Bandai Namco Online, developer of Blue Protocol, to be absorbed by Bandai Namco Entertainment and dissolve

Bandai Namco Online and Bandai Namco Entertainment have announced the decision to merge, effective from April 1, 2025. The surviving company will be Elden Ring and Dragon Ball! Sparking ZERO publisher Bandai Namco Entertainment, while the absorbed company will be Bandai Namco Online. In absorption-type merges, the acquirer takes over all of the assets and liabilities of the target company and the target company is dissolved.

Bandai Namco Online is Bandai Namco Holdings’ wholly owned subsidiary that was founded in 2009, specializing in developing online games for PC, consoles and mobile devices. Titles released by the developer include Blue Protocol, IDOLiSH7, Gundam Tribe, Gundam Evolution and SD Gundam Operation. 

Over the past two years, Bandai Namco Online has gone through an extremely rough patch, reporting large financial losses and insolvency. A significant contributor to this was the unpopularity and underperformance of their high-budget MMORPG Blue Protocol, which will be discontinued in January without making it to global audiences. 

According to the recent announcement, the purpose of the absorption-type merger with Bandai Namco Entertainment is to “respond to the recent changes in the game business environment and to strengthen the overall structure of the digital business sector.” 

Titles currently being run by Bandai Online will be taken over by Bandai Namco Entertainment, and all customer contracts and the like will be transferred over as well.