Namco Bandai losses top $300 million

Tekken 6 sells more than 2 million on 360, PS3, PSP, but publisher's overall revenues drop 11% as it begins major restructuring.

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The coming weeks will see a parade of publishers reporting results for the fiscal year ended March 31, 2010, and that means finding out exactly how well companies handled their first full year in the wake of the global economic downturn. In the case of Namco Bandai, which released its figures today, there was room for improvement.

"The King of Iron Fist" is, appropriately enough, Namco Bandai sales royalty.

For the fiscal year ended in March, Namco Bandai's revenues totaled ¥378.55 billion ($4.12 billion) down 11 percent year-over-year. Worse, the company reported a net loss of ¥29.08 billion ($316.14 million) for the year, compared to a ¥11.83 billion ($128.8 million) profit for the previous fiscal year.

The gaming content segment, which produces console, handheld, and arcade games for the publisher, posted the worst results of any of Namco Bandai's individual business segments. Where the company's toys and arcade chain operations actually posted operating profits for the year, the gaming content segment actually racked up an operating loss of ¥6.85 billion ($74.59 million).

As for how it managed to post such big net losses, the company cited impairment of goodwill (reassessing the value of intangible assets) and deferred tax assets as contributing to the net losses. Additionally, the company announced a "Namco Bandai restart plan" in February, a major restructuring that aims to create a more streamlined integration of its various moving parts. The focus of the reorganization is to enable each arm of Namco Bandai to be able to respond quicker and with more flexibility to market demands.

While those nonrecurring expenses weighed heavily on the publisher's recently finished fiscal year, Namco Bandai expects its current campaign to be a return to form. It projects company-wide revenues to rise nearly 6 percent for the current year to ¥400 billion ($4.34 billion), with the company getting back in the black with a net profit of ¥4.5 billion ($48.83 million). Namco Bandai is especially optimistic with its forecast for the gaming content division, expecting the business to post revenues up 36 percent, with operating profit of ¥3.5 billion ($37.98 million).

The publisher's best seller for the year was the PlayStation 3, Xbox 360, and PSP release of Tekken 6. Namco Bandai reported 1.84 million copies sold of the console versions, with the handheld fighter contributing another 470,000 sales. Curiously, the console total does not include North American sales, while the PSP total is specified to be worldwide. In October, the publisher boasted 2.5 million copies of the game had shipped worldwide. Namco Bandai's other top five best-selling titles were rounded out by Ben 10 Alien Force and its sequel, Dragon Ball Raging Blast, and God Eater, in that order.

Namco Bandai's best platform for the year was the PSP, with 22 new games helping generate sales of 5.48 million copies worldwide. The publisher sold 5.21 million games on the Wii with a dozen new titles for the year, while a slate of 35 new DS games bumped Namco Bandai's sales for the system to 4.22 million copies. That pecking order is likely to change, as the publisher forecasts that it will sell more games for the PS3 than any other system in its current fiscal year, followed in order by the DS, Wii, PSP, and Xbox 360.

Discussion

89 comments
raza3
raza3

the good thing they fixed some errors for tekken 6 like co-op i want them to fix more like story mode

Charliesix
Charliesix

I want to see Gundam Seed Omni vs ZAFT II Plus and Gundam AEUG vs Titans released on PS3 (perhaps PSN only release?). Update the resolution, textures, and add some online play :)

thingta42
thingta42

Soul Calibur 4 came out in 2008 and that game still looks amazing.

RX-78MajiGundam
RX-78MajiGundam

i think the main reason why titles become exclu is because of the systems capabilities and developer's ability to take advantage of it. a gaming company like bamco are not really known for pushing a system to its limits. so for them to make a game sony exclu or micro exclu is downright silly to me.

thingta42
thingta42

I always thought that the lame Soul Calibur Wii game was some kind of test bed for some new future Soul Calibur Third person action game. Hmm i would love for a third person Soul Calibur action game that is actually decent. No Im not talking about over the top GOW style action, but it couldn't hurt the series to try new genres. Again if they went into that direction like what was done in the Wii SC game, then it would be pretty cool. If they spend money and time on it. Especially if you add decent graphics, RPG features, decent third person hack and slash gameplay, strong co-op support for online & offline and a bunch of other stuff. Then i can see it being quie good.

coldsauce09
coldsauce09

tekken just save ur ass namcobandai.. sorry but you cant milk westerners on some gundam sh!t but i im one of those guys who imported it

SavoyPrime
SavoyPrime

Maybe you bastards should bring Tales of Vesperia to North America! :evil:

redneckdouglas
redneckdouglas

Another solution: Bring out Soul Calibur in epic RPG adventure!

Sanosuke123
Sanosuke123

I would buy any of the Tales series if they released one in English I just love the Tales series

Diernes
Diernes

Some of you people have no idea. Tekken 6 didn't suck. Sure it had some really iffy design decisions and terrible online gameplay at release, but they (almost) fixed that completely with a patch early on. The reality is Tekken 6 was the best fighter last year, it is far more balanced and imo fun than SFIV despite the sales that garnished. There is a reason why Tekken was number one in the Japanese arcades all last year while SFIV wasnt even a blip on the radar, simply because it was a better balanced game. However, I am enjoying the super edition of SFIV this time around. namco gonna need to do something special for the release of their next tekken game though, it least console wise. i think this was the first tekken console release that was actually worse than the arcade.

ninja_where
ninja_where

And this wouldn't happen if they actually decided to port the Tales games over to the West. Japan isn't the ONLY country with Tales series fans.

IWKYB
IWKYB

RSM-HQ So they call sell even less? Do you want them fail?

IWKYB
IWKYB

I bought Tekken 6 first day it hit. I can see why people didn't buy it though...the graphics were outdated some of the characters look worst than the PS3 version Tekken 5 /the customization sucked and what's worst no second profile/2 player scenario mode (offline) Bad decisions all around.

cleo2525
cleo2525

how does this company not expect a lose and to carryon in the gaming world when all it really does is constantly being out a new version of a fighting game is beyond me. i agree with the other comment that they need to sort them selves out and refresh some of their older games

thingta42
thingta42

@beny_pimpster that's stupid. How making a game for one console make more money?

VarietyMage
VarietyMage

NAMCO used to have a lot of other arcade-style gaming properties...why aren't they bringing the old properties back for another go-around? Pac-Man will be making a comeback...so why not bring back an updated version of Pole Position? Perhaps a fully-decked-out version of Assault? Rolling Thunder could be made into a 3D shooter (FPS or 3PS) using cover and destructible terrain and their awesome Rolling Thunder soundtrack. And this would be an awesome time to split Tekken Force completely out of the Tekken series and make it a game of its own (once it's completely debugged, play-balanced and had a suitable story written for it). My point is that they could use what they have and make money. Tekken and Soul Calibur are great, but they have forgotten their heritage.

beny_pimpster
beny_pimpster

if these morons made tekken 6 for sony exclusive then they would have made more money..and some people get tired of tekken cause its the same thing over and over and over with more rosters and some bonuses but the fighting still the same

Extra_Life
Extra_Life

They need to start releasing more of the games that the world wants outside of Japan.

thingta42
thingta42

I just wish Namco would release the first Ninja Storm game on the 360.

thingta42
thingta42

@Just-Adam well all my matches ive played people just string combos that make it so once im down im down for good. Just don't like it. Anyway back with Namco, the thing is Namco Bandai is a poor company, because as a company they are not taking risks simple as that. Like releasing the PS3 enhanced version of ToV in Japan only. It's because of stupid crap like that they're in this mess to begin with.

StingrayA
StingrayA

I agree with tripleseed. I picked up FF XIII on xbox 360 and I'm enjoying it, but would've never picked it up if it was a PS3 exclusive. Yeah it wont sell as well on the 360 and graphics are better on the PS3, but a sale is a sale and if your lucky people who were never exposed to FF before, might get hooked and get a PS3. You never know and it doesn't do any harm.

GunBladeHero
GunBladeHero

Namco-Bandai did not sell more on NA because they do not release more games of the Tales series. Tales of the Tempest,Innocence,Hearts,V.S ad the list goes on. For me would be a day one buy for all those games if they came in English!

Just-Adam
Just-Adam

@thingta42 - I don't think I've seen a combo that can KO you from a full health meter .. sure there are combos that drain a lot of the meter but not everyone knows how to execute them and a few actually do .. I don't recall getting KO'd by a loooooong combo in any of my online matches .. But I do get your point .. ppl don't like the whole juggling mechanic .. but it's not that big of a deal in my opinion ..

Tripleseed
Tripleseed

supersonikk: Actually, I believe Tales of Vesperia was exclusive to the 360 because Microsoft purchased time exclusivity to support this silly campaign they have in place to sell more units in Japan, even though, debatably, the Japanese videogame market is falling apart. So say numerous prestigious developers, anyhow. The bottom line is that putting out a product on multiple consoles is only going to increase sales, not decrease them. Final Fantasy XIII, for example, sold surprisingly well on the 360 regardless of some people claiming that the only way you can play an FF game would be on a true Japanese console. I believe that is BS, and frankly Squareenix would be stupid not to release every future Final Fantasy on American consoles as well.

thingta42
thingta42

@Just-Adam Tekken 6 made me punch a hole in the wall today. Why? Because countless times i got locked out of my character. Once you're in a combo it's game over. You may as well put down the controller and watch. That;s my main complaint with the game.

Just-Adam
Just-Adam

I can't imagine at all why Tekken 6's getting all this hate !! .. I just want someone to name me ONE thing bad about it ..

Kayshahna
Kayshahna

T6 does not deserve any of those sales. I had been very much looking forward to that game, and it was by far the most infuriating one I have ever played as I have never in all my life been astonished by such stupidity by the developers. The more Namco suffers after pulling that kind of crap, the better. They have no sympathy from me.

thingta42
thingta42

[This message was deleted at the request of the original poster]

cdripper
cdripper

Funny how SFIV guys are jumping all over this to take a stab at Tekken. Fact is, Tekken 6 sold the best of NB's stuff, so it's not going away anytime soon. SCV and Tekken 7 can't come soon enough, I hope Namco let loose dead weight and sinks more effort into making the sequels better than ever.

thingta42
thingta42

Few games that people have mentioned that will bring profit for Namco if they go ahead on do them. Soul Calibur 5 ( E3 2010 anyone?) Tekken 6 Tag 2 (Yah for Tekken fans) Ace Combat 7 (Long over due) Tales of Vesperia 2 (Would love for this to happen) Tales of Vesperia Enhanced version (PS3 & 360 release Outside of Japan) Tales of Vesperia Movie dub (Still waiting on this) Naruto Ultimate Ninja Storm (Release it on 360 already) There! if i was the CEO or head of Namco i would of done these titles or started work on these months ago. Naruto Shippuden Ninja storm 2 is gonna be the next Namco game i buy no doubt, but that's in August later on in this year. They need more bigger titles or releases to fill the time. I doubt releasing the first Ninja Storm game on the 360 would cost too much. After all most that would need to be done would be the changing of the resolution to 1080p (heard it's 1080p) to 720p and a few online and engine tweaks so it runs on the 360. Im hoping to see somthing about Soul Calibur 5 at this years E3 and maby a early summer 2011 release for it. Tales of Vesperia movie dub should of happened like a year ago. Ace Combat 7 hell yeah! i need a new flight game. And ofc there are other titles and games namco can make to bring back a profit for this year or the next. But damn it's there own fault for loosing $300 million. I would buy all of those products if Namco would just bloody make them.

TheCyborgNinja
TheCyborgNinja

I wouldn't call Tekken 6 bad, but it's definitely crappy compared to SFIV and BlazBlue, both releasing earlier the same year. No excuse.

RX-78MajiGundam
RX-78MajiGundam

they have too many licenses to fail. remember, then own half the anime industry. if push comes to shove, all they have to do is sell some of the license to another producer. maybe for a limited amount of time like atari. they maybe losing alot, but they're still worth so much. i personally thing they have to take more risk. like releasing tales to the west or any other anime.

soulless4now
soulless4now

If they released Tales of Vesperia for ps3 worldwide they could have had more money. Japan isn't the only country that likes that series. :(

Bigbudd0045
Bigbudd0045

@Guzthon Soul Calibur is not coming out on wii, it wont sell enough to be worth it. Anyone who is a hardcore fighting game fanatic has a ps3 or 360. all the industry reports indicate the 3rd parties are scaling back on the wii. the casual users are the one still buying wiis and they wont buy a soul calibur game. after the lacluster performance of hardcore titles, 3rd parties dont want to develop dead ends for the wii. I know performance of hardcore titles is a topic unto itself, but thats the stance the publishers are adopting.

SLjimbolian
SLjimbolian

OUCH. That's not good. Let's hope they can get their act together.

pop4dmc4
pop4dmc4

Thats because of poor quality games this year. Cmon we need great dragon ball game like DBz Budokai 3, and how about some bleach games for ps3 and xbox 360.

g1rldraco7
g1rldraco7

Hope they get their act together before they end up like midway :(

Guzthon
Guzthon

Oh my God! This is bad than I thought. I hope that Namco-Bandai work harder than ever. With a new Soul Calibur game without the Star Wars characters nor Spawn nor any other character (please) (also make one for the Wii with the multi control options), a fighting game of Star Wars (a little different like SC), bring Razing Storm to the PS3 (from the arcade), a compiltion games of Tales (for the PS3, XBOX 360, Wii and PSP), a compilation a Time Crisis (for the PS3 with all the chapters of Richard Miller and the 2 PS2 versions), Ace of Combat and many more. Namco-Bandai should make games for the arcades andfocus a little more of the consoles and the portable consoles. "Have faith and hope NB".

iRaInOnPaRaDeS
iRaInOnPaRaDeS

-_- Serves Namco Bandai justice if ya ask me. Last games I bought from these guys were Naruto Ultimate Ninja Storm, Soul Caliber 4, & Tales of Vesperia. Its been awhile since I bought a game from this franchise and I would have more had they not wanna be stingy with most of their Tales franchise. -_- We're lacking in some quality JRPGs lately, bring in some Tales games! Won't bring in too much money, but probably would've helped on this loss had it been done.

RSM-HQ
RSM-HQ

Tekken 6 was beast. Really enjoyed it, still do. But how am I suppose to prove I'm the greatest with such bad lag Namco??? Online is SSF4's success that's for sure. I say Tekken 7 shoud be PS3 ONLY!!!!!!!!!!!!!!!!!!!!!!!

Triplekill
Triplekill

Meh... I'm just waiting for Tales Of Vesperia 2 whenever it comes out.

Hillsy_
Hillsy_

Aren't Namco Bandai publishing Demon's Souls for Europe? I hope they stay afloat, I need to have my Black Phantom Edition. :)

X_CAPCOM_X
X_CAPCOM_X

That's what they get for canceling the first PS3 port of Tekken 6 and then trying to market the game as new when it was two years old in arcades.

supersonikk
supersonikk

@Tripleseed The 'problem' is the fact that it lost them sales. Street fighter has been on non-PlayStation platforms before this, Tekken hasn't. I'm just saying, if it ain't broke, don't fix it. If they stuck with PlayStation, they would have sold more software and that could have eased their money problems. Sorry if the truth sounds fanboyish. Where do you suppose Namco-Bandai's fans are anyway? They are a Japanese company, and Sony are a Japanese companies and, obviously, Japanese games sell better on Japanese consoles. Just look at Tales of Vesperia - originally an Xbox 360 exclusive published by Namco Bandai, but the poor sales forced them to release it on PS3 as well.

fritigoerd
fritigoerd

Namco its easy give us a new Xenosaga and a new Ace Combat for the PS3

user_93475765
user_93475765

Pffft, Soul Calibur makes Tekken look like garbage, even though they half-assed SCIV. They need to get to work on SCV, and this time make it actually good (for example, no friggin' Star Wars characters, and more content than II, III, and IV combined).

Dorgoth12
Dorgoth12

i love the tekken series but Tekken 6 was a real disappointment, i was very pleased when i heard it was to come out on 360 but then it came, the emphasis on the streets of rage style combat was god-awful and the actual tournament made barely a mention. :(

MATERAZZI_23
MATERAZZI_23

Don't think their luck will change with games like Death to Rights: Retribution