Working to strengthen game development structure with the aim of medium- to long-term growth

In recent years, game development has become considerably more difficult, especially for major titles, due to factors such as adopting technologies to respond to the increasing sophistication of game development itself, transitioning to multi-platform development, providing language and other forms of worldwide support, and addressing diversifying user needs. These factors have led to longer development periods and higher development costs, and there is now a growing need to address these issues with a greater sense of speed.
Under these circumstances, we believe it is imperative to build a structure that can keep development in line with plans through the appropriate allocation of resources and stringent schedule management and that can extend the lifecycle of existing titles through such means as repeat sales and downloadable content. In FY2024.3, Bandai Namco Entertainment Inc. (BNE) proceeded with structural preparations for building a title portfolio that strikes a proper balance between investment costs and development progression. As part of these efforts, we have been strengthening our evaluation system for titles under development. In addition, we have set up the Portfolio Committee as an organization for assessing new development titles at an early stage by leveraging strengths that are uniquely Bandai Namco. The president & CEO of BNE serves as chair of this committee and makes determinations on the strategic reshuffling of our title portfolio from broad perspectives that encompasses our entire business.
However, a certain amount of time is required before we can reap the benefits of this new production structure. As recent game development requires around three to five years, we will steadily push forward with efforts under this new structure aimed at achieving results over the medium to long term.
Moreover, amid longer game development periods, there is a need to have our young game creators accumulate development experience. Since 2019, Bandai Namco Studios Inc. (BNS) has been implementing the GEMini Project, a training course enabling new employees to experience the flow of the game development process over a period of three to four months. In 2021, we launched the game label GYAAR Studio as a venue for young creators to utilize more open concepts in development. This label has in place a cycle that helps creators with around one year of development experience release a game title and gain a feel for listening to fan feedback.
Additionally, I believe that one of my most important missions is to share the know-how cultivated at Group game studios, centered on BNS, both inside and outside the Group. By sharing this know-how with other Group companies and business partners such as external development companies, we will be able to gain various insight from both internal and external sources. This in turn will be used to further evolve our development studios. These kinds of efforts aimed at resolving issues on a Groupwide basis not only enhance game quality, but they also lead to greater development speed through increased efficiency.
Lastly, what is most important is to remain committed to creating games only Bandai Namco can develop. By fully leveraging our strengths in creating games that draw on the appeal of our IPs, we will continue to pursue the development of games our fans desire moving forward.