Bandai Namco Holdings Inc. has announced its results for FY2025.3 and its future outlook. In this issue of the newsletter, President and CEO Yuji Asako discusses the results, the trends in each business, and other related topics.
The results For FY2025.3 have been announced.
In FY2025.3, net sales were ¥1,241.5 billion, operating profit was ¥180.2 billion, ordinary profit was ¥186.4 billion, and profit attributable to owners of parent was ¥129.3 billion. On a Groupwide basis, we achieved all of our business targets, with both sales and profits increasing year on year. In this way, we concluded the final year of the Mid-term Plan on an extremely high note, achieving a record-high performance.
Over the three-year period of the previous Mid-term Plan (FY2023.3– FY2025.3), average operating profit came to ¥129.1 billion, a significant increase compared with the average operating profit of ¥82.4 billion recorded during the previous previous Mid-term Plan (FY2019.3– FY2021.3). Under the current Mid-term Plan (FY2026.3–FY2028.3), we aim to build a robust, resilient earnings base that is not easily impacted by changes in the operating environment or the breakthrough success of certain products.
In terms of each business, the Digital Business saw a strong performance from home console games, with solid sales of the main title ELDEN RING and its large-scale DLC ELDEN RING SHADOW OF THE ERDTREE. The new title DRAGON BALL Sparking! ZERO was also a tremendous success worldwide. The Toys and Hobby Business achieved significant growth due in part to the continued strong performance of highly profitable products and services, such as trading card games (TCG), Gundam model kits, and other products for the mature fan base. In addition, the IP Production Business delivered strong results, supported by the success of theatrical releases such as Mobile Suit Gundam SEED FREEDOM. The Amusement Business also performed well, driven by the strong performance of Bandai Namco Cross Stores and other facilities, a unique facility concept distinctive to Bandai Namco.
Please tell us about the results for shareholder returns in FY2025.3.
In FY2025.3, we issued an annual dividend of ¥71 per share, comprising a base dividend and a performance-based dividend, in line with our new basic policy on shareholder returns starting in FY2026.3. This dividend, together with the acquisition of treasury shares in the fourth quarter, made for a total return ratio of 62.7%. We will reassess shareholder returns for FY2026.3 based on our new policy.
Would you discuss the results forecast for FY2026.3?
In FY2026.3, we forecast net sales of ¥1,200.0 billion and operating profit of ¥145.0 billion.
With all of our Mid-term Plans, we aim to achieve a robust, resilient, and stable earnings base. In the first year of the current Mid-term Plan, we aim for operating profit of ¥145.0 billion, a 10% increase in operating profit over the average during the period of the previous Mid-term Plan. The revision of U.S. tariffs is expected to lead to cost increases primarily in the Toys and Hobby Business. As we cannot logically predict the amount of cost increases at the moment due to a variety of uncertain factors, we have not incorporated them into our results forecast. We intend to reflect specific amounts, if necessary, as we observe various trends moving forward.
Market Trends in Each Business and
Growth Strategies Aimed at New Rollouts
Could you comment on the trends for each business in FY2026.3?
What is the situation in the Toys and Hobby Business?
In FY2026.3, the Toys and Hobby Business will continue to aim for a record-high performance through a combination of IP*, product category, and regional initiatives. In addition to large-scale TCG events and tournaments in countries and regions around the world and proactive promotions following the 45th anniversary of Gundam model kits, we will execute capital investments to expand production capacity to meet growing global demand.
The TCG market is large in scale globally and highly compatible with digital games. In this market, we will aim to establish mainstay products, launch new products on a regular basis, and bolster sales of existing products. At the same time, we will retain existing fans and attract new ones through ongoing large-scale tournaments and storefront events and hands-on events. For the ONE PIECE Card Game, which will soon be celebrating its third anniversary, we began sales of a French version. In July, we intend to roll out the GUNDAM CARD GAME simultaneously in three different languages across 54 countries and regions. This TCG was made with a strong awareness of overseas players and, as such, is garnering a high level of interest from fans and retailers. We will also strive to enhance the sense of immersion for GUNDAM CARD GAME through collaboration with GUNDAM ASSEMBLE, a game that utilizes miniature Gundam model kits.
For the Mobile Suit Gundam series, which is celebrating its 45th anniversary, we will roll out products for Mobile Suit Gundam GQuuuuuuX. At the same time, we will hold events celebrating the anniversary and implement promotions that highlight the appeal of the Gundam brand and the fun of building Gundam model kits. Overseas, we carried out an “ad takeover” at Times Square in New York City, making a strong appeal for the series and its products to fans in North America. Furthermore, we are currently proceeding with preparations to commence the full-scale operations of new Gundam model kit factory, so please look forward in anticipation. In addition to these initiatives, we are promoting rollouts of not only Japanese IPs but also IPs originating overseas, in line with our global business expansion.
* IP: Characters and other intellectual property
A fan-filled scene from our Times Square ad
takeover in New York City on March 29, 2025
Attracting new fans through Gundam model kit of HG 1/144 GQuuuuuuX
from the Mobile Suit Gundam GQuuuuuuX
©創通・サンライズ
What is the situation in the Digital Business?
In FY2026.3, we expect that differences in title lineups compared with FY2025.3—in which we enjoyed major success with numerous titles—will have a significant impact. On the other hand, in addition to mainstay app titles and THE IDOLM@STER Gakuen, which performed well in FY2025.3, we have high expectations for new titles.
With regard to global home console game titles in FY2026.3, we released ELDEN RING NIGHTREIGN, an online multiplayer survival action game, together with FromSoftware, Inc., and plan on launching LITTLE NIGHTMARES 3 together with a European developer. Both of these titles are positioned for ongoing rollouts, with a particular focus on overseas markets. Moreover, capitalizing on the launch of a new platform, we will release such titles as ELDEN RING and Tamagotchi for the Nintendo Switch 2. We will also grow sales of repeat titles through the continued provision of downloadable content and ongoing fan communication.
Turning to network content, SD Gundam G Generation Eternal, which launched in April, has gotten off to an extremely strong start. Looking ahead, we will promote events and other initiatives in conjunction with the rollout of the Gundam series and will also strive to establish Gundam titles as a pillar of the Digital Business. In addition, we will launch DRAGON BALL PROJECT:Multi in 2025.
Furthermore, in the Digital Business, original IP titles PAC-MAN, THE IDOLM@STER, and IDOLiSH7 will be celebrating their 45th, 20th, and 10th anniversaries, respectively. In celebration of these anniversaries, we will strive to launch products on a Groupwide basis, proactively pursue collaborations with other companies, and engage in other efforts with the aim of expanding the value of these IPs.
Home console game
ELDEN RING NIGHTREIGN,
launched on May 30, 2025
©Bandai Namco Entertainment Inc.©2025 FromSoftware, Inc.
Network content SD Gundam G Generation Eternal
enjoyed a well-received launch
©創通・サンライズ
What is the situation in the Visual and Music Business*?
For the Visual and Music Business, in FY2026.3, we will continue to approach new fans and deliver various visual and music content in such ways as creating original IPs. We will also reinforce the licensing business and the live event-related business.
In the mainstay Mobile Suit Gundam series, the animated TV show Mobile Suit Gundam GQuuuuuuX—a collaborative work with khara, Inc.—has begun airing and is generating significant buzz. The theatrical release Mobile Suit Gundam GQuuuuuuX -Beginning- premiered in Japan in January ahead of the TV broadcast. The film was also screened in key overseas markets, including North America and China. With a view to the release of the live-action Gundam film, which is currently in production, we will work in collaboration with each business over the medium term to increase and deepen the level of recognition for Gundam worldwide. The GUNDAM NEXT FUTURE PAVILION at the Expo 2025 Osaka, Kansai, Japan, has been a huge success, providing an excellent opportunity for people of all ages and from various regions to experience the worldview of Gundam.
In addition to the Mobile Suit Gundam series, we will provide wide-ranging work lineups, including Kowloon Generic Romance, which will be expanded through anime and a live-action adaptations. Maebashi Witches is another Bandai Namco original visual and music work that is generating a high level of excitement. We will drive the popularity of Maebashi Witches through a combination of visual and music content, live events, and regional initiatives.
The primary mission of the Visual and Music Business is to produce high-quality works. Moving forward, we will also strengthen the licensing business in order to maximize the value of the IPs we produce. In April, we consolidated the licensing departments within the Visual and Music Business in an effort to rollout licensing activities in a manner that preserves the worldview of our IPs. With a pursuit of efficiency and speed, we will accelerate efforts to respond to change and business opportunities.
* Formerly the IP Production Business
Mobile Suit Gundam GQuuuuuuX, a collaborative work with khara, Inc.
©創通・サンライズ
Original work Maebashi Witches drawing attention
©PROJECT MBW
Kowloon Generic Romance, expanding through anime and live-action adaptations
© 眉月じゅん／集英社・「九龍ジェネリックロマンス」製作委員会© 眉月じゅん／集英社・映画「九龍ジェネリックロマンス」製作委員会
What are the circumstances in the Amusement Business?
The Amusement Business was reorganized and launched under a new structure in April 2025. Under this new structure, Bandai Namco Experience Inc., responsible for planning amusement facilities and machines; Bandai Namco Amusement Inc., which operates amusement facilities; and Bandai Namco Amusement Lab Inc., which develops amusement machines, will each strengthen their respective functions and cultivate human resources specializing in specific roles.
Amusement facilities serve as an important touch point between our fans and IPs and our products. In addition, they also help us gauge fan reactions and provide feedback to the Group. Furthermore, Bandai Namco Cross Stores, activity-based facilities, and Gashapon specialty stores have unique Bandai Namco concept and have drawn interest from shopping centers and numerous other facilities due to their potential to attract customers. Moving forward, we will continue to open differentiated facilities around the world.
With regard to arcade machines, we plan to launch new strategic products and a new version of the popular series Mobile Suit Gundam Extreme VS 2 INFINITE BOOST. The new product THE IDOLM@STER TOURS has enjoyed success since its launch in March 2025. THE IDOLM @STER series started with the arcade game. Accordingly, we aim to leverage the Amusement Business to steadily engage with fans of the series in an effort to create positive synergies for the series throughout the Group.
Rollout of Bandai Namco Cross Stores around the world
Top: Brooklyn, New York City, U.S.A
Bottom: Birmingham, U.K.
PAC-MAN™& ©Bandai Namco Entertainment Inc.©SOTSU•SUNRISE
THE IDOLM@STER TOURS enjoying success since launch in March 2025
©窪岡俊之 THE IDOLM@STER™&©Bandai Namco Entertainment Inc.©Bandai Namco Experience Inc.
Maximizing IP Value Through 360 Investments and
Promoting Global Strategies
One of the pillars of the Mid-term Plan is 360 investments. Has there been any concrete progress on this front?
We have announced the first project for our 360 investments, which are strategic investments aimed at forging 360° connections with our various stakeholders. This project entails a strategic partnership between Sony Group Corporation, Bandai Namco Holdings Inc., and Gaudiy Inc. in the fields of entertainment and technology. As part of this partnership, Bandai Namco Holdings has also invested in Gaudiy.
Through the partnership, we will promote various initiatives, including global business expansion and IP creation. From the perspective of global expansion, which we are aiming to accelerate under the Mid-term Plan, we will improve services for MyAnimeList, a Japanese anime and manga community site operated by a Gaudiy group company, where 99% of the users are from overseas. This will be done through collaboration between all three companies. Furthermore, under this partnership we will seek to connect more broadly and deeply with IP fans around the world, analyzing their preferences and level of interest and reflecting such insights in our business operations. Going forward, we will continue to make connections with external partners and creators with diverse capabilities to pursue collaboration through win-win relationships.
Do you have a closing message for the readers?
Thanks to your support, the Bandai Namco Group has continued to achieve steady results since adopting the IP axis strategy. Looking ahead, as we seek to expand globally over the medium to long term, it is imperative that we act now to build a stronger foundation to underpin our business growth. As president, my most important role is to build such a foundation and establish an environment under which our employees can work with peace of mind and where the frontline personnel can take on challenges in a free and open-minded manner. Recently, we announced that we have unified our retirement benefit system across all Group companies in Japan. This is one example of our efforts to promote more active and seamless exchanges of personnel across the Group. We will continue to pursue similar efforts to bolster infrastructure and unify regulations on a Groupwide basis.
Moving ahead, I will continue to do my best to build a Bandai Namco where employees can work with enthusiasm and build connections with fans across the world through our products and services—a Bandai Namco in which employees and their families can take pride. I would like to ask for the continued support of our shareholders as we pursue these endeavors in the future.
