Bandai Namco reported record first-quarter results overall.
However, its Digital segment, which includes gaming, experienced significant declines due to fewer title releases compared to the same period last year.
The numbers
For the first three months of the fiscal year ending March 31, 2026:
- Net sales: ¥328.4 billion ($2 billion), up 9.3%
- Operating profit: ¥69.2 billion ($436.7 million), up 33.3%
- Ordinary profit: ¥74.4 billion ($469.5 million), up 36.3%
The highlights
Strong performance in Bandai Namco’s Toys and Hobby segment drove overall sales, with sales and profit increasing by 45.9% and 25.4%, respectively. The company also received a refund related to US tariffs.
Amusement facilities contributed significantly, with net sales for existing locations in Japan rising 7.6% year-on-year.
Bandai Namco’s Digital segment, which includes games, experienced declines in both sales and profit. Sales dropped 15.6% to ¥90.9 billion ($573 million), while profit fell 30.9% to ¥15 billion ($94.5 million).
The Home Console Game segment sold 6.9 million units this quarter, with two new titles released.
In the previous quarter, 10.8 million units and 15 new titles, including a major release, were recorded. These figures exclude platform and region-localised versions.
Core game app titles “remained popular” during the first quarter. The company stated it is “strengthening development capabilities with a view toward building an optimised title portfolio” and is “further reinforcing the network content earnings base.”
New titles set to launch this year include Ace Combat 8: Wings of Theve on October 2, 2026, Dragon Ball Xenoverse 3 in 2027, and Gundam Rogue Orbit in 2027.
Bandai Namco has revised its half-year forecast for the Digital Contents segment. Sales are now expected to increase by 10% from the previous forecast to ¥200 billion ($1.2 billion), representing a 31.5% decrease year-on-year.
Operating profit is projected at ¥26.5 billion ($167 million), up 11.5% from the previous forecast but down 10.8% compared to last year.
The company has not revised its full-year results but plans to reassess based on “changes in market environment and fan needs” as well as “trends of any major home console titles planned in the third quarter and thereafter, and trends during key selling seasons, among other factors.”
