Bandai Namco Warns of Risks for New IPs Due to Crowded Release Schedules

Bandai Namco Flags Increased Risks for New IPs Amidst a Crowded Release Calendar

Bandai Namco's European CEO, Arnaud Muller, recently highlighted the significant challenges publishers face in navigating the current video game market. His comments, made during an interview, underscore the growing difficulties associated with releasing new intellectual properties (IPs).

Financial Success Doesn't Guarantee Future Stability

While Bandai Namco enjoyed strong financial performance in 2024, driven by titles like Elden Ring's expansion and DRAGON BALL: Sparking! ZERO, Muller emphasized the inherent uncertainties in the industry. He described 2024 as a "year of stabilization" following industry-wide restructuring, but warned about the long-term implications of rising development costs and unpredictable release schedules.

The Diminishing Returns of "Safe Bets"

Muller explained that Bandai Namco employs a "balanced risk approach" when assessing its game pipeline. This strategy considers investment levels, the potential of existing IPs versus new ones, and market segment analysis. However, he acknowledged that the notion of a "safe bet" is becoming increasingly complex. The escalating costs and extended timelines associated with game development necessitate careful consideration of potential overspending and delays.

Uncertain Release Dates Add to the Risk

The unpredictable nature of release dates further complicates the situation. With major titles like Monster Hunter Wilds and Avowed slated for 2025, Muller questioned the likelihood of these games launching on schedule, emphasizing that Bandai Namco faces the same uncertainties as other publishers.

Established IPs Offer a Degree of Stability, But Not Guaranteed Success

Muller highlighted the relative security offered by established IPs, citing Little Nightmares 3 as an example. He emphasized the importance of a loyal fanbase, suggesting that established titles are less susceptible to market fluctuations compared to new IPs. However, he cautioned that even established franchises are not immune to shifting player preferences.

Future Market Growth Hinges on Several Factors

Muller identified three key factors crucial for future market growth: a favorable macroeconomic environment, a robust platform and install base, and the expansion into new, high-growth markets like Brazil, South America, and India.

Platform Agnosticism and the Nintendo Switch 2

Regarding the upcoming Nintendo Switch 2, Muller stated Bandai Namco's platform-agnostic approach, emphasizing their readiness to invest in the new console.

Despite the challenges, Muller expressed optimism about the future, suggesting that a successful 2025 release lineup would likely lead to significant market growth.