Yuji Naka posted a photo to celebrate his birthday NIGHTS Enters Dreamsbut delete from group Naoto Ohshima, as himself the author of the game and Sonic The Hedgehog. Obviously, there is no bad blood between the two.
As you can see, the cancellation wasn’t very refined in the sense that Naka limited himself to defaming his former colleague quite frankly.
From what we can infer, the friction between the two must have arisen due to Balan Wonderworld, a very recent bankrupt title that Naka and Ohshima presented together.
As you know, the game really burned Naka so much that it was met with many criticisms and sued Square Enix. The blame is about launching the game in a state of incompleteness and jeopardizing its image as a developer.
Also, Ohshima is the vice president of Arzest, a company accused by Naka of being the main custodian of Balan Wonderworld.
Source: Multiplayer
