[4] However, DWANGO's dial in approach was soon overshadowed by online multiplayer through the increasingly popular Internet and the service ceased operation in October 1998.

[5] Its Japanese division has continued to flourish, evolving into the telecommunications/media company which now operates the Niconico video hosting service and game developer and publisher Spike Chunsoft.

Huntley had wanted to transition his company Interactive Visual Systems from providing video training to online gaming services.

Initial players paid $1.95 an hour, but by early 1995 the price dropped and ten thousand subscribers were paying $8.95 a month, some calling from as far as Italy and Australia.

The channel officially went live in December 1997;[9] the launch had been delayed due to technical issues with the software that automatically disconnected users from the Internet then connected them to DWANGO's servers.

[10] DWANGO increasingly relied on its low latency (guaranteed 70 ms or less) to compete with services which were cheaper and offered more content.

The company attempted a major marketing initiative earlier in the year that was aborted when they were unable to raise sufficient investment capital.