Namco Bandai’s video game business contributed heavily to the company’s successful quarter. Net sales from the Content segment of Namco Bandai, the segment responsable for video games and network content, rose above all other segments, amassing ¥56.968 billion (approx. $727.03 million) earnings for the first quarter, a rise of 160%.
The second highest earning segment of Namco Bandai was its Toys and Hobby segment, which reported first quarter results of ¥39.95 billion (approx. $509.84 million).
The main game titles for Namco Bandai during this quarter were Soul Calibur V, Naruto Ultimate Ninja Storm Generatoins, and Toriko Gourmet Survival 2. Soul Calibur V managed to sell 680,000 units during this quarter alone for a cumulative unit sale total of 1,380,000 units.
Namco Bandai forecasts a gross profit of ¥167.5 billion (approx. $2.14 billion) for the entire fiscal year, which is on par with the previous year.
The company’s financial results are embedded at the bottom of this article.
Analysis:: What’s interesting to note is that, despite how Namco Bandai is having a more successful first quarter than it had last year, they still estimate as coming out at almost exactly last fiscal year’s total gross profit. This is because the company’s projections for the net sales of every segment of the company except Content are all down from previous years. Although Namco Bandai’s video game business is doing well, other businesses like toys and amusement facilities are all suffering compared to previous earnings. This means that the company anticipates that it will more or less break even with last year despite its successful first quarter.
So, at the end of the day, Namco Bandai’s propping up its weaker, more anemic businesses with its successful and healthy video game business. While Soul Calibur fans might take the moment to celibrate, everyone else might not want to go investing in Namco Bandai just yet.