Bandai Namco Online, the digital subsidiary of gaming giant Bandai Namco, is set to dissolve and merge with its parent company following significant financial losses. The decision, announced via an official statement, will see the company absorbed into Bandai Namco Entertainment, which will take over management of its intellectual property catalog.
This development follows a tumultuous period for Bandai Namco Online, which reported an 8.2 billion yen loss (approximately $51 million) earlier this year. The financial strain was exacerbated by the cancellation of the global release of Blue Protocol, the company’s ambitious MMORPG, and the planned shutdown of its Japanese servers by January 2025. The cancellations marked a critical failure to revitalize the company’s fiscal performance, with Blue Protocol being its sole major release for fiscal year 2023.
Despite efforts to stabilize, the continued losses over successive years ultimately rendered Bandai Namco Online insolvent. While insolvency stops short of bankruptcy, it signals severe financial distress, making the decision to merge with Bandai Namco a logical step to preserve the company’s assets and IPs.
The dissolution will officially take effect on April 1, 2025, in what is described as an “absorption-type merger.” Bandai Namco Entertainment will be the surviving entity, with Bandai Namco Online ceasing independent operations. This restructuring aims to consolidate resources and adapt to evolving challenges in the gaming landscape.
A statement from Bandai Namco highlighted the strategic purpose behind the merger, emphasizing the need to respond to changes in the digital gaming market. “This merger is being carried out with the aim of responding to the recent changes in the gaming environment and strengthening the business management system for the entire digital business,” the company noted. “We will continue to aim to provide high-quality content that can be enjoyed for a long time and diverse entertainment that exceeds the expectations of our fans.”
Founded in 2009, Bandai Namco Online developed and managed several successful online titles, but the cancellation of Blue Protocol marked a significant blow to its credibility and future prospects. With the merger, Bandai Namco Entertainment aims to salvage value from its subsidiary’s portfolio and leverage its assets within a more streamlined corporate structure.
This move reflects broader trends in the gaming industry, where companies are adapting to shifting consumer demands and financial pressures. As the merger approaches, Bandai Namco Entertainment is likely to focus on optimizing its digital operations to remain competitive in the global market.
