Japanese video game developer and publisher Bandai Namco Entertainment Inc. has laid out its strategy for the next three years following the release of its latest financial report, which showed a notable drop in the company’s profits.
The newly-disclosed report, which details the company’s finances for the past nine months, shows that Bandai Namco suffered a 12.1% drop in profits. Although the company’s year-to-year sales still show a general rise in profits of 5.2%, this recent dip is evidently significant enough to warrant Bandai Namco releasing a new three-year plan designed to boost its profits and work to gain a “full-blown entry” into the Chinese video game market.
The company’s new plan, entitled “CHANGE for the NEXT: Empower, Gain Momentum, and Accelerate Evolution,” makes clear Bandai Namco’s aim to rely on new IPs in order to boost its profits. This direction is not entirely surprising; just a few months ago, Bandai Namco released a cryptic teaser for a “Projekt1514,” which seemed to be unrelated to any existing IPs and suggested that the company may have already started laying the groundwork for this change of direction. In detail, the company’s new plan states:
“… the new Mid-term Plan will aim to evolve the IP axis strategy further and achieve penetration and expansion in global markets. At the same time, we will also strengthen development in regions and businesses with high growth potential. Under the IP axis strategy, we will drive creation of new IP and regionally oriented strategies by unifying the efforts in each region under the ALL BANDAI NAMCO concept.”
Bandai Namco’s most recent title, the long-awaited Dragon Ball FighterZ, has been a resounding success, setting the company on firm footing to start its new Mid-Term Plan, which will begin at the end of March later this year. In addition, while the plan emphasizes new IPs, there are rumors that the company may be working on additional remasters of the Dark Souls series. It seems likely that, while the publisher may shift their focus, Bandai Namco is unlikely to abandon its existing IPs altogether.
There have even been rumors suggesting that Bandai Namco may be helping Nintendo to develop the upcoming Metroid Prime 4, though the company has yet to be confirmed one way or the other.
If the company is looking to gain greater influence in the Chinese market, as stated in the plan, it is quite possible that the company may look to develop more for mobile devices or PC. Gaming consoles were banned in China until 2015, and sales numbers for consoles have been low since the ban was lifted. The Nintendo Switch only released in China last December.
With Dragon Ball Fighter Z setting new sales records, fans of Bandai Namco’s games may have much to look forward to during the next three years as this new plan goes into effect.