BANDAI NAMCO Group Medium-Term Management Plan (FY2007.3–FY2009.3)

Key insights

6 takeaways

01
The BANDAI NAMCO Group targets consolidated sales of 550 billion yen and operating income of 58 billion yen by the end of fiscal year 2009.See it on page 6
02
The company is transitioning into an 'all-round network company' to distribute content across home consoles, mobile platforms, and arcade environments.See it on page 24
03
Management is implementing a centralized Shared Service Center to reduce indirect operational costs by 15 percent.See it on page 13
04
The Game Contents business unit is adopting a 'selection and focus' strategy to improve development processes and address performance inconsistencies in major titles.See it on page 23
05
The group plans to leverage its intellectual property across multiple media platforms, including visual and music segments, to mitigate risks from shifting market demographics.See it on page 26
06
The strategic roadmap for the FY2007.3–FY2009.3 period prioritizes the 'Entertainment Hub' concept to optimize the business portfolio and expand international operations.See it on page 19

Summary

The BANDAI NAMCO Group aims to establish itself as the world’s premier entertainment organization by fostering deep organizational integration and maximizing group-wide synergies. Spanning the fiscal years 2007 through 2009, this strategic roadmap targets consolidated sales of 550 billion yen and operating income of 58 billion yen. The core objective is to transition into an all-round network company that effectively leverages its diverse content assets across home consoles, mobile platforms, and arcade environments to mitigate risks associated with shifting market demographics and evolving consumer preferences.

Central to this growth strategy is the Entertainment Hub concept, which prioritizes the optimization of the business portfolio and the expansion of international operations. To achieve these financial targets, the group is implementing a rigorous restructuring of its back-office functions through a centralized Shared Service Center, with an explicit goal of reducing indirect operational costs by 15 percent. By consolidating these administrative processes, the organization intends to streamline its internal operations and redirect resources toward high-growth areas, ensuring a more agile response to global market demands.

The Game Contents strategic business unit serves as a primary focus for revitalization, necessitating a shift toward a selection and focus approach. This involves refining development processes and addressing previous performance inconsistencies in major titles by better utilizing intellectual property across multiple media platforms. By emphasizing high-quality original content production and multi-platform distribution, the group seeks to strengthen its visual and music business segments. These initiatives collectively aim to enhance profitability and solidify the company’s competitive standing within the global entertainment landscape by the end of the three-year period.