Bandai Namco closes Reflector Entertainment, expects to post €21m loss in Q3 as a result

Bandai Namco announced the closure of Reflector Entertainment, the studio behind the 2024 action-adventure title Unknown 9: Awakening, following a review of its business strategy and investment needs. The publisher concluded that continuing operations would not be viable, leading to the decision to dissolve and liquidate the studio. Reflector was acquired by Bandai Namco in 2020, along with its subsidiary Reflector Interactive Productions, as part of its expansion in the Montreal gaming market.

The closure will result in an extraordinary loss of approximately €21 million for Reflector in the third quarter of the fiscal year ending March 31, 2027, as reported by Bandai Namco. The publisher attributed the loss to the studio's inability to achieve profitability despite significant investments and timeline adjustments. Reflector CEO Hervé Hoerdt acknowledged that Unknown 9 did not meet expectations, describing it as a failure of the studio's ambitious first project.

Reflector Entertainment was founded in 2016 by Alexandre Amancio and Lune Rouge and developed Unknown 9 as a transmedia franchise, including a podcast audio drama, novels, and a comic book series. The studio faced workforce reductions in 2024, cutting 18% of its staff due to a shift in development needs for active projects. Additional layoffs occurred in 2025 after the decision not to proceed with an unannounced project.

The studio ultimately cancelled the Unknown 9 franchise following low sales, marking the end of its ambitious transmedia initiative. Reflector's closure reflects broader challenges in sustaining new intellectual properties within the competitive gaming industry. Bandai Namco's decision underscores the financial risks associated with developing unproven franchises.