In a move reflecting the current challenges within the gaming industry, Bandai Namco, the publisher responsible for blockbuster titles such as Elden Ring, Dragon Ball Sparking Zero, and Tekken, has reportedly cancelled or paused development on several game projects.
While the company’s recent releases like Elden Ring and Dragon Ball Sparking Zero have seen significant success, Bandai Namco, like many other gaming giants, is not immune to the pressures of the current economic climate. The tech sector, including the interactive entertainment industry, has witnessed widespread layoffs and cost-cutting measures in response to high inflation and a need to achieve quarterly growth targets.
Sources familiar with the situation have informed Bloomberg that Bandai Namco’s decision to axe these projects includes a collaboration with Nintendo, as well as games featuring characters from popular franchises like Naruto and One Piece. This might even involve a sequel to 2019’s crossover fighting game, Jump Force.
In a statement to Bloomberg, Bandai Namco acknowledged the cancellations and said that these decisions are based on “comprehensive assessments of the situation.” They also assured their employees that while some may experience a waiting period before being assigned to new projects, they will be accommodated as new projects emerge.
Despite these setbacks, Bandai Namco remains optimistic about its future performance. In its first quarter earnings report, the company projected an impressive 100% year-over-year increase in revenue, reaching $7.23 billion for fiscal year 2025. This positive outlook suggests that the company is strategically navigating the current industry challenges and remains committed to delivering high-quality gaming experiences to its players.
However, the cancellation of these projects serves as a reminder that the gaming industry, like many others, is experiencing a period of adjustment. As companies grapple with economic headwinds, strategic decisions like game cancellations are likely to become more common. It remains to be seen how these industry-wide changes will shape the future landscape of video game development.