Work immediately began on a sequel titled Dark Chronicle, released as Dark Cloud 2 in North America. Intended to be a launch game for the Japanese release of the PlayStation 2, it was delayed before the console's launch in March 2000 to allow further development, eventually being released in Japan in December 2000, and worldwide in 2001. Level-5's first full-scale production was the action role-playing game Dark Cloud, developed under contract by Sony Computer Entertainment. Soon after being created, the company had eleven employees. The name, "Level-5", was a reference to Japanese school report cards, where "Level-5" is the highest possible mark. Since Hino did not originally believe that his team could become an independent developer, he formed a partnership with Sony Computer Entertainment, who would allow him to develop for their upcoming PlayStation 2 under the condition that he set up his own company. Level-5 was established in October 1998 by Akihiro Hino and his development team at Riverhillsoft, following the release of OverBlood 2. The company is best known for their Dark Cloud, Professor Layton, Inazuma Eleven, Ni no Kuni, Yo-kai Watch, and Snack World franchises. Level-5 began self-publishing its games in Japan by the late 2000s, with other companies such as Nintendo handling publishing worldwide. Early in its history, the company enjoyed a close relationship with Sony Computer Entertainment, with many of its games then funded by and produced in conjunction with them. The company was founded in October 1998 by Akihiro Hino after he departed from Riverhillsoft. is a Japanese video game developer and publisher based in Fukuoka.
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