Despite Elden Ring Success, Bandai Namco Reported Massive Loss in Profits as it Cancels 5 Games Ahead of Shadow of the Erdtree Release

While 'Elden Ring' might have been a major success for Bandai Namco, the studio is reportedly now reporting losses.

Despite Elden Ring Success, Bandai Namco Reported Massive Loss in Profits as it Cancels 5 Games Ahead of Shadow of the Erdtree Release

SUMMARY

  • 'Elden Ring' is a major commercial success for FromSoftware and Bandai Namco alike.
  • Despite major success of the game, Bandai Namco is still reportedly facing major losses in recent quarters.
  • After a deep analysis of their developing department, the publishing studio has now cancelled 5 coming titles.
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FromSoftware’s Elden Ring has been a major success for not only its developing studio but also for Bandai Namco, which is responsible for the publishing of the title around the globe outside of Japan.

However, what’s surprising is the fact that the publishing studio, despite the commercial success of the game, is presently struggling to make profits in recent times. In the recent financial statement released on Bandai Namco’s website, it is revealed how the studio had to face a massive drop in profits in the latest quarter.

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Bandai Namco Studios
Bandai Namco Studios

Why Bandai Namco Is Facing Losses Despite Elden Ring’s Major Success

It is no doubt that Elden Ring is one of the best-selling games for FromSoftware as well as Bandai Namco. However, where the studio seems to have lacked consistency, meaning they were not able to follow up with the same results in the coming quarter.

To put it simply, considering how millions of copies of Elden Ring were sold around the globe upon its release, the game was an unexpected success, and it blew up more than expected, reporting abnormal profits. This essentially meant the publishing studio would be facing a major loss in the coming quarters when compared to the time the game was released.

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Elden Ring
Elden Ring

The statement reveals how there has been a drop of a massive 96% in profits when compared year-to-year, giving credit to our speculation above. While everybody saw it coming, the executives of the studio have revealed that they are still going to be working on streamlining their focus on production in the future, disclosing how 5 different titles have been disposed of and canceled by the studio.

Steps Taken By Bandai Namco To Streamline Their Production Of Upcoming Games

The aforementioned executives also revealed how an analysis of their department responsible for developing games has led them to dispose of at least 5 titles in production. This will allow the studio to dedicate way more time to their main titles, such as the upcoming Dragon Ball game.

The studio also revealed how they are preparing a great amount of downloadable content for Elden Ring, bringing immense joy to fans. This particular news served as the cherry on top as players around the globe are already sitting in anticipation waiting for the much-awaited Shadow of the Erdtree DLC.

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Key Art | Shadow of the Erdtree DLC
Key Art | Shadow of the Erdtree DLC

Whatever the financial reports might be, Bandai Namco seems to be far away from any financial problems right now. The company is still reporting a decent amount of sales and returns on their other publishing, such as their Armored Core series and on their recent launch of Tekken 8.

Aaditya Chugh

Written by Aaditya Chugh

Articles Published: 366

Aaditya Chugh is a Gaming Content Writer at FandomWire. With a passion for everything gaming, he's the one you turn to for the latest insights and reviews straight from the industry. Whether he's diving into timeless classics like the first ever Doom or staying up-to-date with the newest releases like Helldivers 2 and Stellar Blade, he provides whatever you might need to stay in the loop.