The State of Bandai Namco
Recently, Bandai Namco celebrated the successful launch of Dragon Ball Sparking! Zero, which sold an impressive 3 million units within just 24 hours. However, this achievement has been overshadowed by reports of the company pressuring 200 of its 1,300 employees in Japan to voluntarily resign. This approach has been labeled as a short-sighted strategy to boost profits, raising concerns about the company’s treatment of its workforce.
Labor Practices Under Scrutiny
According to a recent Bloomberg report, Bandai Namco appears to be navigating around Japan’s strict labor laws by stripping these 200 employees of all their work responsibilities. Allegedly, nearly half of those pressured have already exited the company. This move coincides with the cancellation of three anticipated games, including new installments for popular franchises such as Dragon Ball, One Piece, and Naruto, indicating a troubling shift in the company’s strategic direction.
Context of the Gaming Market
Despite the turmoil at Bandai Namco, the Japanese gaming industry is on the rise, projected to grow by 6.66% annually until 2029. The gaming developer’s challenges are attributed to underperformance in its online division, which reported a considerable net loss of approximately $51.35 million last fiscal year. This predicament highlights a broader trend where younger audiences seem to favor multiplayer games, particularly Player vs. Player (PvP) formats. Meanwhile, single-player experiences, previously dominant among many segments, represent a niche where Bandai Namco and other competitors like From Software, Nintendo, and Capcom could capitalize on their strengths.
