Kaga's video game division was founded in 1988-06-22 under the name 'Naxat'. The company is named from backward spelling of Taxan, which is a brand owned by its parent company. To compete with Hudson's own Caravan video game marathon competitions in the late 80s, NAXAT held a similar competition dubbed Summer Carnival. The game for which the company is best known, Summer Carnival '92: Recca, commonly abbreviated to simply Recca, was created for this competition and named after it. The Summer Carnival was held for only three years and was not as successful as Hudson's. In 1998, the company was renamed to Kaga Tech Co., Ltd, but the video games were still sold under the Naxat Soft brand. In 1999-10-18, Digital Gain Co., Ltd. was established, which was responsible for developing Naxat Soft titles. In 2005-02-24, Kaga Electronics announced the merger of KAGA TECH CO., LTD. and KANTO AUTOMATION Co., Ltd., which would take effect on 2005-04-01. Under the terms of merger, the Amusement Machines Development Business of KAGA TECH CO., LTD. would be transferred to the Specific Industry Sales Headquarters of KAGA ELECTRONICS, the Entrust Business for Game Software Development to the Digital Media Lab., Inc., and the Game Software Development Business to the subsidiary DIGITAL GAIN CO., LTD. In 2007-04-25, Kaga Electronics announced Digital Gain Co., Ltd. would be renamed to Kaga Create Co., Ltd., which took effect on 2007-5-1. At the time of renaming, the company's business was expanded to graphic design, web page production, new source production, merchandise development, event promotion. It develops software for Pionesoft, Alchemist, Milestone Inc.
Summer Carnival
In 1991, Spriggan for the PC Engine CD system became the first competition game for Naxat. In 1992, Recca for the Famicom and Alzadick for the PC Engine CD were the competition games. In 1993, Nexzr Special for the PC Engine CD system was the game featured the last time Naxat held its Summer Carnival.
Subsidiaries
CyberFront Corporation : In April 2010, Kaga Electronics Co., Ltd. acquired 51% of CyberFront Corporation, and became a subsidiary of Kaga Electronics. In March 2013, Kaga Electronics Co., Ltd. acquired the remaining shares of CyberFront Corporation. In 2013-12-19, Kaga Electronics Co., Ltd. announced the dissolution of CyberFront Corporation following the discovery of inadequacies of CyberFront's intellectual property contracts and claims by business partners denying existence of such rights, and CyberFront Corporation founder Shinji Fujiwara's lack of cooperation in the investigation. As a result of dissolution, sales of Saints Row IV, Europa Universalis IV, ' were cancelled; and the sales of ' was indefinitely delayed. Sales of titles at PlayStation Store was terminated from 2014-01-21 to 2014-01-31, followed by sales termination at Xbox 360 Marketplace from 2014-01-25.
