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Bandai Namco Reports Decrease in Profit, Announces Plans to Invest in New IPs

Bandai Namco Entertainment has published its financial report for the nine-month period ended December 31, 2017, during which the company saw its operating profit dip by 12.1 percent to 40.8 billion yen. This is despite a year-over-year increase in sales by 5.2 percent to 483.2 billion yen.

The company’s Network Entertainment division, which includes video games, saw a 9.4 percent increase in sales to 285.3 billion yen. However, operating profit fell by 5.7 per cent to 33.8 billion yen.

While digital game sales increased by 24 percent, sales of boxed games fell by 11 percent. Dragon Ball Z was Bandai Namco’s biggest IP, with sales amounting to 65.4 billion yen. Mobile Suit Gundam and One Piece brought in 50.4 billion yen and 22.3 billion yen, respectively.

Bandai Namco has announced a three-year plan entitled CHANGE for the NEXT: Empower, Gain Momentum, and Accelerate Evolution, which focuses on the creation of new IPs and a “full-blown entry” into the Chinese market.

The company wrote:

Based on the results and challenges of the current Mid-term Plan, the new Mid-term Plan will aim to evolve the IP axis strategy further and achieve penetration and expansion in global markets. At the same time, we will also strengthen development in regions and businesses with high growth potential. Under the IP axis strategy, we will drive creation of new IP and regionally oriented strategies by unifying the efforts in each region under the ALL BANDAI NAMCO concept.

Bandai Namco recently published Arc System Works’ Dragon Ball FighterZ to critical acclaim.

[Source: Bandai Namco (1)(2)]