Like other companies, Bandai Namco has shared the financial results related to the last quarter of the current fiscal year. Here it was announced that the company's video game division had a substantial decrease in the generation of resources and, to the surprise of many, multiple titles were cancelled.
During its financial report, Bandai Namco revealed that its digital division, where we mainly find video games, experienced an 8.9% drop in net sales compared to the same period last year, and a 96.5% drop in revenue compared to the same period last year. While it was mentioned that the One Piece and Dragon Ball games performed well internationally, and Armored Core IV was quite popular, there was nothing that was able to match the sales of Elden Ring.
Let us remember that Elden Ring became a resounding success in 2022, reaching million-dollar sales in a way that FromSoftware and Bandai Namco did not expect. Thus, It was more than obvious that any financial result was not going to be compared with what was seen in this period.. This is what the company commented on the matter:
“In the digital business, in addition to valuation losses related to new online gaming titles and other titles introduced this fiscal year, we recorded a scrap loss due to a review of the organization of the titles with a view to the next plan to medium term.
In the future, we will create a portfolio of optimal and well-balanced titles, carefully examine our development system and strengthen development with an emphasis on quality.”
Although the cancellation of the games was not directly mentioned in the financial report, through a question and answer session, A Bandai Namco representative confirmed that at least five games were canceled. This is what he commented:
“The removal of work in progress was decided in accordance with internal rules regarding evaluation, and online games and other products subject to this removal were also implemented in accordance with these rules.
We have also decided to discontinue development on at least five other titles in development and have recorded a loss on disposal.
In addition, since the second half of the previous fiscal year, we have changed our development structure, establishing stricter standards for proceeding with development, reducing titles and changing the method of recording development expenses. The technical research expenses associated with this were higher than expected at the beginning of the year.”
However, it was not all bad news, since it was also revealed that Tekken 8 It has sold more than two million units since its launch, which is pretty rapid growth for the series. On related topics, you can check our review of Tekken 8 here. Likewise, the release date for the DLC of Elden Ring.
Editor's Note:
This is quite sad news. Although we do not know which titles were canceled, it is unfortunately that the developers' work was thrown into the trash. However, it is also true that if these projects did not have a clear future, there was no other choice.
Via: VGC
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