TECH

Argus stock falls after 'SAO' creator's tweet claims VR helmet deaths "intentional"

PUBLISHED SUN, NOV 6 2022•3:30 AM EST UPDATED 7 MIN AGO

Sarah Whitten
[Twitter handle]SarahWhit10

KEY POINTS

• Argus Corporation stock fell by 20% after a bizarre tweet from "Sword Art Online" creator and Argus NerveGear inventor Akihiko Kayaba claimed responsibility for VR headset malfunctions – already intensifying into the largest decline of stock since the 1990s.

• Kayaba claims that the malfunctions were intentional to "give life to a world of my imagining."

• The claims were heavily ridiculed and condemned on social media as "insensitive," and some have speculated he may have been a victim of hacking.

In this article ARGUS -24.62 (-20.3%)

[Image]

Akihiko Kayaba speaks to an audience as the logo for "Sword Art Online" is displayed on-screen at the gaming convention Gamescom 2022 at the Koelnmesse - Cologne Exhibition Center in Cologne, Germany, on August 23, 2022.
Hassan al-Amir | AFP | Getty Images

Amid a series of deaths involving the new Argus NerveGear virtual reality headset in Japan, a tweet coming from its inventor Akihiko Kayaba claims these deaths were intentional.

In a tweet tagging Argus Corporation, the Japanese prime minister's office, and the Japanese public broadcaster NHK, an image was posted of a letter ostensibly "from the desk of Kayaba Akihiko" claiming that these deaths were part of a plot to keep ten thousand people hostage inside the new "Sword Art Online" video game.

[Tweet from Akihiko Kayaba]

"By now, you have heard reports of NerveGear users playing this new game dying when people removed the headsets from their heads," the letter said. "They suffer from a severe microwave pulse that damages their head and destroys all brain function, effectively killing them. I would admit full responsibility for all these deaths. However, that is an understatement. In fact, these deaths are completely intentional.

"This is all part of my vision: to give life to a world of my imagining," it continued. "One where anything can happen. That, unfortunately, has to include death. For life is meaningless without death.

"'Sword Art Online' is that world. The NerveGear is the means to that end."

At least 213 people have been confirmed dead according to NHK. Reports state that all victims have suffered severe burns to the head consistent with exposure to microwaves.

Akihiko Kayaba is a multi-millionaire who helped create "FullDive" immersive virtual reality technology. He joined the electronics company Argus Corporation while studying at Teito University and became head of one of the company's research divisions in his sophomore year.

The Argus NerveGear was first introduced in September of 2021 and went on sale in May of this year. "Sword Art Online" was developed to help demonstrate NerveGear's immersive sensory capabilities. The game was announced to be produced under a limited run of 10,000 copies in Japan. Argus commenced pre-orders on Halloween and all 10,000 copies sold out. During the Tokyo Game Show in September, Kayaba had announced that more copies would be produced as Argus continued to enhance server infrastructure, and aimed for a Christmas release in China, Korea, Europe, and North America.

Public anger over insensitive tweets

The response to this announcement was varied, to say the least.

The office of Prime Minister Kishida said it was probably a hoax and that whoever wrote it had terrible taste.

"It's not worth commenting on, especially with more important matters to attend to," a statement said.

Online, reactions were far less measured.

"Impossible," one Twitter user scoffed. "Holding 10,000 hostages? He's too nice. He doesn't have the guts, let alone the technology."

"Making fun of these deaths is an insult to the families and the Japanese people," another person commented. "Kayaba needs to apologize to them."

Others believed this may have been a hoax.

"Either Kayaba has a terrible sense of humor or someone's trying to smear him," one user observed on Facebook. "If it's the latter, they're doing a terrible job at it. Next time, make it believable."

"These hackers ought to have eggs thrown at them," another user quipped.

Some expressed concern for his mental health, a common issue in Japan where there is a culture of overwork that has sometimes resulted in death.

"While they're at it," one commenter said, "the government should look into Kayaba's mental state. He must be dying from overwork."

When reached for a response, Argus declared that Kayaba did not write that tweet.

"This kind of writing is outrageous," a company spokesperson said. "It's filled with nothing but someone's admittedly well-written but empty words."

"Akihiko Kayaba is certainly not the kind of man who would make such outrageous statements."

Falling stocks

Hoax or not, the tweet has caused a severe shock to Argus Corporation stock. It fell by 20% in the moments after the tweet went viral, and experts believe it is one of the most severe declines in stock value since the bursting of the Japanese economic bubble in the 1990s.

Argus stock had earlier today suffered from a decline of 5% when news of the accidents from the NerveGear broke out, and the recent message from Kayaba has only intensified the freefall.

Shareholders have become agitated in the wake of this fiasco, and there have been appeals from management to the public not to let go of their stocks. They were also taking measures to increase data security.

"We are doing whatever we can to bolster our security," the Argus spokesperson declared. "We have intensified our security systems, cleared out and scanned our data for potential viruses and malware, and refreshed our security clearances. We can assure our customers that their data is safe and secure, and we hope to endure this trying time."

Regarding Kayaba, the spokesperson said that Argus had been attempting to reach out to him, with no success.

Likewise, CNBC has not been able to reach Kayaba for comment.