I don't know the way it works in Japan, but in America it is possible to use bankruptcy as a means of eliminating debt and hopefully restructuring and becoming profitable again.
I declared bankruptcy three or four years ago, and due to my income at the time, I was right at the threshold of being eligible for Chapter 11 (in my favor), which means that I didn't have to pay the debt back. Between my wife and I, we wrote off a total of over $80,000 worth of debt.
If you're curious, a lot of it was credit card debt. A lot of it was also because of a vehicle which I got a loan for (brand new) and didn't make any payments on. A lot of it was medical, as we recently had our first child. Lots of miscellaneous things, like a rent payment that I never made on an old apartment I had. I used to drive through toll-ways without paying, and there was like $1,000 owed in my name. Minor things like utility bills, phone service providers that I didn't pay back, you get the idea.
If it is similar in Japan, perhaps they will liquidate the assets of the company and eliminate their debt, and the company can try and make profits again. I'm not sure how a partially coded videogame can be liquidated, though.
Edit: Made shorter; I'm rambling too much.