However, the firm also forecast slower earnings growth for the current year due to sluggish sales of PlayStation 3 games.The holding company for toymaker Bandai and game publisher and game arcade facility operator Namco reported a rise in operating profit of 18% to 42.2 billion yen ($351.8 million), while sales increased 2% to 459.1 billion yen ($3.83 billion).
Japan's second-largest video game developer’s operating income for its game division and amusement facilities business grew 18.6% and 112% respectively, while the company's movie/music division reported operating profit of 9.5 billion yen ($79.2 million), up from 6.2 billion yen ($51.7 million) in the previous year.
During the last fiscal year the company shut 46 unprofitable amusement facilities and intends to close another 40 outlets during the current year.
Namco Bandai forecast slower profit growth for the current year due to the PlayStation 3's weaker-than-anticipated entry into the market. It projected a 9.3% increase in net profit to 26.5 billion yen ($221 million), a 6.6% rise in operating income to 45 billion yen ($375.1 million) and 4.5% sales growth to 480 billion yen ($4 billion).
“PS3 did not make a good start, which will make the transition from the old game console to the next generation system more prolonged than we had earlier thought,” said Namco Bandai president Takeo Takasu (pictured) during a news conference.
“This will keep a lid on sales of our video games in the first half, although we believe that sales of PS3 will increase in the second half (to March 2008),” Takasu said.
Namco Bandai said it was disappointed by sales of PS3 exclusive game Gundam Muso which shifted only 300,000 units, falling short of the firm's initial half million estimate.
Over the coming fiscal year Namco Bandai plans to release 23 titles for Sony’s PS3, 24 games for Microsoft's Xbox 360 and
37 titles for Nintendo’s Wii console.
