Bandai Namco Holdings Inc.

Business Details

A segment engaged in the planning, development, and distribution of Network Content (smartphone apps, etc.) and the planning, development, and sale of Console Games. The segment operates services domestically and internationally centered on powerful IPs such as "DRAGON BALL," "ONE PIECE," "THE IDOLM@STER," and "ELDEN RING." Japan and US bases collaborate to promote worldwide marketing, and continuous measures after release aim for long-term development. The segment forms one wing of the Bandai Namco Group's Entertainment Unit.

Recent Overview

Sales up 4.6% year-on-year, but segment profit down sharply by 17.3% due to differences in title lineup

In FY2026 (ending March 2026), the Digital Business posted sales of ¥476,592 million (up 4.6% year-on-year), while segment profit decreased significantly to ¥56,682 million (down 17.3% year-on-year). In Network Content, the new app "SD GUNDAM G GENERATION ETERNAL" performed well, strengthening the revenue base. In Console Games, titles such as "ELDEN RING NIGHTREIGN" became hits worldwide, but differences in the lineup of major titles compared to the same period of the previous year affected overall performance. Under the medium-term plan, the company has indicated a policy of building a well-balanced, optimal title portfolio.

Key Products

Growth Drivers

• Revenue contribution from worldwide hits of new Console Games titles such as "ELDEN RING NIGHTREIGN"
• Stable Network Content revenue base from flagship app titles such as "DRAGON BALL," "ONE PIECE," and "THE IDOLM@STER"
• Acquisition of new fan bases through new app titles (such as "SD GUNDAM G GENERATION ETERNAL")
• Strengthening of worldwide marketing structure and improved decision-making speed through collaboration between Japan and US bases
• Enhanced marketing precision and advanced demand forecasting utilizing the Data Universe concept

Risks

• High dependence on hit titles for performance, and risk of period-to-period performance fluctuation due to differences in title lineup (materialized in FY2026, ending March 2026)
• Risk of profitability deterioration due to lengthening game development periods and rising investment amounts
• Risk of delayed response to platform diversification and technological evolution
• Risk of failing to respond to diversifying customer needs and changing preferences
• Intensifying competition in the global market (competition with domestic and overseas game makers)

Business Details

Engaged in the planning, development, manufacturing, and sale of toys, capsule toys, cards, confectionery and food, apparel, daily necessities, plastic models, prizes, and stationery. The segment operates domestically and internationally with products targeting high-target (adult) demographics such as Gunpla, Collectors' Figures / Ichiban Kuji, as well as Trading Card Games and Gashapon. Against the backdrop of growing popularity of Japanese IP in the global market, the segment promotes expansion of categories, regions, and touchpoints, and accounts for approximately 50% of the Group's total sales, making it a core business.

Recent Overview

Achieved the largest profit growth among all segments, with sales up 12.9% and segment profit up 24.2%

In FY2026 (ending March 2026), the Toys & Hobby Business achieved significant growth in both sales and profit, with sales of ¥673,968 million (up 12.9% year-on-year) and segment profit of ¥126,938 million (up 24.2% year-on-year). Although the segment was partially affected by tariffs mainly during the interim period, high-target products such as Gunpla, Collectors' Figures / Ichiban Kuji, as well as TCG, Gashapon, and confectionery and food performed well through expansion of the product lineup, regions, and touchpoints. The new product "Tamagotchi Paradise" and stationery items such as sticker products also became hits. For the Gundam series, contributions came from the hit new film "Mobile Suit Gundam GQuuuuuuX," IP buzz generated by participation in Expo 2025 Osaka, Kansai, Japan, and cross-Group initiatives.

Key Products

Growth Drivers

• Accelerated overseas expansion against the backdrop of growing popularity of Japanese IP (Gundam, ONE PIECE, DRAGON BALL, etc.) in the global market
• Strengthened sales and marketing and expanded product lineup for high-target (adult) products (Gunpla, Collectors' Figures / Ichiban Kuji)
• Expansion of categories, target demographics, and regions for Trading Card Games, Gashapon, confectionery and food, etc.
• Expansion of touchpoints and strengthened connections with fans through real events, specialty stores (such as Gashapon Department Store), and IP Experience Official Shops
• Response to growing global demand through strengthened production systems and distribution
• Strengthening of the licensing business for IPs originating from the Toys & Hobby Business, such as Tamagotchi, and expansion of IP worldviews beyond the Group's business domains
• Deepening the establishment of play habits and connections with fans through collaboration with the Amusement Business via official shops, experience events, and events
• Strengthening of e-commerce in each region through promotion of collaborations with locally originated IP and local companies

Risks

• Risk of domestic market contraction due to progressing declining birthrate in Japan
• Risk of increased manufacturing costs due to rising raw material and fuel prices and exchange rate fluctuations
• Geopolitical risk associated with concentration in production regions (mainly Asia, including China) and impact of legal changes and tariffs related to import/export transactions (partially materialized mainly during the interim period of FY2026, ending March 2026)
• Impact on demand and costs due to increasingly uncertain global political and economic environment, including changes in US trade policy
• Risk of increasing complexity in quality control and labor environment management associated with expanding global operations
• Risk of delayed response to diversifying customer needs and changing preferences
• Risk of stricter environmental regulations related to plastic use (being addressed through the establishment of the Bandai Namco Group Plastic Environmental Policy)

Business Details

Engaged in the planning, production, and operation of video and music content such as animation, management and operation of copyrights and IP rights, discovery and development of artists, and the Live Entertainment business. The segment serves as the core of "IP creation" in the Group's IP-axis strategy, developing theatrical releases, video streaming, licensing business, and live events through major IPs such as Gundam and Love Live!. The company has established a video and music business subsidiary in North America and signed a co-investment agreement with Legendary Pictures for a live-action "Mobile Suit Gundam" film, strengthening global expansion.

Recent Overview

Increased sales and profit driven by new Gundam video works and Love Live!

In FY2026 (ending March 2026), the Visual & Music Business posted sales of ¥95,506 million (up 5.3% year-on-year) and segment profit of ¥12,181 million (up 3.4% year-on-year), achieving increased sales and profit. The new Gundam series video work "Mobile Suit Gundam GQuuuuuuX" acquired a new fan base in addition to existing fans, and box-office revenue, global video streaming, and licensing rollout contributed to performance. In the fourth quarter, "Mobile Suit Gundam Hathaway's Flash: Witch from Mercury" got off to a strong start. The Love Live! series also maintained popularity through interlinked development of theatrical works, music, and live events.

Key Products

Growth Drivers

• Growing popularity of Japanese IP in the global market (increased awareness through the spread of video streaming)
• Acquisition of new fan bases through continuous new video works in the Gundam series, and cross-Group initiatives linked with each business
• Enhanced IP value through interlinked development of theatrical works, music, and live events for the Love Live! series
• Accelerated global expansion through the establishment of a North American video and music business subsidiary and a co-investment agreement with Legendary Pictures for the live-action "Mobile Suit Gundam" film
• Stable licensing revenue through global video streaming of existing IPs (such as "One-Punch Man")
• Generation of IP buzz and increased awareness through participation in the "GUNDAM NEXT FUTURE PAVILION" at Expo 2025 Osaka, Kansai, Japan

Risks

• Volatility in performance depending on whether theatrical releases become hits (risk of downturn in year-on-year comparisons)
• Intensifying competition in IP creation (competition with domestic and overseas entertainment companies)
• Difficulty in developing and securing talent for work production, lengthening production periods, and rising investment amounts
• Impact on licensing revenue due to diversification of video streaming platforms and changes in negotiating power
• Exchange rate fluctuation risk and risk of regulatory and legal changes in each country associated with expanding overseas operations
• Box-office performance risk in large investment projects such as the live-action "Mobile Suit Gundam" film

Business Details

Engaged in the planning, development, production, sale, and after-sales service of amusement equipment, as well as the planning and operation of amusement facilities including theme parks and indoor playgrounds. The segment develops Group IP-linked facilities such as "Bandai Namco Cross Store" and "Gashapon Department Store," playing a strategic role in expanding awareness of Group products and services and strengthening touchpoints with fans. The business also handles the sale of Arcade Game Machines.

Recent Overview

Sales up 8.0% and profit significantly improved by 19.8%, driven by strong facility operations and arcade game sales contributions

For the full year of FY2026 (ending March 2026), the segment achieved sales of ¥152,747 million (up 8.0% year-on-year) and segment profit of ¥10,106 million (up 19.8% year-on-year). Domestic amusement facility same-store sales performed steadily at 107.0% year-on-year, with Group IP-linked facilities and activity facilities such as "Bandai Namco Cross Store" and "Gashapon Department Store" performing well. In arcade games, sales of "Mobile Suit Gundam Extreme VS. 2 Infinite Boost" contributed to performance.

Key Products

Growth Drivers

• Strong performance of IP-linked facilities and activity facilities such as "Bandai Namco Cross Store" and "Gashapon Department Store"
• Steady domestic amusement facility same-store sales at 107.0% year-on-year (full year of FY2026, ending March 2026)
• Strong sales of arcade games such as "Mobile Suit Gundam Extreme VS. 2 Infinite Boost"
• Expansion of touchpoints with fans through strengthened linkage with the Group's IP-axis strategy
• Expanded awareness of Group products and services through IP Experience Official Shops, experience events, and other events

Risks

• Securing talent and rising labor costs
• Pressure on earnings due to rising raw material and fuel prices
• Response to diversifying customer needs
• Intensifying changes in the environment (global political instability, US trade policy, etc.)
• Ongoing need for efficiency improvements in facility operations

Business Details

The "Other Business" segment consists of companies engaged in logistics operations and various administrative operations for Bandai Namco Group companies. The segment plays a role in supporting the reportable segments (Toys & Hobby, Digital, Visual & Music, Amusement) and works to achieve efficient operations in Group support-related tasks. Sales to external customers amounted to ¥6,340 million (FY2026, ending March 2026), accounting for only about 0.5% of the total, but sales including internal Group transactions reached ¥38,973 million.

Recent Overview

Segment profit significantly improved by 68.6% year-on-year, driven by strong Group business performance

In FY2026 (ending March 2026), demand for internal transactions expanded against the backdrop of strong performance in the Group's main businesses (particularly the Toys & Hobby Business and Amusement Business), with sales (including internal transactions) reaching ¥38,973 million (up 7.6% year-on-year) and segment profit significantly improving to ¥2,819 million (up 68.6% year-on-year). Sales to external customers slightly decreased to ¥6,340 million from ¥6,647 million in the previous period, but efficient operations associated with the expansion of the Group's overall business scale contributed to improved earnings.

Key Products

Growth Drivers

• Increased demand for logistics and administrative operations associated with the expansion of the Group's overall business scale
• Ongoing promotion of efficiency in Group support-related operations
• Increase in internal transactions linked to sales growth at Group companies (particularly the Toys & Hobby Business and Amusement Business)

Risks

• Decrease in internal transaction demand due to deteriorating performance of the Group's main businesses
• Pressure on earnings due to rising logistics costs (increases in raw material and fuel prices)
• High dependence on internal Group transactions and limited sales to external customers, resulting in little room for independent revenue expansion