Elden Ring publisher Bandai Namco allegedly pressures 200 employees to quit using 'expulsion rooms' after canceling multiple games

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Bandai Namco Holdings Inc., the publisher behind major titles like Elden Ring, Pac-Man, Dragon Ball, and Gundam, is facing intense scrutiny for allegedly pressuring employees to leave as part of a broader effort to downsize its workforce.

 

According to Bloomberg, the company has reportedly placed around 200 of its 1,300 employees into so-called “expulsion rooms” or "boredom rooms" (oidashi beya). This controversial practice, used by some Japanese companies, circumvents the country’s stringent labor laws, which make it difficult to fire employees outright. In these rooms, employees are assigned no tasks, creating an environment that pressures them to resign voluntarily, forfeiting their severance pay. Reports indicate that around 100 workers have already resigned, with more departures expected soon.

 

Despite the backlash, Bandai Namco has denied these allegations. In a statement to Bloomberg, the company acknowledged the cancellation of several games and confirmed that some staff members are in a transitional phase, waiting to be reassigned to new projects. The company maintains that these changes are part of a broader strategic overhaul, attributing the reduction in projects to a comprehensive business review. A spokesperson clarified, “Our decisions to discontinue games are based on comprehensive assessments of the situation.”

 

Addressing the “expulsion room” allegations, the company added, “Some employees may need to wait before they are assigned their next project, but we continue with new assignments as projects emerge. There is no organization like an ‘oidashi beya’ designed to pressure people to leave voluntarily.”

 

The workforce cuts follow the cancellation of several high-profile games, including those based on the Naruto and One Piece anime series, as well as a secret project commissioned by Nintendo. While the details of the Nintendo project remain undisclosed, it’s clear Bandai Namco has suffered financially from these cancellations.

 

These losses are reflective of a broader industry trend as video game companies grapple with declining player engagement in the post-pandemic era. While Bandai Namco has seen success with recent hits like Elden Ring and Dragon Ball: Sparking! ZERO, the overall downturn in the gaming market has led to layoffs and project closures across the industry.

 

This situation mirrors challenges faced by other gaming giants. Microsoft, for instance, recently laid off 650 employees after cutting 1,900 jobs earlier in the year. The turbulence in the gaming industry shows that even the largest publishers are struggling with the post-pandemic slump, as decreased gaming activity ripples through development studios.

 

The controversy over Bandai Namco’s alleged use of “expulsion rooms” has sparked broader discussions about labor ethics in the gaming industry. While the company defends its workforce reduction as a strategic necessity, these claims raise concerns about how businesses respond to financial pressures in an increasingly unstable market. In the face of such challenges, how can companies balance business needs with fair treatment of employees?

 

• https://www.bloomberg.com/news/articles/2024-10-15/bandai-namco-begins-to-cut-headcount-after-culling-game-titles
• https://www.windowscentral.com/gaming/report-bandai-namco-pressures-200-employees-to-quit-with-expulsion-rooms
• https://www.ign.com/articles/bandai-namco-reportedly-sending-staff-to-expulsion-rooms-where-they-have-nothing-to-do-after-canceling-multiple-games-including-a-mystery-nintendo-project

 

Image: Wachiwit | Dreamstime.com