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Bandai Namco Holdings Inc. Lindsay Semler, Ian Beckman Namco Bandai Holdings Inc. On September 29th 2005, Bandai Company Inc., the toy giant, and Namco Limited, the game publisher announced they would join operations to form Namco Bandai Holdings Inc.

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Bandai Namco Holdings Inc.

Lindsay Semler, Ian Beckman


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Namco Bandai Holdings Inc.

  • On September 29th 2005, Bandai Company Inc., the toy giant, and Namco Limited, the game publisher announced they would join operations to form Namco Bandai Holdings Inc.

  • Merger made the company the second largest Japanese game and toy company behind Sega

  • Company sectors include: toys, visual software, video games software, amusement facilities, arcade game machines, mobile games, apparel, and network gaming


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Namco Cybertainment Inc.

  • Nakamura Manufacturing Ltd. in 1955

    • Masaya Nakamura

    • Originally produced children’s rides

  • 1970’s

    • Acquired Japanese division of Atari

    • Namco Arcade

      • Gee Bee, Bomb Bee and Cutie Q , designed by Toru Iwatani

  • 1980’s

    • Pole Position and Final Lap, first multi-player cabinet

    • Registered on the Tokyo Stock Exchange

    • Release first mega hit, Pac-Man

  • 1990’s

    • Namco Cybertainment, Incorporated

      • Arcadea,Consoles

      • Tekken and Soul Series


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Bandai Company Inc.

  • 1950’s

    • Founded as a major producer of plastic model kits

  • 1960’s

    • Expanded market to include export sales of racing

      car sets

  • 1970’s

    • Bandai America Inc. was established as a local US Sales operation

  • 1980’s

    • Expanded to video planning and production producing its first animated feature “Ag Daros”

    • Began distribution of several video games for Nintendo, such as World Class Track Meet

    • Signed a contract in 1987 with Walt Disney for video products

  • 1990’s

    • Power Rangers made debut in 1993 gaining popularity in the US


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Bandai Company Inc.

  • 2000’s

    • Tamagotchi launched in 2005 and won Toy of the Year in the UK

    • Manufacturer of toy licenses of the most popular brands in the US

      • Power Rangers

      • Pokemon

      • Dragon BallZ

      • Digimon

      • Tamagotchi

      • Girlz Connect

    • Manufacturer of toy licenses of the most popular brands in the US

      • Walt Disney

      • Cartoon Network


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Namco Bandai Holdings Inc.

  • September 29th 2005 Bandai and Namco announced joining operations to form Namco Bandai Holdings Inc.

  • Product Categories:

    • Toys

    • Visual software and Video game software

    • Amusement Facilities

    • Arcade game machines

    • Mobile games

    • Apparel

    • Network Content

  • Business Divisions of Namco Bandai Holdings (USA) Inc.:

    • Bandai America Inc. (Toys)

    • Bandai Entertainment Inc. (Visual software)

    • Namco Bandai Games America Inc (Video games software)

    • Namco Cybertainment Inc. (Amusement facilities)

    • Namco Amercia Inc. (Arcade Machines)

    • Namco Networks America Inc. (Mobile Games)


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Namco Bandai Merger

  • Merger motivation: shrinking consumer base and higher development costs

  • Bandai Strengths

    • Profitable toy maker

    • Ability to create appealing and profitable characters in US markets

  • Bandai Weakness

    • Suffered in game development compared to other companies in the market

  • Namco Strengths

    • Game development capabilities

    • Hold in video game market

  • Namco Weakness

    • Lack of global market


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Expanding on Merger

  • Revival of past hit arcade games merging toys and Namcos game content

    • Dragon Buster, GAPLUS, Xevious

  • Production of figure toys based on Namco game content

    • Soul Caliber, Tekken

  • Installation of Deka-Tamagotchi at Namco facilities

    • Tamagotchi café’s

  • Development of Amusement machines Mobile Suit Gundam at Namco locations combining Bandai’s characters with Namco’s networking



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Since Merger 2006

  • Pre-Merger Sales

    • Overseas: despite some video game hit titles, market down turn

    • Coin operated game machines increased with titles such as Mario Kart

    • Mobile Gundam series overseas returns increased sales

  • Future Business strategy:

    • Launch Tamagotchi Plus

    • Use long-established popular characters with new content overseas

    • Future Toys:

      • Ben10 (US boys), Naruto (US cards), Pocoyo (infant toys)

    • Future Video Games:

      • Dragon BallsZ Sparking!, Neo, Tekken, Dark Resurrection, RAIN, Tamagotchi 2


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2007 and 2008

  • Expanded US contents overseas of Power Rangers, Tamagotchi, and Ben10

  • Focused on Coin-Op machines by introducing mass-medal machines and creating new entertainments

  • Video game software development focused on blending strengths of Namco and Bandai and focused on organization between the different departments.

  • Established character toys remained firm, but lack of new hit products.

  • Video games overseas and arcade machines in Japan performed well.

  • Package software sales struggled in transition of hardware to next-generation

  • Ban10 popularity expands in US and Europe

  • Gundam series gains popularity in Asia


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Namco Bandai Inc. Market Holding

  • Main sectors: Toys and Hobby and Game Content

  • 9th strongest video game publisher in 2008

  • Total revenue of $1,468 million dollars

  • Net sales were 460,473 million yen

    • Japan - 346,736 million yen

    • Americas Region - 52,623 million yen

    • Power Ranger, Dragon Ball, Soul Caliber, Tekken



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Future Plans

  • Toys

    • Strength products of established characters

      • Power Rangers, Masked Rider, Ultraman Series

    • Expand target customer to include adults

    • New character toys of Dragon BallZ as it’s popularity is growing overseas

  • Video game software

    • Use multi-platform strategy geared to user preferences globally

    • Improve profitability by narrowing down number of titles

    • Current Main Titles: Soul Calibur IV, Dragon BallZ, Family Trainer (WII)


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Future Game Lineup

  • Active Life Outdoor Challenge

  • AFRO SAMURAI

  • Digimon World Championship®

  • Eternal Sonata™

  • Namco Museum™ Virtual Arcade

  • NARUTO™: Ultimate Ninja Heroes® 2: The Phantom Fortress

  • NARUTO™: Ultimate Ninja® 3

  • NARUTO™: Ultimate Ninja® Storm

  • National Geographic™ Panda

  • SOULCALIBUR® (Xbox LIVE® Arcade)

  • SOULCALIBUR® IV

  • Tales of Vesperia

  • Tamagotchi® Connection®: Corner Shop™ 3

  • Warhammer® Battle March™

  • We Cheer™

  • We Ski™


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References

  • [1] TM & BVS Entertainment, Inc. “Bandai’s Creation of Inspiration Operates on a Global Scale”. http://www.bandai.co.jp/e/corporate/global.html

  • [2] Nilsumi, H and Feldman, C. Game Spot. “Bandai, Namco to Merge”. May 2, 2005. http://www.gamespot.com/news/6123385.html

  • [3] 2006- 2008: Annual Reports. Namco Bandai Holdings Inc,. http://www.bandainamco.co.jp/en/ir/annual/index.html

  • [4] Schilling, Mark. "Namco Bandai buys Infogrames stake." Variety. 10 Sept. 2008. <http://www.variety.com/article/vr1117992022.html?categoryid=1079&cs=1>.

  • [5] Matthews, Matt. "Edge's Top 20 Publishers 2008." Edge. 28 July 2008. <http://www.edge-online.com/features/edges-top-20-publishers-2008>.

  • [6] Namco Bandai Holdings Inc. "Financial Highlights and Supplemental Data for the Fiscal Year Ended March 2008." Press release. 8 May 2008. <http://www.bandainamco.co.jp/en/releases/images/3/44275.pdf>.

  • [7] Ryan. "SD-Tekken reports Tekken 6 will not receive a US release in arcades." Arcade Renaissance. 13 Mar. 2008. <http://www.arcade-renaissance.com/2008/03/sd-tekken-reports-tekken-6-will-not.html>.

  • [8] Namco Bandai Holdings Inc. "New Releases Games." Press release. <http://www.namcobandaigames.com/games/new_releases>.


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