Bandai Namco is preparing to close another game development studio, with the company confirming plans to dissolve and liquidate Reflector Entertainment, the Montreal-based developer best known for creating Unknown 9: Awakening. The decision marks the end of a studio that was acquired as part of Bandai Namco’s ambitions to strengthen its Western development operations and produce original entertainment properties for international audiences.
According to an announcement from Bandai Namco Holdings, the company’s board of directors has approved the dissolution and liquidation of Reflector Entertainment following a review of its business portfolio, future development plans, required investments, and the studio’s prospects for profitability and continued operations. The liquidation process will follow applicable local laws, although a specific completion date has not yet been established.
Reflector Entertainment was acquired by Bandai Namco Entertainment Europe in 2020, with the Montreal studio becoming part of the publisher’s efforts to expand its development capabilities outside Japan. The studio’s ambitions extended beyond traditional video game development, as it originally envisioned building interconnected entertainment properties spanning video games, novels, comics, podcasts, and other media.
Those ambitions were put to the test with Unknown 9: Awakening, which launched in October 2024 for PlayStation 4, PlayStation 5, Xbox One, Xbox Series X|S, and PC. Unfortunately, the original intellectual property failed to achieve the reception or commercial performance Bandai Namco had hoped for, leaving the future of the franchise uncertain.
The situation also resulted in significant changes behind the scenes. Reflector announced in November 2024 that it would reduce its workforce by approximately 18 percent, followed by further restructuring in January 2025. The studio subsequently abandoned plans for another project in development, effectively ending its ambitions for additional Unknown 9 games while shifting its attention toward an existing Bandai Namco property.
Despite those efforts to keep the studio operating, Bandai Namco has now decided that continuing its business is no longer viable.
The closure will also have a financial impact on Bandai Namco Holdings, which expects to record an extraordinary loss of approximately €21 million (roughly 3.5 billion yen) in its consolidated financial statements beginning with the third quarter of its fiscal year ending March 31, 2027. The company noted that the estimated loss and its reporting timeline could change depending on the liquidation process and subsequent accounting considerations.
Reflector’s financial results also provide some insight into the difficulties surrounding its continued operation. While the studio recorded an operating profit for the fiscal year ending March 2026, it still reported a net loss, with its accumulated negative net assets reaching approximately 89.5 million Canadian dollars.
With the decision now made, Reflector Entertainment’s time under the Bandai Namco umbrella is coming to an end. Its closure represents another setback for the publisher’s efforts to establish a stronger Western development presence, while also bringing an end to the studio’s ambitions for the Unknown 9 universe.