Namco Posts $342m Loss, Cuts Over 600 Jobs

[John Funk]

Namco Posts $342m Loss, Cuts Over 600 Jobs

Despite predictions that March '10 would see the company turning a profit, Namco-Bandai is now expecting heavy fiscal losses, and will be reducing its work force accordingly.

The only word that comes to mind here is "Ouch": Initially, Namco-Bandai's fiscal masterminds predicted that the company would see a profit of ¥8.5 billion ($93 million) as of March 2010 (presumably referring to fiscal year '09). Unfortunately, the company has revised said estimate downward: very downward.

Instead of the hoped-for $93 million profit, Namco-Bandai number-crunchers now estimate that the company will be posting a loss of ¥31 billion ($342 million). In other words, the estimate was off by over $400 million - clearly, somebody's getting fired over that. And, apparently, they're taking over 600 of their coworkers with them: Namco expects to reduce its headcount by 630 (out of an estimated 7,000 employees) over 2010 to compensate for financial difficulties.

The only reason given for this dramatic turn in fortunes is "poor performance of key titles," according to Kotaku [http://kotaku.com/5462073/namco-bandai-to-cut-over-600-jobs], though none of these "key titles" are mentioned by name. Nor is it clear whether this just refers to the company's performance in its native Japan, or this loss accounts for all Namco-Bandai titles worldwide.

If the former, we recommend not launching Tales of Graces a week before Final Fantasy XIII [http://www.amazon.com/Final-Fantasy-XIII-Playstation-3/dp/B000FQ2DTA/ref=sr_1_1?ie=UTF8&s=videogames&qid=1278964269&sr=1-1] next time around. If the latter... well, okay, I don't know what I'd recommend Namco-Bandai do differently in regards to the West, but it's still probably a bad idea to pit your latest Tales game head-to-head with Final Fantasy.

Alas, it looks like Tekken 6 [http://www.amazon.com/Dynasty-Warriors-Gundam-2-Playstation-3/dp/B001L8DKIY/ref=sr_1_1?s=videogames&ie=UTF8&qid=1280173479&sr=1-1] just didn't cut it.

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[Cherry Cola]

Well if they didn't make the gamepad edition so damn expensive, I might have bought it along with Tekken 6!

Although I don't want them to die... I guess I can go and buy another Dynasty Warriors Gundam game.

They are some of the best hack'n'slashers ever anyway.

 

[TheNamlessGuy]

DELETED

 

[jackanderson]

Shame. I spent hard scrounged money on Tekken 6! Sometimes I wish I hadn't (mediocre Scenario Campaign mode and an online finished match success rate of 1 in 30 which has been reduced to 3 out of 4) but that's missing the point.

Dynasty Warriors... just fucking kill it already!!

Eh, poor Namco regardless. I hope they don't go the way of poor old Midway. Now I'll never get that polished TNA iMPACT! 2!!

 

[.Warheart]

Haven't played any of their games except for Tekken, and I didn't like it, so meh.

 

[Therumancer]

The big question of course here is whether or not they are lying to justify the layoffs. Sort of like the casinos I worked for did. Today companies measure success or failure in terms of projected growth, and if they don't meet that goal they consider however short they are to be a loss. Only Namco can tell you if they really lost money or not, and if they are laying off people to increase profits or if they really can't afford to employ them and stay afloat.

That said I consider this "meh".

Bad economy kids, even if it's the worst case scenario, they should have expected it. What's more laying off 600 people isn't going to help make that economy any better.

 

[electric_warrior]

They make the same games over and over again, be it dynasty warriors, tekken or whatever else it is they do. They never innovate, ever.

I hope they don't go under, but honestly it's just for the sake of all the poor people losing their incomes, not for the love of their games.

 

[cobra_ky]

They make the same games over and over again, be it dynasty warriors, tekken or whatever else it is they do. They never innovate, ever.

I hope they don't go under, but honestly it's just for the sake of all the poor people losing their incomes, not for the love of their games.

So resting on the laurels of established franchises and ignoring fresh IP isn't an effective business model? Somebody should tell Activision about this!

EDIT: Sorry, looks like my point was unclear. What I meant is that this strategy is going to end up sinking Activision just as it did Namco.

 

[electric_warrior]

So resting on the laurels of established franchises and ignoring fresh IP isn't an effective business model? Somebody should tell Activision about this!

No, but releasing basically the exact same game year after year after year might lose them quite a lot of business.

I say this as someone who owns four tekken games and four dynasty wrriors games. I know why i stopped buying their games, I assume their financial woes may be due to other people stopping for similar reasons. At least activision make some changes to their titles other than graphics, have you played dynasty warriors 4 and 5? they're the same damn game right down to the graphics.

 

[Pipotchi]

They make the same games over and over again, be it dynasty warriors, tekken or whatever else it is they do. They never innovate, ever.

I hope they don't go under, but honestly it's just for the sake of all the poor people losing their incomes, not for the love of their games.

So resting on the laurels of established franchises and ignoring fresh IP isn't an effective business model? Somebody should tell Activision about this!

The IPs still have to be good, you cant rest on the laurels of a bunch of games no longer interesting or fun. Ridge racer and Dynasty Warriors specifically

 

[Aura Guardian]

Tekken 6 was so bad. Even though I hate the Tekken games, Tekken 6 was the worst. And some of my friends who were huge fans of Tekken sold back Tekken 6. Sorry Namco.

 

[Cherry Cola]

I guess I can go and buy another Dynasty Warriors game.

Dynasty Warriors... just fucking kill it already!!

They make the same games over and over again, be it dynasty warriors...

You guys might want to talk to Koei and not Namco Bandai. Gundam is a licensed property (currently in Namco Bandai's possession), therefore DW:Gundam 1 & 2 are the only DW games with Namco Bandai involvement.

That isn't to say that Namco Bandai isn't guilty of sequel hell. Soul Calibur, Tekken, Naruto (PS2-PS3), etc... What they need to do is stop resting on the laurels of licensed anime properties (as that seems to be there bread and butter).

I mean, how cool would it be to make a Naruto game where you create your own ninja instead?
How about a Gundam game where you can upgrade, customize and the gameplay isn't terribly broken?
Maybe combine your fighting game franchises (ala KoF)?
And a new IP or two wouldn't hurt...

Silly me!

Still, my comment does make sense! Because I've played the first DW Gundam game!

 

[xyrafhoan]

Namco rarely puts out innovative games, and when they offer "exclusive" titles to a console they back away 2 years later and release it for the PS3 (see: Tales of Vesperia, Eternal Sonata). ToS2 bombed, pretty much every other franchise they put out in this gen has bombed, and Monolith-Soft has been bought out by Nintendo. I haven't played a Namco game since Baten Kaitos Origins, which was a product of Monolith Soft and tri-Crescendo.

 

[Jared]

Another firm, having to lay off employees...damned shame...

Seems its becoming the thing as of late. My heart to those poor guys who get the slip

 

[WhiteTigerShiro]

Bad economy kids, even if it's the worst case scenario, they should have expected it. What's more laying off 600 people isn't going to help make that economy any better.

Perhaps, but at the same time, keeping those 600 people employed when you can't afford it and thus risking the company going out of business and then sending about 7,000 people into unemployment would be even worse for the economy.