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Namco Bandai slashes income forecast by 55 per cent

Leading Japanese videogame publisher and toy manufacturer Namco Bandai Holdings Inc. has slashed its annual net income forecast from 24.4 billion yen to 11 billion yen (USD 93.7 million) - a drop of 55 per cent.

Leading Japanese videogame publisher and toy manufacturer Namco Bandai Holdings Inc. has slashed its annual net income forecast from 24.4 billion yen to 11 billion yen (USD 93.7 million) - a drop of 55 per cent.

According to Bloomberg, the company admitted that it "failed to adjust its games software business to meet consumer needs." The sales forecast has also been slashed to 450 billion yen, down from 470 billion yen previously, and Namco Bandai will take a 6 billion yen one-time loss following a drop in the value of its software inventory.

Namco Bandai also announced plans to purchase remaining shares in amusement machine manufacturer Banpresto for 18.3 billion yen. Each share will cost the company 3450 yen - more than 25 per cent above the going rate on the Tokyo Stock Exchange.

Namco Bandai was formed last year in a deal worth 175.3 billion yen. As a result of the merger, NB became the third largest games company in Japan, ranking behind Nintendo and Sega Sammy Holdings.

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Ellie Gibson: Ellie spent nearly a decade working at Eurogamer, specialising in hard-hitting executive interviews and nob jokes. These days she does a comedy show and podcast. She pops back now and again to write the odd article and steal our biscuits.