Bandai Namco Flags Increased Risks for New IPs Amidst a Packed Release Calendar
Bandai Namco's European 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, shared in an interview with GameIndustry.biz, underscore the growing complexities of game development and release planning.
Muller acknowledges Bandai Namco's strong 2024 performance, driven by successes like Elden Ring's expansion and DRAGON BALL: Sparking! ZERO. However, he emphasizes the long-term uncertainties. While 2024 is seen as a "year of stabilization" following industry-wide restructuring, the escalating costs and unpredictable release timelines pose considerable risks.
Bandai Namco employs a "balanced risk approach," considering investment levels, existing IP potential, and market segment analysis. Yet, Muller admits that the notion of "safe bets" is shifting. He states that launching a new IP is increasingly challenging due to rising development costs and extended timelines, potentially leading to budget overruns and delays.
The unpredictable nature of release dates further complicates matters. With major titles like Monster Hunter Wilds and Avowed slated for 2025, alongside the potential launch of the Nintendo Switch 2, Muller questions the reliability of these release windows, emphasizing the industry-wide uncertainty.
Muller suggests that focusing on established IPs, such as the upcoming Little Nightmares 3, offers a degree of protection. He highlights the loyalty of existing fanbases, providing a more predictable market response. However, he cautions that even established franchises aren't immune to shifting player preferences. New IPs, on the other hand, face a significantly higher risk of commercial failure due to their substantial development costs and the competitive market.
Muller identifies three key factors for future market growth: a positive macroeconomic environment, robust platform install bases, and the expansion into new, high-growth markets like Brazil, South America, and India. He also confirms Bandai Namco's platform-agnostic approach, stating readiness to invest in the Nintendo Switch 2 should it launch.
Despite the challenges, Muller expresses optimism, suggesting that the market will likely grow in 2025 if the planned releases materialize. His comments highlight the evolving landscape of game development and the increasing strategic importance of risk management for publishers.
