Bandai Namco announced that Bandai Visual USA will cease to exist as of July 1, 2008. Bandai Entertainment will absorb Bandai Visual in its entirety, in response to conditions of the current market climate. All licenses will transfer to Bandai Entertainment.

Bandai Visual USA first opened its doors in 2005, with an emphasis on premium releases of Bandai Visual titles such as the Patlabor movies. The company met resistance in America, who were critical of the company's emphasis on high prices and low episode counts on DVD releases.