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

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

Bandai Namco Europe's CEO, Arnaud Muller, recently highlighted the growing challenges publishers face in navigating the increasingly competitive video game market. While 2024 has seen relative stabilization following industry-wide adjustments, Muller emphasizes the long-term risks associated with developing and releasing new intellectual properties (IPs).

Muller points to escalating development costs and unpredictable release timelines as major sources of uncertainty. The success of Elden Ring's expansion and upcoming titles like DRAGON BALL: Sparking! ZERO notwithstanding, the company employs a "balanced risk approach," carefully weighing investment levels against the potential of both established and new IPs. He acknowledges that even "safe bets" are becoming less predictable.

The interview with GameIndustry.biz revealed Bandai Namco's preference for established franchises like the upcoming Little Nightmares 3, citing a loyal fanbase as a mitigating factor against market fluctuations. However, Muller cautions that even successful IPs are not immune to changing player preferences. New IPs, with their substantial development costs and the competitive market landscape, face significantly higher risks of commercial failure.

Muller's outlook for market growth hinges on three key elements: a favorable macroeconomic climate, robust platform install bases, and the expansion into new, high-growth markets such as Brazil, South America, and India. He also notes Bandai Namco's platform-agnostic approach, expressing readiness to invest in the upcoming Nintendo Switch 2.

Despite the challenges, Muller remains optimistic, suggesting that a successful 2025 release slate could significantly boost market growth. The crowded release calendar, however, underscores the heightened risk and careful planning required for launching new IPs in the current market.