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Bandai Namco achieves record Q1 sales, but Digital segment operating profit drops 30.9%

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Bandai Namco achieves record Q1 sales, but Digital segment operating profit drops 30.9%

The firm's Digital segment, which includes games, saw operating profit fall to ¥15 billion and net sales drop 15.6% to ¥90.9 billion

However, its Digital segment, which includes gaming, experienced significant declines due to fewer title releases compared to the same period last year.

For the first three months of the fiscal year ending March 31, 2026:

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.


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