Bandai Namco cuts workforce after cancelling games due to diminishing demand: Report

livemint.com:

Bandai Namco Studios Inc., an affiliate of the company, has relocated approximately 200 out of its 1,300 employees to so-called “expulsion rooms," or oidashi beya, added the report.As per the wire, these rooms, a tactic sometimes used by Japanese corporations to sidestep the country’s stringent labour laws, provide employees with no work-related tasks, effectively putting them under pressure to leave. Nearly 100 employees have resigned since the implementation of this practice, with more departures expected in the coming months.Despite these claims, Bandai Namco denies using such methods to force staff out.

A company representative stated, "Our decisions to discontinue games are based on comprehensive assessments. While some employees may experience delays before being assigned to new projects, we do not have an organisation like an 'expulsion room' to pressure people into leaving voluntarily."Reportedly, the gaming giant has been under mounting pressure to reduce costs amid a post-pandemic decline in user engagement with video games.

Smartphone and online games, in particular, have suffered from waning interest. This downturn prompted Bandai Namco to overhaul its game lineup, resulting in a ¥21 billion ($141 million) writedown over the first three quarters of the fiscal year.The company recently shut down its smartphone game Tales of the Rays and plans to discontinue its major online game Blue Protocol in January.