Bandai Namco Issues Caution on Crowded Schedules, Risk to Original IPs

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

Bandai Namco Europe's CEO, Arnaud Muller, recently highlighted the significant challenges publishers face in navigating today's volatile video game market. His comments underscore the growing risks associated with launching new intellectual properties (IPs) in an increasingly competitive landscape.

Muller's assessment comes despite Bandai Namco's strong financial performance in 2024, fueled by successes like Elden Ring's expansion and upcoming titles. However, he emphasizes the long-term concerns surrounding development costs and unpredictable release schedules.

The company employs a "balanced risk approach," considering factors such as investment levels and the potential of existing versus new IPs. Yet, Muller acknowledges the shifting definition of "safe bets," stating that launching new IPs has become considerably more difficult. Escalating development costs and extended timelines necessitate anticipating potential budget overruns and delays.

The unpredictable nature of release dates further complicates matters. With numerous high-profile titles slated for 2025, including Monster Hunter Wilds and Avowed, Muller questions the reliability of projected launch windows, emphasizing the industry-wide uncertainty.

To mitigate risk, Bandai Namco is prioritizing established IPs and specific genres, as seen with the upcoming Little Nightmares 3. Muller highlights the loyalty of existing fanbases as a crucial factor in navigating the market's volatility. He notes that while established franchises offer a degree of stability, player preferences are constantly evolving.

Muller identifies three key factors for future market growth: a stable macroeconomic environment, a robust platform and install base, and the expansion into new, high-growth markets such as Brazil, South America, and India. He also emphasizes Bandai Namco's platform-agnostic approach, confirming their readiness to invest in the upcoming Nintendo Switch 2.

Despite the challenges, Muller remains optimistic about the future, believing that the successful launch of their 2025 game portfolio will contribute to significant market growth next year. His statements provide valuable insight into the evolving dynamics of the video game industry and the strategic considerations required for navigating its complexities.