FinancialBandai Namco
Namco Bandai Holdings Annual Report 2010
1 Sept 201072 pages~196 min full read
Bandai Namco reported a net loss of ¥29.9 billion for the fiscal year ending March 31, 2010, driven by a 91.6% collapse in operating income and poor performance in the Game Contents and Amusement Facility segments.
The company’s software division struggled significantly, with half of its 86 video game releases failing to reach profitability, compounded by ¥12.75 billion in goodwill impairment and ¥21.2 billion in inventory devaluations.
To restore profitability, the company launched the 'Restart Plan' in April 2010, which includes a workforce reduction of 800 employees and the closure of 63 unprofitable amusement facilities.
The organizational structure was overhauled by merging game, visual, and music units into a single Content Strategic Business Unit to transition from an outlet-based model to a 'content first' strategy for maximizing IP value.
Management set a target of ¥6.5 billion in cost reductions by fiscal year 2011 while aiming for ¥400 billion in net sales through a 'selection and concentration' approach to development.
Future growth strategy focuses on expanding into mobile and social networking markets while leveraging global IP projects, such as the 30th anniversary of PAC-MAN.
Bandai Namco faced a severe financial downturn for the fiscal year ending March 31, 2010, reporting a net loss of ¥29.9 billion and a 91.6% collapse in operating income. This decline was primarily driven by a global economic recession, a stagnant DVD market, and a lack of hit software titles, with half of the company’s 86 video game releases failing to achieve profitability. Significant special losses, including a ¥12.75 billion goodwill impairment and ¥21.2 billion in inventory devaluations, further strained the balance sheet. While the Toys and Hobby unit remained resilient through core franchises like Gundam and Masked Rider, the Game Contents and Amusement Facility segments suffered heavy losses across Japan, Europe, and the Americas.
In response, the Group initiated the "Restart Plan" in April 2010 to restore profitability and operational agility. Central to this strategy is a shift from a vertical, outlet-based structure to a horizontal "content first" model. This reorganization merged the previously separate game, visual, and music units into a single Content Strategic Business Unit (SBU) designed to maximize Intellectual Property (IP) value across multiple platforms simultaneously. Structural reforms also included a workforce reduction of 800 employees, the closure of 63 unprofitable amusement facilities, and a streamlined management hierarchy that more closely links the holding company to core operations.
Looking forward, the Group aims to achieve ¥6.5 billion in cost reductions by fiscal year 2011 while targeting ¥400 billion in net sales. Strategic priorities include a "selection and concentration" approach to game development, expanding into mobile and social networking markets, and leveraging global IP projects such as the 30th anniversary of PAC-MAN. Despite the significant net loss, the Group maintained a stable dividend policy and reinforced its corporate governance and CSR frameworks to ensure long-term stability and global growth.
