Bandai Namco to Dissolve Its Online Gaming Division in Major Restructuring Move

Bandai Namco has announced plans to dissolve its online gaming subsidiary, Bandai Namco Online (BNO), through what the company calls an “absorption-type merger.” This strategic restructuring, scheduled for April 1, 2025, will see all of BNO’s operations integrated into the main Bandai Namco Entertainment division.

The dissolution of BNO, which has been operating since 2009, marks the end of an era for a studio that was specifically created to develop massively multiplayer online (MMO) games based on Bandai Namco’s popular properties. During its run, the studio was responsible for several notable titles, including Dragon Ball Z: X KeeperZ, Gundam Evolution, and the ambitious but ultimately ill-fated Blue Protocol project.

Speaking of Blue Protocol, the company previously made it clear that the Japanese servers of the game will cease operations in January 2025, and the planned Western release has been completely cancelled. This news is particularly significant as Blue Protocol was supposed to be published globally by Amazon Games, marking what would have been an important partnership between the two companies.

The decision to merge BNO into its parent company comes at a challenging time for the studio. Reports suggest that BNO had been facing financial difficulties, with development costs for projects like Blue Protocol reportedly exceeding initial projections. However, Bandai Namco assures fans that this restructuring is part of a broader strategy to adapt to the evolving gaming environment and strengthen their digital business management system.

For players currently enjoying BNO’s active games, there’s some reassuring news. Popular titles such as Idolish Seven, SD Gundam Operations, and Gundam Tryve will continue to operate under Bandai Namco Entertainment’s direct management.

While the future of BNO’s current staff remains uncertain, recent reports, though denied by the company, suggest that approximately 200 employees out of a workforce of 1,300 have been affected by project cancellations due to market conditions, with some allegedly being moved to “expulsion rooms” (oidashi beya).

Despite these challenges, Bandai Namco maintains an optimistic outlook for its future. The company has reaffirmed its commitment to delivering “high-quality content that can be played for a long time and deeply” and providing “diverse entertainment” that aims to exceed fan expectations.