In early 2005, Namco Ltd. and Bandai Co. Ltd. announced plans to combine their operations.The merger took effect on September 29 of that same year. For the first six months, both companies stayed intact under the umbrella of the newly created Namco Bandai Holdings.
On March 31, 2006, the video games division of Bandai was merged into Namco which in turn became Namco Bandai Games.Namco Hometek and Bandai Games had already merged on January 2, 2006 to form Namco Bandai Games America in the United States
On April 1, 2008, Banpresto's video game operations were absorbed by Namco Bandai Games.On April 1, 2009, Bandai Networks, Namco Bandai's mobile phone business, was dissolved and absorbed into Namco Bandai Games.
In 2010, Namco Bandai Games entered the Guinness World Records for being the company that released the most TV commercials for the same product, a Nintendo DS game called Solatorobo: Red the Hunter. They created 100 versions of the ad as the game consists of 100 chapters.
In early 2011, Namco Networks was absorbed to Namco Bandai Games America, effectively consolidating Namco Bandai's American console, handheld and mobile video game development operations.
On April 2, 2012, Namco Bandai Games spun off its development operations into a new company called Namco Bandai Studios. The new company was spurred by Namco Bandai's interest in faster development times and tighter cohesion between disparate development teams. It will comprise approximately 1,000 employees, who are already part of Namco Bandai.
In March 2013, Namco Bandai Games established two new game studios. The first, Namco Bandai Studios Singapore, will be Namco Bandai's "leading development center" in Asia and develop game content for the Asia Pacific. The second studio, Namco Bandai Studios Vancouver, will work on online social games and game content development for North America and Europe, and will be established within The Center for Digital Media (CDM).In July 2013, Namco Bandai Partners (NBP), which used to oversee the PAL distribution network since September 2012, merged with Namco Bandai Games Europe (NBGE) in order to push distribution and publishing into one entity, Namco Bandai Games Europe (NBGE).
On January 25, 2014, Namco Bandai Games and Namco Bandai Studios announced that the companies would be known worldwide as Bandai Namco Games and Bandai Namco Studios, respectively. The change is intended to unify the brand internationally in order to increase the "value" and "appeal" of the name.In December 2014, the company announced in a press release that the full company name will be changed to Bandai Namco Entertainment on April 1, 2015