Bandai Namco Halts Arcade Game Development
A Pac-Man arcade game for sale is tempting to many gaming lovers, but apparently Bandai Namco’s newer titles don’t have the same draw for consumers. Dipping profits have led the company to halt their current arcade game developments for the time being.
Bandai Namco’s History
Bandai Namco wasn’t always “Bandai Namco.” Two companies, Namco and Bandai, merged in 2005 to create the umbrella corporation known today. Both individual branches were founded in the 1950s in Japan.
Namco started in 1955 in Tokyo as “Nakamura Manufacturing,” which later had a name change to Nakamura Amusement Machine Manufacturing Company, abbreviated NAMCO. Originally, Namco focused on motorized children’s rides. Bandai began in 1950, also in Tokyo, and became popular due to their widespread production and distribution of children’s toys, including plastic model sets.
Declining Profits Causing Worry
Bandai Namco projects a net sales figure of 560 billion yen ($4.91 billion USD). But as impressive a figure as that is, it is a 1% decrease from the prior fiscal year. The drop in profits was pinpointed to a sharp decline in arcade game sales. During a nine-month stretch in fiscal year 2015, arcade game sales earned the company 42.5 billion yen ($373 million USD). During the same nine month stretch this fiscal year, sales only reached 34.5 billion yen ($303 million USD). The company has also seen a decline in sales for their Yo-kai Watch toy line, which has most likely contributed to the organization’s cautious business move.
Since no other arcade publishers have posted lower earnings or announced cutbacks in development as of yet, it is hard to tell whether or not the declining profits will affect the entire industry or Bandai Namco specifically. Objectively, it seems as if the company is waiting to see how its current arcades will fare in 2016 before continuing their development efforts.
While development has stopped, Bandai Namco still plans to release Tekken 7 Fated Retribution and Gundam Extreme Versus Maxi Boost ON. Since both series have earned the company significant profits in the past, sales of these arcade games could be the key to boost profits out of their slump.