Bandai Namco Flags Risks for New IPs Amidst a Crowded Release Calendar
Bandai Namco Europe's CEO, Arnaud Muller, recently highlighted the significant challenges publishers face in today's 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 a Packed Release Calendar
While Bandai Namco enjoyed a successful 2024, driven by titles like Elden Ring's expansion and DRAGON BALL: Sparking! ZERO, Muller emphasized the inherent uncertainties. He described 2024 as a "year of stabilization" following industry-wide restructuring, but long-term challenges remain. Rising development costs and unpredictable release dates present significant risks.
The Shifting Definition of "Safe Bets"
Muller explained Bandai Namco's "balanced risk approach" to its game pipeline, considering investment levels, existing IP potential, and market segment analysis. However, he acknowledged that launching new IPs is increasingly challenging. Unforeseen cost overruns and delays are major concerns, potentially leading to unpleasant surprises. The uncertainty extends to release schedules, with questions surrounding the timely arrival of anticipated 2025 titles like Monster Hunter Wilds and Avowed.
Prioritizing Established IPs and Specific Genres
Muller highlighted the relative safety of focusing on established franchises and specific genres. The upcoming Little Nightmares 3, for example, benefits from a pre-existing fanbase. However, he cautioned that even established IPs are not immune to shifting player preferences and market dynamics. New IPs, on the other hand, face a higher risk of commercial failure due to their substantial development costs and the competitive market.
Factors for Future Market Growth
Muller identified three key elements for returning the market to significant growth: a positive macroeconomic environment, a strong platform and install base, and the expansion into new, high-growth markets like Brazil, South America, and India. He also confirmed Bandai Namco's platform-agnostic approach, expressing readiness to invest in the upcoming Nintendo Switch 2.
Optimism for the Future
Despite the challenges, Muller remains optimistic, believing that a successful 2025 release lineup could drive significant market growth. The success of new IPs remains a challenge, but a balanced approach, focusing on established brands and strategic market expansion, appears to be the path forward for Bandai Namco.
