Bandai Namco’s silently Laid Off 117 people Amid Declining Demand

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Bandai Namco has silently laid off 117 people between April 2024 and February 2025 as per Japan Pension Service database

Bandai Namco Holdings Inc., a prominent player in the gaming industry, has recently faced significant challenges.

The company has been reducing its workforce while canceling several video game titles due to poor demand and rising costs.

Here is what is in the article!

  • Bandai Namco faces layoffs, game cancellations, and financial struggles amid rising costs and declining demand.
  • The company is streamlining operations and planning a quality control overhaul to address these issues.
  • Despite recent game successes, financial losses and declining player trust threaten their market position.

Bandai Namco’s Challenges

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Bandai Namco Rising Challenges

Introduction to the Crisis

Bandai Namco Studios has recently faced significant challenges, including layoffs and the cancellation of several video game titles.

The company has been reducing its workforce, affecting nearly 200 employees out of 1,300, with many being pressured to leave voluntarily by being assigned to “expulsion rooms” with minimal tasks.

The decision to cancel these titles was made due to what the company terms “lackluster demand,” indicating a decline in consumer interest and revenue.

This trend is part of a broader gaming industry challenge, where rising costs and plateauing demand have led to numerous layoffs and studio closures worldwide.

Despite these challenges, Bandai Namco continues to release successful titles, such as a recently launched game that sold over 3 million copies globally in just 24 hours.

The company’s goal is to streamline operations and enhance quality control by making tough decisions.

Cancellation of Games and Financial Struggles

Bandai Namco has faced significant financial struggles and game title cancellations, leading to a major overhaul in their quality control processes.

Several key titles, including those featuring popular licenses, have been canceled due to lackluster demand and high development costs.

This has resulted in major financial losses, with Bandai Namco’s online game subsidiary becoming insolvent due to an 8.2 billion yen loss.

The company’s financial woes are further compounded by ongoing restructuring and cost-cutting measures, such as employing “expulsion rooms” to pressure staff into voluntarily leaving their positions.

The cancellation of these titles has a ripple effect on player expectations.

Fans of anticipated games are left disappointed, as titles like MMO games and mobile games are no longer in production.

Despite the success of certain recent releases, such as Dragon Ball: Sparking ZERO, the overall impact of these cancellations is a decrease in player trust and a potential loss of market share.

Quality Control: The Need for Revamping Bandai Namco’s Practices

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Need for Quality Control

Quality control at Bandai Namco has faced significant challenges. The company’s recent game cancellations and financial struggles have highlighted the need for a rigorous overhaul of its development processes.

Reddit User – Murmido said: “I would love to see Bamco undergo a quality control overhaul like Capcom did a decade ago, but I have doubts with news like this“

To address these issues, Bandai Namco should implement strict, proprietary quality standards for all products, including regular audits and inspections.

The company should also establish a commendation system to recognize excellent suppliers and conduct regular quality study sessions to share information on changes to safety standards.

Additionally, Bandai Namco should focus on enhancing employee awareness and knowledge of quality and safety.

By prioritizing quality over quantity, Bandai Namco can ensure the reliability and safety of its products, thereby enhancing the gaming experience for future players.

Future Prospects and Reviews by Users

Many employees have resigned after being moved to “oidashi beya” rooms, where they are given nothing to do to pressure them into leaving voluntarily.

The cancellations of several game titles, including popular franchises like One Piece and Naruto, have been attributed to low demand and projected financial struggles in the gaming industry.

Despite releasing a highly successful game in Dragon Ball: Sparking Zero, which sold over three million copies in its first day, Bandai Namco’s future remains uncertain.

Reddit User – Murmido said: “Bandai Namco has made some baffling decisions in these last few years. Between all the crap to mediocre Anime license games, huge failures with Blue Protocol and Gundam Evo, to whatever compelled them to greenlight Unknown 9. They are overdue in an overhaul that results in more quality then less quantity.”

This shift towards quality is seen as a step in the right direction by industry analysts, and the company has recently announced plans to implement stricter quality control measures.

Fans are concerned that the layoffs and cancellations might compromise the quality of upcoming games.

There is a growing demand for transparency and accountability within Bandai Namco’s development processes to restore user trust and ensure that future games meet high standards.

 Bandai Namco’s decision to cut its workforce and cancel multiple gaming titles signifies a critical juncture for the company. While these moves aim to stabilize finances and optimize development structures, they also raise concerns about long-term impact on game quality and player satisfaction.