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Bandai Namco cancels projects, reduces headcount to improve margins and reduce costs

Elden Ring and Dragon Ball publisher Bandai Namco has reportedly cancelled multiple projects as it becomes more selective in its production spending.

Bandai Namco cancels projects, reduces headcount to improve margins and reduce costs
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Senior Gaming Editor
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Bandai Namco, the publisher behind mega-hits like Elden Ring, Dragon Ball Sparking Zero, and Tekken, has reportedly cancelled a variety of game projects.

Bandai Namco cancels projects, reduces headcount to improve margins and reduce costs 3

Bandai Namco has a multitude of IP that it makes games with, including franchises like Dragon Ball, Gundam, One Piece, Naruto, and Kamen Rider. The company also publishes games like Elden Ring, which has proven to be one of the best-selling games in Bandai Namco's lineup with over 25 million sales to date--Elden Ring's new Shadow of the Erdtree expansion made up more than half of the group's total Q1 game sales.

The firm's new games are also off to a great start. Dragon Ball Sparking Zero managed to top both the PlayStation and Steam charts for a period, indicating strong sales.

Bandai Namco is not immune to the current stresses of the industry, though. The tech sector, including interactive entertainment like video games, has laid off tens of thousands of workers in a bid to stave off high inflation-driven costs, reduce spending, and create the facade of quarterly growth.

This is also true for the Japanese Gundam-maker. Sources tell Bloomberg's Takashi Mochizuki that Bandai Namco has cancelled or paused development on handful of game projects, including one in partnership with Nintendo. Other affected games include game that also features Naruto and One Piece characters, potentially a sequel to 2019's Jump Force.

"Our decisions to discontinue games are based on comprehensive assessments of the situation. Some employees may need to wait a certain amount of time before they are assigned their next project, but we do move forward with assignments as new projects emerge," the company told Bloomberg in a statement.

As of Q1, Bandai Namco expects to make $7.23 billion in FY25, an 100% increase over last year.

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NEWS SOURCE:bloomberg.com
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Senior Gaming Editor

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Derek joined the TweakTown team in 2015 and has since reviewed and played 1000s of hours of new games. Derek is absorbed with the intersection of technology and gaming, and is always looking forward to new advancements. With over six years in games journalism under his belt, Derek aims to further engage the gaming sector while taking a peek under the tech that powers it. He hopes to one day explore the stars in No Man's Sky with the magic of VR.

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