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

Bandai Namco Flags Increased Risks for New IPs Amidst a Packed 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 launch of new intellectual properties (IPs). His comments shed light on the evolving landscape of game development and release planning.

Navigating Economic Uncertainty and a Crowded Market

While Bandai Namco enjoyed a successful 2024, driven by titles like Elden Ring's expansion and DRAGON BALL: Sparking! ZERO, Muller emphasized the inherent risks in the current climate. He cited rising development costs and unpredictable release dates as major sources of uncertainty. The industry, while experiencing a period of "stabilization" after the post-COVID market shifts, faces long-term challenges in managing these factors.

Muller explained that Bandai Namco employs a "balanced risk approach," carefully evaluating investment levels, existing IP potential, and market segment opportunities for new IPs. However, he acknowledged the shifting definition of "safe bets," stating that launching a new IP is significantly more challenging than in the past. Unforeseen overspending and delays are now considered integral parts of the planning process.

The unpredictability of release schedules further complicates matters. With major titles like Monster Hunter Wilds and Avowed slated for 2025, along with the potential launch of the Nintendo Switch 2, Muller questioned the likelihood of all these games launching on schedule.

Prioritizing Established IPs and Genre Focus

Muller advocated for a strategy that prioritizes established IPs, citing Little Nightmares 3 as an example of a title with a built-in fanbase less susceptible to market fluctuations. While established franchises offer a degree of security, he cautioned against complacency, acknowledging the ever-changing tastes of gamers. New IPs, on the other hand, face a higher risk of commercial failure due to their substantial development costs and the intense competition.

Future Market Growth and Platform Agnosticism

Muller identified three key factors for future market growth: a positive macroeconomic environment, a strong platform install base, and the expansion into new, high-growth markets like Brazil, South America, and India. He also emphasized Bandai Namco's platform-agnostic approach, expressing readiness to invest in the Nintendo Switch 2 should it launch successfully.

Despite the challenges, Muller remains optimistic, believing that a successful 2025 release slate would inevitably lead to market growth. His statements underscore the evolving risk assessment required for navigating the increasingly complex and competitive landscape of the video game industry.