[Update: Further titles are now confirmed as cancelled. The lists have been updated to reflect this.]

Here is the first bad news of 2012, and it's a doozy. Bandai Entertainment have announced that they will stop releasing new anime and manga as of next month, instead deciding to focus on license distribution. They will continue to sell and even re-order the titles they currently distribute until the respective licenses expire, but planned titles they have yet to release have been subsequently cancelled. This includes:

Anime:

• Gosick
• Nichijou
• Turn A Gundam

Manga:

• Code Geass: Renya
• Kannagi volume 4, 5 and 6
• Lucky Star: Boo Boo Kagaboo
• Mobile Suit Gundam 00I
• Nichijou
• Tales of the Abyss: Jade's Secret Memories
• Tengen Toppa Gurren Lagann volume 7

Novels:

• Code Geass R2

While it is unfortunate to lose some big name titles, the real shame is that most of Bandai Entertainments contractors and employees will be laid off in the restructuring. I wish those that are affected the very best in finding new jobs in what must be an absolutely awful position to be in.

On the licensing front, there is every chance that these titles will be picked up by another company. Losing Nichijou and Gosick is an absolute shame, and I'm sure I'm not the only one disappointed by their cancellation.

[via ANN, thanks for the tip VicYoungblood!]