The company will no longer release new publications in physical format and will instead focus on the licensing of its brands.
"Bandai Entertainment announced today that it will stop releasing new titles on DVD, Blu-ray and Manga formats starting in February of 2012," said a spokesperson.
"The company will continue to sell catalogue titles and shift its operation to licensing which will include digital distribution, broadcast and merchandising."
Its planned manga releases for titles including Kannagi, Code Geass: Renya, Gurren Lagann, Gundam 001, Nichijou Manga and Tales of the Abyss: Jade have all been cancelled.
Planned anime releases Turn-A Gundam, Nichijou and Gosick have also been shelved.
The move signals further troubles for the manga industry, which saw the North American Tokyopop offices closed last year and the ending of its licensing agreement with Blizzard Entertainment.