Bandai Namco Cancels Nintendo-Commissioned Project Amid Game Development Restructure

Bandai Namco, a prominent Japanese video game publisher and developer known for franchises like Tekken and Pac-Man, has announced a sweeping cancelation of multiple in-progress titles and a reduction of its workforce.

This marks a significant shift for the Tokyo-based company, whose broad development initiatives have frequently included licensed projects and collaborations with major partners such as Nintendo.

The company is taking these steps in response to underwhelming consumer demand for a number of its titles, according to a recent report from Bloomberg. One of the highest-profile casualties of this strategic realignment is a project commissioned by Nintendo.

While official details regarding the nature of this Nintendo-backed title remain confidential, its cancellation underscores the scale of Bandai Namco's current development overhaul.

Historically, Bandai Namco has contributed to several Nintendo Switch hits and has played key roles in the development of games such as Super Smash Bros.

Ultimate.

The cancellation of a Nintendo project signals the serious nature of the restructuring. Over the summer, Bandai Namco Studios shuttered its smartphone game 'Tales of the Rays' and announced plans to discontinue the large-scale online RPG 'Blue Protocol' in January.

Additionally, the company has either paused or canceled development efforts on several other licensed projects, including games tied to popular anime series Naruto and One Piece. Bloomberg's report highlights an unusual approach to staff reduction at Bandai Namco Studios.

Since April, approximately 200 out of 1,300 employees were reportedly assigned to idle rooms within the company, a tactic used to encourage voluntary resignations.

Nearly 100 employees have resigned since this policy was implemented, and further departures are expected.

"The Tokyo-based company is taking a traditionally Japanese approach to workforce reduction, assigning staff to unused rooms with no tasks until they choose to leave," Bloomberg sources shared under anonymity to discuss private matters. In response to reports of so-called 'oidashi beya,' or pressure rooms, a Bandai Namco representative clarified: "Our decisions to discontinue games are based on comprehensive assessments.

While some team members may have to wait before receiving new assignments, we move forward with reassignments as projects become available.

We do not operate any system intended to pressure employees into resigning." The company’s decision to streamline development reflects broader market trends, where shifting gamer preferences and increasing production costs compel major developers to focus on proven franchises or more limited project loads.

Despite the setbacks, Bandai Namco remains a significant player on the global stage and is expected to continue collaborating with partners such as Nintendo for future titles on the Nintendo Switch and other platforms. This round of project cancellations, notably including the Nintendo-commissioned effort, serves as a reminder of the volatility of the games industry—even for established giants like Bandai Namco.

As the industry evolves, such strategic restructuring may become increasingly common in response to consumer demand and market realities.

Nintendo Bandai Namco Namco Bandai Bandai Namco Studios Bloomberg Tales of the Rays Blue Protocol Naruto One Piece Tokyo