Japanese toy manufacturer Bandai Co Ltd, responsible for the Tamagotchi virtual pet, has scrapped its Pippin @World set-top console and is disbanding its Bandai Digital unit in Japan. Developed with Apple Computer Inc and offering internet capability, the product was also known as the Pippin Atmark. Bandai Digital in Japan was primarily involved in the launch of Pippin @World and is discontinuing operations, taking a charge of $214m. Existing facilities and workers will be re-absorbed into Bandai, the company said. Although Bandai Digital Entertainment in the US will discontinue marketing Pippin @World, it will continue to operate with a new focus. The new emphasis will be on applications for the internet and the Windows CE operating system for handheld devices. It will continue with plans to launch Surf Monkey, a children’s internet product featuring parental protected web browsing, email and chat and will still market its current line of CD-ROMs. It is currently developing a Windows CE version of DigiMon, the digital monster toy that is the follow-up to Tamagotchi. Bandai sold 30,000 units of Pippin@World in Japan and 12,000 in the US. The liquidation has forced Bandai to sharply downscale its earnings estimate for the company as a whole, but success of the Tamagotchi virtual pet means that its parent current profit will exceed its earlier target.
