Namco/Bandai Cuts Forecast, Buys Out Banpresto
According to a Bloomberg News report, major video game and toy creator Namco Bandai Holdings Inc. has cut its profit forecast by 55 percent to 11 billion yen ($93.7 million) for the fiscal year ending March 31, compared with the previous forecast for 24.4 billion yen ($208 million), particularly citing slower Nintendo DS game sales than expected.
Although some Namco Bandai titles such as the new Tamagotchi DS title have sold excellently in Japan, it appears that other games released by the firm, which recently debuted a new Pac-Man-related title for the DS, have performed below expectations.
However, sales for Namco Bandai for the entire year will only be slightly lower than expected, around 450 billion yen in the period, compared with a previous estimate of 470 billion yen, showing that the combined firm is not in a particularly disadvantageous position.
In addition, the company announced that it would buy the remaining shares in the heavily Bandai-associated arcade and console game creator Banpresto, which is particularly well known for its Super Robot Wars titles in Japan. Namco Bandai will spend 18.3 billion yen ($156 million) to buy the remaining stock in Banpresto, at more than 25 percent over the current stock value.