In 2018, Kagami Works received praise from players worldwide for their adult-themed gem-matching game Mirror, which has since received "overwhelmingly positive" reviews on Steam to this day. However, the sequel released last year, Mirror 2: Project X was a completely opposite to the first game as it lacked any adult content. As a result, the game received "overwhelmingly negative" reviews from players.

After a year, the development team announced today that they have gone bankrupt and dissolved. They also stated that development on the later chapters of Mirror 2: Project X would be indefinitely halted, and that previously released titles Novastella Island and Dancingsim would also cease all future development plans. As a result, they will allow all players of these two games to apply for an unconditional refund starting today, and the titles will be completely removed within four weeks. Refunds for Mirror 2: Project X will also be processed gradually, with 30% of the refunds already completed.

According to data revealed by Kagami Works, Mirror 2: Project X had a cumulative sales volume of 4.2 million copies including DLC content, with pre-tax revenue of over 18 million, accounting for only 37% of the development cost. Dozens of people were needed to develop each chapter for three months, with early costs of 6 million and later costs of 4 million after the production pipeline became more mature.

Check out the complete bankruptcy notice and statement by Kagami Works on Steam.