Reports claim that Bandai Namco has reportedly indirectly laid off employees and canceled several video game projects.
The situation comes as the video games industry is taking a downturn following the surge from the coronavirus pandemic. Instead of directly firing workers, the Japanese company reportedly adopted a "traditional Japanese approach."
Bandai Namco Indirectly Lays Off Employees
This sends employees to "oidashi beya," which is roughly translated as "expulsion rooms." Bandai Namco gives these workers no tasks. This is a method that has been used by some companies under strict labor-protection laws.
The process is meant to pressure employees to voluntarily quit the company themselves. Bloomberg sources said that roughly 200 out of the studio's 1,300 workers were sent to these expulsion rooms since April of this year. They also note that about 100 of the staff members have already quit and more are expected to separate.
A Bandai Namco representative denied the existence of these expulsion rooms at the studio. However, they did acknowledge that some workers may need to wait quite sometime before they are given their next assignment for a particular project, according to 80lv.
On top of the indirect layoffs, Bandai Namco reportedly canceled several video game projects or suspended their development. These include ones that feature characters from animes such as Naruto and One Piece.
There were also reports that one project that was commissioned by Nintendo was among the canceled or suspended projects. Bandai Namco earlier this year shut down MMORPG Blue Protocol following the game's underwhelming performance.
The Video Games Industry
Bandai Namco's shares dropped by as much as 1.2% in Tokyo on Wednesday, Oct. 16, 2024. The Japanese company said that its goal was not to push employees to quit their work, Bloomberg said.
The representative said that the studio's decisions to discontinue games were based on "comprehensive assessments of the situation."
The situation comes as Bandai Namco has been a staple in the gaming industry since it was founded in the 1980s. Some of its most popular franchises are Dragon Ball and Gundam.
The studio is now under immense pressure to cut costs and adjust to the post-pandemic drop. This is something that is similarly seen with Bandai Namco's competitors. Much of the effects were felt by smartphone and online games.
The development also shows a sector that is experiencing higher development costs and players' limited attention spans for new games. The situation even extends to other companies such as Sony and Square Enix, according to the Japan Times.
