Arzest

Arzest was founded on June 25, 2010, after Yoji Ishii left AQ Interactive, where he served as president and CEO upon the company's acquisition of Artoon in May 2004. Around the same time, Artoon was absorbed into AQ Interactive. Arzest is based in the former Artoon offices in Yokohama. The studio employs approximately 80 people, a dozen of them former Sega and Artoon staff.

Arzest started off working on select mini-games in Wii Play: Motion for Nintendo, with whom the studio would work with on numerous occasions, developing such titles as Yoshi's New Island, as well as content updates to the Nintendo 3DS application StreetPass Mii Plaza (namely the addition of SpotPass features to the mini-game Puzzle Swap, among others).

Arzest collaborated with Sonic Team to develop its latest title, Sonic Superstars (2023). Beginning work in early 2021, it marked Naoto Ohshima's first involvement with the Sonic series since Sonic Adventure (1998)

Balan Wonderworld controversy

In January 2018, Ohshima's Sega colleague Yuji Naka joined Square Enix. After that, Arzest collaborated with Square Enix to begin development of what would become Balan Wonderworld, reuniting Ohshima and Naka in their first collaboration since Sonic Adventure.

However, the pair's partnership soured as tensions arose during development. In April 2022, a year after leaving Square Enix the previous April, Naka said that he had been removed from the development team six months before release after he complained of Balan's state and accused Arzest of not addressing the bugs at the time of its submission.

Balan Wonderworld was released in March 2021 to critical and commercial failure. Naka believed that it had been released unfinished, and accused both Arzest and Square Enix of "not caring for their customers".