October 15th 2024.
It's been a tough year for the video game industry, with over 13,000 job losses already recorded in 2024. The pandemic played a major role in this, as companies hired more employees than they could sustain and relied on the increased sales during lockdown to continue. However, as the year progressed, it became clear that this growth was not sustainable and something had to be done to keep profits up.
Bandai Namco, a well-known Japanese publisher, has become the first in the country to make the difficult decision of cutting staff. While this may not come as a surprise, their approach is quite different from what we've seen in Western companies. Instead of outright layoffs, they have placed around 200 employees in "expulsion rooms" where they have no work to do. This may seem odd to some, but in Japan, it is seen as a more favorable way of leaving a company, which can be beneficial for future job opportunities.
However, this practice has not been well received by all employees, with reports of 100 staff members quitting so far. It's a tough situation for both the company and its employees, but Bandai Namco stands by their decision and denies the use of these rooms. It's also worth mentioning that this move comes at a time when their recent projects, such as Elden Ring and Dragon Ball: Sparking! Zero, have been successful.
Unfortunately, these successes were not enough to keep the company from making tough decisions. According to reports, Bandai Namco is trying to reduce their staff from 1,300 to 1,100, and some projects have been discontinued as a result of thorough assessments. This news is in line with what we've seen from Western publishers, who have also made significant layoffs despite making billions in profits.
The main issue for Bandai Namco seems to be their mobile and online titles, with the closure of games like Blue Protocol and Tales Of The Ray resulting in a loss of ¥21 billion. This trend is not unique to the company, as even Square Enix, who has not laid off a significant number of employees, has faced similar challenges with their mobile titles. It's believed that the oversaturated mobile market, coupled with the demand for constant attention from live service games, has contributed to this trend.
Despite these challenges, it's unclear whether this move by Bandai Namco will become a trend in Japan or if it's just a one-time occurrence. What is certain is that the video game industry is still facing a significant number of job losses this year. Even though the cancelled projects at Bandai Namco were primarily for console games, there were also reports of a project commissioned by Nintendo, a long-time collaborator of the company.
It's a difficult time for the industry, but there are still positive things to look forward to, such as new game releases and exclusive content. To stay updated, you can sign up for our newsletter, follow us on Twitter, and leave a comment below. Additionally, you can also submit letters and features through our Submit Stuff page. We appreciate your support and look forward to bringing you the latest gaming news.
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