Bandai Namco Shuts Down Once-promising Studio after Colossal Failure

Bandai Namco, a video game publisher known for titles like Ace Combat 8 and The Blood of Dawnwalker, has announced the shutdown of its Reflector Entertainment studio. The decision comes after a disappointing performance of Reflector's sole game, Unknown 9: Awakening, which released in 2024. Despite being acquired by Bandai in 2020, the studio struggled to gain traction with its supernatural stealth game, which received mixed reviews and performed poorly in the market, garnering a 59 Metascore on Metacritic.

The financial impact of Reflector's failure is significant, with Bandai estimating a €21 million (approximately $23.49 million) loss for the third quarter of its fiscal year. Following the game's poor reception, Reflector underwent several rounds of layoffs, with 18% of its workforce being let go just a month after the game's release.

Bandai executive Hervé Hoerdt attributed the decision to the studio's inability to capitalize on its initial success, stating that the company weighed all options before making this difficult choice. As the video game industry continues to face a wave of layoffs, totaling around 11,000 jobs this year, Bandai Namco's decision to discontinue Reflector's business adds to the growing list of studios facing closure due to the challenges of the modern gaming landscape.