# Bandai Namco Liquidates Reflector Entertainment Following Unknown 9 Commercial Failure The Montreal-based studio faces dissolution after failing to meet profitability and business expectations. - **Source:** [Rock Paper Shotgun](https://www.rockpapershotgun.com) - **Published:** 2026-11-10 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/c02c5135-d3ab-4d13-a357-a5cfed33bbc6 ## Studio Liquidation Confirmed Bandai Namco has officially announced the dissolution of Reflector Entertainment, the Montreal-based studio behind the 2024 title Unknown 9: Awakening. The parent company cited an inability to meet future business plans, profitability targets, and the necessity for additional investment as the primary drivers behind this final decision to liquidate. ## Financial Impact Analysis The closure is expected to result in an extraordinary loss of approximately 21 million euros for Bandai Namco. This significant financial impact will be reflected in the company's Q3 fiscal report for the period ending March 31, 2027, highlighting the severe economic consequences of the studio's recent project performance. ## Transmedia Ambitions Unfulfilled Reflector Entertainment was founded in 2016 by Alexandre Amancio and Lune Rouge before being acquired by Bandai Namco in 2020. The studio aimed to establish Unknown 9 as a expansive transmedia franchise, incorporating novels, comic books, and podcasts, but these ambitious goals ultimately failed to materialize due to low sales. ## Previous Workforce Reductions Signs of instability emerged shortly after the launch of Unknown 9: Awakening, when the studio laid off 18% of its workforce. Management initially framed these cuts as a transition to a new development phase, claiming that affected employees did not fit the specific roles required for the studio's active projects. ## Project Cancellations and Layoffs Further redundancies occurred in 2025 following the cancellation of an unannounced project that the company decided not to greenlight. CEO Hervé Hoerdt acknowledged that despite numerous timeline adjustments and significant capital investments, the studio's debut IP failed to meet the commercial expectations required for long-term business continuation. ## Legal and Procedural Hurdles The liquidation process will adhere to local Montreal labor laws and procedures, which may impact the specific timeline for the studio's closure. Similar regulatory protections currently affect other industry closures, such as Arkane Lyon, where French labor laws mandate extensive negotiations before a company can be suddenly shut down. ## Context of Industry Consolidation This closure follows a broader industry trend where parent companies are dissolving smaller subsidiaries that fail to demonstrate immediate profitability. Bandai Namco's decision reflects a shift toward prioritizing core business sustainability over the development of high-risk, experimental transmedia intellectual properties that require heavy, ongoing financial support to remain viable. ## Future Market Implications The dissolution of Reflector Entertainment marks the end of the Unknown 9 franchise and serves as a cautionary example of the risks inherent in launching new, multi-platform IPs. Investors and industry observers will likely monitor Bandai Namco’s upcoming fiscal reports to assess how this loss influences their future development strategies. ## Sources covering this story - [GamesIndustry.biz — Bandai Namco Closes Reflector Entertainment Amid Financial Loss](https://www.gamesindustry.biz/bandai-namco-closes-reflector-entertainment-expects-to-post-21m-loss-in-q3-as-a-result) - [Rock Paper Shotgun — Bandai Namco Liquidates Reflector Entertainment Following Game Failure](https://www.rockpapershotgun.com/bandai-namco-is-liquidating-unknown-9-awakening-studio-reflector-entertainment-following-multiple-previous-layoffs-since-the-games-launch) - [PC Gamer — Bandai Namco Shuts Down Reflector Entertainment After Game Failure](https://www.pcgamer.com/gaming-industry/2-years-after-unknown-9-awakening-bombed-bandai-namco-is-closing-the-studio-that-made-it/) --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._