Job losses and the appointment of a distribution partner may be on the cards.
Games publisher Namco Bandai is reviewing its European mobile games operation, and job losses are on the cards.
Following rumours in recent days of significant cuts at the publisher, ME checked in with Namco Bandai, and received an official statement outlining the company’s current situation.
“NBNE can confirm that it is in the process of reviewing its operations, and may be appointing a distribution partner to manage part of its mobile operations going forwards," says the statement.
"An announcement will be made in the coming weeks about this. There may be some job losses as a result, but we are working hard to ensure that these are minimised.”
The news is a surprise, because just a few months ago, Namco Bandai was seemingly on the rise. It hired former Upstart Games boss Barry O’Neill as president of its European division, with an initial target of becoming the fourth largest mobile games publisher in Europe, behind EA, Gameloft and Glu.
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The exit from the market of mid-tier rivals like Vivendi Games Mobile and THQ Wireless seemed to help that aim, but it seems Namco Bandai has encountered a challenging environment nonetheless.
“Like many of our peers, NBNE has been forced to take steps to safeguard its current business and future position within the market,” continues the statement.
“By taking this step as a last resort, we hope to continue to provide mobile users with a great mix of classic, new and original mobile games titles and be in a strong position to grow when the economic tide turns.”
Namco Bandai has not confirmed details of who its new distribution partner might be, but sources tell ME that EA Mobile could be in the frame, adding Namco to its existing Euro distribution deal with Taito.
