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New business structure after Bandai/Namco merger

A new, unified business structure and revenue forecasts have been announced following the merger of Japan's largest toy manufacturer Bandai and games publisher Namco

A new, unified business structure and revenue forecasts have been announced following the merger of Japan's largest toy manufacturer Bandai and games publisher Namco.

The two companies will merge into Bandai Namco Holdings on September 29th, with a dedicated gaming subsidiary forming part of the new business structure. Bandai, in addition to toy manufacturing, deal with games anime and internet content, whilst Namco also operate numerous non-gaming businesses, including the Italian Tomato restaurant franchise found throughout Japan.

In order to streamline business and unify the two companies, Bandai Namco Holdings will reorganise their subsidiaries and operations into six sectors: amusement facilities, network content, movie and audio content, toy and hobby, game content and affiliated business.

For the current business year ending March 31, 2006, the two companies have forecast revenue of 474 billion Yen (EURO 3.5 billion) and a profit of 24.4 billion yen (EURO 180 million). Revenue for the business year ending March 31, 2008, is targeted at 550 billion yen (EURO 4.1 billion).

The gaming divisions of both companies will be merged into a new subsidiary by 1st April 2006, called Bandai Namco Games. This will consist of some 1,300 Namco developers and 60 Bandai developers, though two existing Bandai subsidiaries (Banpresto and BEC) will not be absorbed into Bandai Namco Games.

In the United States, Bandai Namco Holdings USA will be established by January 2006 and will manage all six American subsidiaries. Bandai president Takeo Takasu will become the president and representative director of Bandai Namco Holdings, while Namco vice chairman Kyushiro Takagi will become chairman and director. There are no further changes to the board of directors currently announced.

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