The metaverse is one buzzword that several industries have been focusing on lately. While there is skepticism about the feasibility of the concept, many tech giants and brands are rushing to get in on the idea, including Disney, Epic Games, Microsoft, Facebook, and Square Enix. In addition, Bandai Namco is apparently making an effort to tap into the potential of the metaverse idea.
In its latest trimestral earnings briefing, the company revealed that it’s going to invest $130 million (15 billion yen) between April 2022 and March 2025 on the formation of an “IP Metaverse” as part of the so-called “IP Axis strategy.” Essentially, the idea is to maximize the value of its IP and create it more engaging and reachable to users around the world.
The company says, “We are working to create a metaverse for each IP as a new framework with the aim of connecting effectively with fans. This IP Metaverse anticipates virtual spaces that allow users to enjoy various entertainment on an IP axis and frameworks that leverage Bandai Namco’s characteristic strengths to fuse physical products and locations with digital components”.
“We are aiming to work in the direction of the open structures that provide places to connect with fans and business partners. Through IP Metaverse, we are working towards establishing communities among Bandai Namco and fans and among fans themselves. Stated the company.
“We are putting our efforts to build deep, comprehensive, multifaceted connections that last long, and we will continue to emphasize the quality of those connections. In this manner, we will work to capitalize on IP value over the medium to long term.” Understanding that Metaverse idea will be a core strategy within Bandai Namco’s digital business sub-segment.
Observing more broadly at the company’s Network Entertainment division, which houses its video game operations, net sales for the quarter increased to 92.7 billion yen from 86.6 billion yen. In comparison, operating profit fell to 11.6 billion yen from 12.8 billion yen. The company is worried about investing in the next few years. People may predict that this is not going to be a short-term project.
As such, it’s expected to be some time before we see any tangible details of what this large-scale initiative will ultimately bring about. Nevertheless, Bandai Namco concluded its mid-term plan by stating that recognizing the metaverse idea is one of its three primary strategies for its digital business unit.
With this development, there may be a chance that leads to excellent and innovative games. The future will tell if this ends up being a worthwhile venture or not.
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