Elden Ring maker Bandai Namco denies using this 'tactic' for cutting jobs; here's what the company said

Japanese video game publisher Bandai Namco Holdings has reportedly confirmed that it is reducing its workforce. Recently, the studio cancelled several titles due to weak demand. According to a report by Bloomberg, the company was using the controversial "expulsion rooms" (oidashi beya) tactic to encourage employees to resign voluntarily. This practice involves transferring employees to rooms where they are given no work, effectively pressuring them to quit. The report cited sources that suggested that Bandai Namco Studios has moved around 200 of its 1,300 employees to such rooms since April, resulting in nearly 100 resignations so far.

While it is legal under Japan's strict labour laws, the use of expulsion rooms has drawn criticism, with an anonymous website accusing Bandai Namco of employing various tactics to pressure employees to leave.


What Bandai Namco said


The company denied these allegations and stated that its goal is not to force employees out, Bloomberg reported.

In a statement, a Bandai Namco representative said: “Our decisions to discontinue games are based on comprehensive assessments of the situation. Some employees may need to wait a certain amount of time before they are assigned their next project, but we do move forward with assignments as new projects emerge. There is no organisation like an ‘oidashi beya’ at Bandai Namco Studios designed to pressure people to leave voluntarily.”


Gaming industry facing challenges


Bandai Namco, the publisher behind popular game franchises like Pac-Man , Dragon Ball , and Elden Ring , is facing pressure to cut costs and adapt to a changing gaming landscape. The company has cancelled or paused development on several titles, including games featuring Naruto and One Piece characters, and has written down 21 billion yen ($140.7 million) due to declining demand, particularly in the smartphone and online gaming sectors. This trend is mirrored by other publishers like Square Enix and Sony , who have also cancelled underperforming titles, highlighting the challenges faced by the industry in a post-pandemic world.