Bandai Namco Online, following severe financial losses, will be dissolved and merged with its parent company, Bandai Namco, which will also control the former’s IP catalog.
Several months ago, Bandai Namco Online posted a severe loss of more than 8.2 billion yen (over $51 million). After that, in August, they canceled MMORPG Blue Protocol’s global release and announced a January 2025 shutdown for the Japanese version, which they couldn’t quite turn around. Those reported losses piling up, including a loss the prior year, and Blue Protocol the only FY2023 new release on the schedule even led to the company being considered insolvent.
Insolvency Isn't bankruptcy, but it means that the company is in serious financial distress. The news, a few months after that cancellation, that Bandai Namco Online will fold and be absorbed into its parent company doesn't come as much of a surprise.
Bandai Namco, in a press release (translated via Google Translate) says the company will merge into the parent company on April 1, 2025 in “an absorption-type merger”. Bandai Namco will thus be the surviving company, while the subsidiary, founded back in 2009, will cease independent operations. Active IP will be operated by Bandai Namco Entertainment.
“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. 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,” the announcement reads.
