Namco Bandai, the company responsible for the Tekken series and Pac-Man, have announced a huge loss of $342 million for the fiscal year ending in March 2010. They have announced that they will be implementing a “group restart plan” in a bid to lower their outgoings. The likelihood is this will result in cutting back on their workforce.
Employees will be asked to consider voluntary retirement packages, with long term benefits, that they hope will enable them to reduce their worldwide staff by 10%. This will account for roughly 700 jobs. The move will initially cost them $22 million in the 2010 year, but will lead to a saving of $38 million in the following year and then onwards.
The reason for the losses have been blamed on “weak market conditions” by Namco, stating that their titles have really underperformed on the market. Only Tekken 6 from the fiscal year has outsold its projections. This seems to have led Namco to something of a rethink about their market strategy.
While the cutbacks are being made they have announced they will be bringing in a new branch called Namco Bandai Live that is designed to focus on “stage video and music live performances” as well as vowing there will be an “improved quality in home game software”. What all of this means for the long term future of the company is up in the air at the moment, but certainly this year has been one to forget for the gaming giants.