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Japan has 125 Million people.
The U.S. over 300 Million People.
If just 0.5% of those people buy into the next game... well..
625,000 Sales from Japan alone, compared to 1,500,000 from JUST the U.S. that doesn't even include the EU as a whole which is another large market for Illgames to look at.
So you can see wanting to expand their distribution overseas with a squeaky clean reputation as a new company is definitely beneficial to them and lends some credence to why the rebranding maneuver (Though again, other unknown factors are prolly at play too)
And to your theory: Yeah, well, they should have used another name then instead of calling themselves ill games. :)
It's more of a technicality/legal thing since they are technically a NEW company, they don't have some of the previous restrictions.
when talk of the studio's closure and speculation about acquisition and rebranding manages to hit something as (relatively) mainstream as the hololive subreddit, it's not hard to imagine that illusion's managed to catch the interest of companies much larger than themselves
while i seriously doubt that cover are about to up and admit that they've invested in illgames, it's hard to deny that that one model of houshou marine from the summer festa looks like it's straight out of HS2
Nope. This is standard Japanese licensing. Take a look at any game sold in Japan, not just eroge and you'll see FOR JAPAN ONLY on the box above the barcode. This is also true of games released in Japan by western companies. The only exception is Nintendo Switch releases, they don't have the English phrase on the packaging, but the condition for being sold and used in Japan only is still included in Japanese in the text box to the side of the barcode.
Its probably that cursed game that ended up being a controversy in the past that will end up rotting their names in other countries policy now.