Naka wasarrestedin November 2022 and again the following month under Japans Financial Instruments and Exchange Act.
In March 2023, Naka acknowledged his guilt during a court hearing.
He left Sega in 2006 and founded indie developer Prope, who primarily released iOS and Nintendo Wii games.

In 2018 Naka joined Square Enix and re-united with Sonic co-creator Naoto Ohshima to work on 3D platformerBalan Wonderworld.
Balan Wonderworld was released in 2021 to near-universal derision, and Naka left the company two months later.