Namco Bandai of America has confirmed the loss of 90 staff, as the Pac-Man and Tekken firm moves further into digital distribution.
Marketing VP Carlson Choi told VentureBeat that the publisher also intends to make Japan carry the bulk of its development work from hereon in.
"We are partnering with external development studios out there because that is where the game business is going," he said.
"Our goal is to move into digital games and broaden to different platforms. The details are being sorted out now."
Having recently merged its mobile and online divisions, the company now intends to pursue social and iOS gaming, and to create titles playable on multiple formats.
The staff cuts were attributed to a disparity between their skills and Namco Bandai's current needs.