Bandai Namco Cautions on New IP Challenges amid Saturated Industry Landscape

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

Bandai Namco Europe's CEO, Arnaud Muller, recently highlighted the significant challenges publishers face in today's competitive video game market, particularly concerning the release of new intellectual properties (IPs). His comments shed light on the evolving landscape of game development and release planning.

Economic Uncertainty and Scheduling Challenges

While Bandai Namco enjoys current success—driven by titles like Elden Ring's expansion and DRAGON BALL: Sparking! ZERO—Muller emphasizes the long-term hurdles. He points to rising development costs and unpredictable release dates as major sources of uncertainty. The increased expense and extended timelines necessitate careful budgeting and contingency planning to avoid unexpected financial setbacks.

A Shifting Definition of "Safe Bets"

Muller describes Bandai Namco's approach as a "balanced risk approach," carefully weighing investment levels against the potential of both existing and new IPs. However, he acknowledges that launching new IPs is increasingly challenging. The crowded market and unpredictable release windows of major titles in 2025 (including Monster Hunter Wilds, Avowed, and Ghost of Yōtei) add to the uncertainty.

Prioritizing Established IPs and Specific Genres

Muller suggests that focusing on established franchises like Little Nightmares 3 offers a degree of security, leveraging existing fanbases. He emphasizes the importance of understanding evolving player preferences and adapting strategies accordingly. New IPs, however, remain vulnerable to commercial failure due to their higher development costs and the competitive market.

Industry Growth and the Switch 2

Muller views 2024 as a year of industry stabilization. He identifies three key factors for future market growth: a favorable macroeconomic climate, robust platforms with large install bases, and expansion into new, high-growth markets (e.g., Brazil, India). Regarding the upcoming Nintendo Switch 2, Muller highlights Bandai Namco's platform-agnostic approach, indicating readiness to invest in the new console.

A Cautiously Optimistic Outlook

Despite the challenges, Muller remains optimistic, suggesting that a successful 2025 release slate for the company could significantly contribute to market growth next year. His statements underscore the need for strategic planning, careful risk assessment, and adaptability in the ever-evolving video game industry.