Interviews

It has been two and a half years since you became president.

Kawasaki: I became president during the challenging circumstances resulting from the COVID-19 crisis. In this setting, we continued to implement initiatives that leveraged our capabilities, and as the COVID-19 crisis moved toward a resolution, we fulfilled our role in the provision of leisure activities that can be enjoyed nearby, without traveling long distances for entertainment. In this way, we were able to make progress toward a recovery in results. Over the past two and a half years, we have implemented business reorganization initiatives and changed a variety of systems. Bandai Namco Amusement Inc. was created in 2018 through the integration of Namco Limited (facility operation business company) and the amusement machine development and sales division of Bandai Namco Entertainment Inc. At the time of the integration, I was working at a different Group company, and when I became president in 2021, I felt that we were not fully demonstrating our strengths as both a manufacturer and an operator. In addition, I thought that our position within the Group’s IP axis strategy was not yet settled. Accordingly, we reviewed the profitability and added value of each business and formulated the current Mid-term Plan, which looks ten years ahead. On that basis, we are now implementing our main strategies

Would you discuss progress with results and future challenges

Kawasaki: We restructured our internal organization and created a departmental system with a focus on earnings. For example, there are six departments, including facility operation and machine arrangement. As a result, the preferences of customers and fans, and the value that we need to provide, is communicated directly to those who develop plans.
Looking at machine development, sales of Mobile Suit Gundam: Extreme Vs. 2 Over Boost are favorable and are contributing to our results. On the other hand, we still face certain issues. We need to further enhance our planning and technical capabilities, and the most important thing right now is to be prepared to take on new challenges. I think that encouraging the development spirit among creators will lead to the formation of outstanding plans.

What do you think is Bandai Namco’s competitive edge?

Kawasaki: I think Bandai Namco’s competitive edge is the ability of Group companies to work together and rapidly roll out products and services through a variety of content outlets, centered on the IP axis strategy. As the Group creates, nurtures, and rolls out IP, the Amusement Unit is the only point of direct customer contact. We are constantly thinking about the role that we should fulfill. Bandai Namco Amusement Inc. is opening official shops that handle the Group’s high-quality products, such as prizes, character lottery products, capsule toys, and cards. At the same time, with Bandai Namco Cross Stores, we can contribute to increases in the Group’s value by providing real venues that facilitate connections with customers.

What is the role of the Amusement Unit within the Group?

Kawasaki: I think that our role is to foster real contact with customers, offer venues for that contact, connect with fans, and implement operations that leverage our direct contact with customers. As product development and logistics are increasingly digitalized, the importance of real initiatives increases. Our distinctive resources and know-how include venues that share information, content that satisfies the five senses, and responsible customer service. Going forward, we will leverage these resources and know-how and advance our business operations. In addition, without limiting ourselves to the sharing of resources within the Group, we will strive to provide a level of value that will make rights holders and other partners glad that they do business with Bandai Namco Amusement Inc.

Would you discuss fan marketing?

Kawasaki: We are conducting data analysis for the purpose of providing services to IP fans. From amusement facilities, we are able to obtain unique qualitative data from real points of customer contact. In Groupwide marketing, we would like to step up the extent to which we leverage factors such as the enthusiasm of fans, which cannot be quantified, and data for niche IP that will require some time before a wide roll-out. In addition, the creation of amusement facility fans is another element that is important for us as a company that conducts facility management. We are constantly considering ways to increase the quality of customer contact service, such as using fan evaluations of facilities in the evaluation standards for staff members.

Please discuss the labor shortage and rising labor costs in the service industry.

Kawasaki: Working styles and employment circumstances are changing significantly, and measures to address these trends are necessary. Going forward we will need to further enhance the workplace environment so that employees on the front lines can work energetically. We want to be a company in which employees can formulate not only career plans but also life plans. To that end, we have significantly changed the frameworks of a number of systems. For example, we have revised the salary system. We have also introduced the Home Ground System for full-time employees working at amusement facilities. This system enables these employees to work at a facility in an area that they have selected, thereby facilitating working styles aligned with the life plans of employees and their families. In addition, the Alumni System makes it easier to rehire former full-time employees. Moving forward, we will continue to implement reforms.

Fulfilling our mission of providing value for fans and customers through real venues

Would you discuss the status and future outlook of overseas initiatives?

Kawasaki: In August, the Bandai Namco Cross Store Camden, London, was opened where it has been well received. We think it has been a great success due to collaboration between Bandai Namco Amusement Europe Ltd., a local company, and the Japan-based overseas business divisions. Going forward, we will open Bandai Namco Cross Stores around the world. In the U.K., we are seeing good results at our official shops for capsule toys, and local managers and staff are working together with high levels of motivation. In inland China, in September we started operation of an online machine cabinet for Taiko no Tatsujin, and this is generating favorable results. We will continue working with local partner companies to conduct active sales of machines aligned with local needs. In addition, I believe that India is also a market with high potential, and we will continue to focus on India in the future.

Please discuss future focus facilities and titles.

Kawasaki: In November, we opened new amusement facilities at AMU PLAZA NAGASAKI and the Tachikawa Takashimaya shopping center. In addition, we opened Bandai Namco Cross Store Kyoto. Also, in December we plan to open VS PARK Aeon Mall Kyoto. Looking at focus amusement machine titles, in February 2024 we plan to start operation of WANGAN MIDNIGHT MAXIMUM TUNE 6RR PLUS, an arcade game.

What are your thoughts about Bandai Namco’s Purpose?

Kawasaki: Fun for All into the Future is a phrase that is extremely well suited to the Bandai Namco Group. The Amusement Unit is always thinking about contributing to the Group as well as recording earnings. Our mission is to provide value for fans and customers through real venues, and we will ensure that our efforts are aligned with the Purpose.

What are your policies toward work?

Kawasaki: Since I was young, I have written “Never Say Never” on the first page of my notebooks. I think of this phrase in the sense of not complaining or whining. Moreover, as president, I place importance on fairness. In addition, Yasuo Miyakawa, the former president of Bandai Namco Entertainment Inc., taught me a saying that has been attributed to Antoine de Saint-Exupéry. “If you want to build a ship, you do not need to assemble the people in the forest, assign the work, and give instructions. Instead, all you need to do is point out the existence of the vast and boundless sea.” I place importance on this saying as an indicator of how leaders should act. Rather than micro-managing the front lines, I would like to communicate to everyone what type of world is waiting for us in the future.

Do you have a message for shareholders and investors?

Kawasaki: The Amusement Unit provides real venues that foster connections among fans, local communities, employees, and the Group. Going forward, we will continue to deliver real entertainment value to people around the world by “rolling out venues for sharing inspiration through experiences.” Please look forward to the Amusement Unit’s continued progress in the years ahead.

This article is an extract from the Newsletter, Bandai Namco News, which was published in December 2023 and partially re-edited.