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Bandai Co., a major toy maker, will spin off its network division and turn it into a subsidiary later this week to raise the efficiency of its network entertainment business, the firm announced Monday.

Bandai will set up Bandai Networks as a 100 percent subsidiary on Thursday with capital of 500 million yen. The new firm will start operating Oct. 1 with 35 employees.

The spinoff aims to raise the efficiency of the network business, which requires speedy management decisions and high-level technical expertise, said Takeo Takasu, president of Bandai.

The new company will take over Bandai’s Internet service that distributes content via cellphones and sells goods and operates games over the Internet.

Bandai currently distributes content such as comic characters and melodies to three domestic telecom groups that offer Internet services via cellphones. It started a similar service in South Korea in August.

The new firm will also carry out research and development for new network business, including further development of WonderSwan, Bandai’s portable game console.

The new company hopes to go public in a few years, while aggressively pursuing capital and business tieups with other companies, Takasu said.

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