1. Overexpansion and Poor Management
XPEC grew too fast without solid planning. They invested in too many projects and lost control over operations and finances.
2. Weak Original IP and Strategy
They tried to shift from outsourcing to creating their own IP, but lacked strong titles and publishing power.
3. Scandal and Financial Collapse
A failed acquisition deal in 2016 revealed financial issues and caused their stock to crash. This destroyed trust and led to the company’s downfall.
4. Internal Chaos
Former employees reported poor communication, high turnover, and overwork. Projects often suffered due to mismanagement.