Bandai Namco Faces Challenges: Project Pauses and ‘Expulsion Rooms’ Explained

Bandai Namco, the renowned game studio behind popular franchises like Dragon Ball, Tekken, and Dark Souls, is currently navigating some organizational challenges.

A recent Bloomberg report revealed that the studio has been restructuring internally and pausing or even canceling certain projects due to what the report describes as “lackluster demand” for some titles.

What’s Happening Behind Bandai Namco’s Doors?

The report claims that, in an effort to cut back on staff without directly firing employees, Bandai Namco has moved some of its team members to what is known as “expulsion rooms,” or what Japanese called it “oidashi beya,” a strategy used by some Japanese companies to encourage voluntary resignations. Japan’s strict labor-protection laws make it difficult to dismiss employees directly, so companies sometimes rely on such methods to reduce staff.

According to Bloomberg, of Bandai Namco Studios Inc.’s approximately 1,300 employees, around 200 were transferred to these rooms, and close to 100 employees have already resigned since April of this year.

However, Bandai Namco quickly countered these claims, denying the existence of these rooms within the company. A representative of the studio emphasized that any decision to discontinue games is the result of careful consideration and strategic assessments. The spokesperson explained that employees may sometimes experience a waiting period before being assigned a new project as new initiatives develop, but clarified, “There is no organization like an ‘oidashi beya’ at Bandai Namco Studios designed to pressure people to leave voluntarily.”

Which Projects Are Affected by the Recent Changes?

The restructuring has impacted several projects, leading to some cancellations and pauses. Here is what we know about the projects affected:

• Blue Protocol: The anime MMO’s worldwide release has been canceled, with Japanese servers shutting down in January 2025
• Tales of the Rays: The mobile title has been canceled
• One Piece and Naruto Projects: Development has been paused on several titles featuring these popular franchises
• Unspecified Nintendo Project: Development has ceased on a commissioned Nintendo game

Amid these challenges, Bandai Namco is also celebrating a major win with “Dragon Ball: Sparking Zero“, the latest installment in the Budokai Tenkaichi series after a 15-year hiatus. The game’s launch on October 10 was a massive success, reaching over three million day-one sales globally and hitting a concurrent player count of 122,554 on Steam.

Tekken 8, released in January 2024, also made a good impact by selling two million copies in its first month. However, the game embodied itself into a controversy because the newly released DLC did not include the “Genmaji Temple” stage in the Deluxe Bundle. To appease users, the developer is offering freebies valued at $5 for a limited timeframe.

Looking ahead, fans have reason to be hopeful. Leaks hint at exciting new anime-inspired game Death Note: Killer Within in development. Furthermore, the developer revealed the trailer of Bleach: Rebirth of Souls, a 3D arena fighting game, earlier this week. Although these titles don’t yet have official release dates, gamers are hopeful that Bandai Namco’s internal restructuring won’t delay these anticipated releases.

Bandai Namco also teamed up with the new developer studio “Rebel Wolves” (formed by CD Projekt Red Konrad alum Tomaszkiewicz) to publish the studio’s debut fantasy RPG, “Dawnwalker.”