23 Daily — According to gamesindustry.biz, prominent game publisher Bandai Namco has decided to close its Montreal-based game development studio Reflector Entertainment. Reflector, primarily responsible for developing the action-adventure game Unknown 9: Awakening, is being dissolved and liquidated following a comprehensive review of future business plans and profitability prospects.
Reflector Entertainment Faces Operational Challenges and Layoffs
Established in 2016 by Alexandre Amancio and Lune Rouge, Reflector Entertainment was acquired by Bandai Namco in 2020. Apart from developing Unknown 9: Awakening, the studio pursued a transmedia IP approach, encompassing a podcast audio drama, novels, and comic book series.
However, within a month of release, Reflector announced an 18% workforce reduction, citing a transition to a new development phase and project needs. Additional layoffs occurred in 2025 after an unannounced project failed to be greenlit, alongside the cancellation of the Unknown 9 franchise due to poor sales performance.
Financial Impact on Bandai Namco's Q3 Earnings
Bandai Namco stated that as a result of closing Reflector Entertainment, it expects an extraordinary loss of approximately €21 million in its fiscal year ending March 31, 2027, Q3 financial results. The acquisition of Reflector's subsidiary, Reflector Interactive Productions, was also included.
Reflector CEO Hervé Hoerdt acknowledged that despite numerous timeline adjustments and investments, Unknown 9 did not meet expectations. The decision reflects the failure of the studio's ambitious and courageous first project—a new IP with a rich transmedia universe.
Editor's take: Lessons from Reflector's Closure for Game Industry and Entrepreneurs
The closure of Reflector Entertainment highlights the high risks associated with launching large-scale transmedia IP projects in game development. Emerging teams partnering with major capital and multiple media formats must carefully evaluate market acceptance and cost-effectiveness.
Entrepreneurs in game or transmedia fields can mitigate investment risks by validating user feedback and sales incrementally. Adjusting project strategies and flexible team resource management are critical. Reflector's closure serves as a reminder that balancing innovation and commercial success requires cautious navigation.