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 the current video game market, particularly concerning the release of new intellectual properties (IPs). His statements underscore the growing risks associated with new IP development in an increasingly competitive landscape.

Muller's concerns stem from a confluence of factors. Rising development costs and unpredictable release timelines introduce significant financial uncertainty. The substantial investment required for new IPs, coupled with potential delays, creates a high-risk scenario. He emphasized the need for a "balanced risk approach," carefully considering investment levels and the potential return on investment for both established and new IPs.

While 2024 has been described as a year of stabilization following industry-wide restructuring, the long-term outlook presents challenges. The sheer number of anticipated releases in 2025, including titles like Monster Hunter Wilds, Avowed, and Ghost of Yōtei, raises questions about the reliability of projected release dates. Muller acknowledges the inherent uncertainty, stating that Bandai Namco faces the same challenges as other publishers.

Muller advocates for a strategy focused on established IPs and specific genres, citing Little Nightmares 3 as an example. He believes that leveraging existing fanbases mitigates some of the risk associated with new releases. However, he also cautions that even established franchises are not immune to changing player preferences and market dynamics.

For the market to experience substantial growth, Muller identifies three key factors: a favorable macroeconomic environment, a robust platform install base, and the expansion into new, high-growth markets like Brazil, South America, and India.

Regarding the upcoming Nintendo Switch 2, Muller emphasizes Bandai Namco's platform-agnostic approach, highlighting their readiness to invest in the new console should it prove successful.

Despite the challenges, Muller expresses optimism for the future, contingent on the successful launch of the planned 2025 game portfolio. The success of this portfolio, he believes, is directly tied to the overall growth of the market in the coming year.