Bandai Namco has been in the limelight after announcing workforce reductions and the termination of a number of projects. This drastic move comes amidst a decline in demand for some of their games. What's really going on?
Labor Reduction
The workforce reduction at Bandai Namco began in April 2024, following the cancellation of various internal projects, especially those related to mobile and PC games.
According to a report from Bloomberg, the company is taking a traditional Japanese approach to reducing employees by moving them to separate rooms with no duties. "The Tokyo-based company is taking a traditional Japanese approach to reducing staff and sending workers to rooms where they are not assigned any tasks, putting pressure on them to step down voluntarily, said the people, who asked not to be named while discussing private information. Since April, affiliate Bandai Namco Studios Inc. has transferred about 200 of its roughly 1,300 employees to such rooms and nearly 100 have resigned, the people said. More are expected to leave in the coming months, they said."
Suspension of Operations and Cancellation of Game Projects
Bandai Namco is also ceasing operations of some games as part of this restructuring. In the summer of 2024, the company ceased operations of smartphone games Tales of the Rays and plan server shutdowns for Blue Protocol They also decided to stop the development of several games, including those featuring characters from the anime Naruto and One Piece, as well as a project commissioned by Nintendo Co.
This move disappointed many fans who were looking forward to these games. In addition, Nintendo-commissioned projects have also stalled without further details on why. This decision suggests a shift in Bandai Namco's strategy in dealing with the challenges in the gaming market, with a more selective focus on developing new titles.
Official Response from Bandai Namco
Bandai Namco representatives responded to this report and denied the practice of 'oidashi beya'. "Our decision to stop game development was based on a comprehensive assessment of the situation. Some employees may need to wait some time before they are assigned to the next project, but we are moving forward with assignments as new projects arise," said a Bandai Namco representative. "There is no organization like 'oidashi beya' at Bandai Namco Studios designed to put pressure on people to voluntarily resign."
This explanation emphasized that the project stoppages and employee transfers were part of the company's efforts to adjust to industry challenges. They ensured that employees would get new assignments as new projects emerged.
Impact on the Future of Studios and the Gamer Community
As of now, there is no clarity on how these measures will affect the studios under Bandai Namco or other games in development. Server shutdown Blue Protocol and cessation of operations Tales of the Rays raised concerns among the gamer community. Many wondered if this decision would affect the quality and continuity of Bandai Namco's games going forward.
Bandai Namco has taken the significant step of reducing its workforce and halting a number of projects. While the company is trying to adjust to market conditions, this decision has a significant impact on the gamer community and their employees.
What do you think of this decision by Bandai Namco? Is this the right move to adjust to the industry conditions or will it hurt them in the future?
Source: Bloomberg (Takashi Mochizuki) via Siliconera
