the offer, which was completed in June 2016.
Aftermath
GungHo became more independent from SoftBank while continuing its game-development and publishing operations.
Recent events
Reported
Ninjala launches Jujutsu Kaisen crossover[2]
GungHo Online Entertainment released a limited-time crossover event in Ninjala featuring content inspired by Jujutsu Kaisen, available through April 13.
Reported
Teppen introduces Dragons of War expansion[3]
Capcom and GungHo Online Entertainment marked Teppen’s second anniversary with an update introducing the Dragons of War expansion, featuring characters from the Monster Hunter Riders and Breath of Fire series.
Sources3 sources
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