Bandai Namco Flags Rising Risks for New IPs Amidst Crowded Release Calendar
Bandai Namco's European CEO, Arnaud Muller, recently highlighted the growing challenges publishers face in navigating the increasingly competitive video game market. While 2024 has seen relative stabilization after industry-wide adjustments, long-term concerns regarding development costs and unpredictable release schedules loom large.
Muller emphasized the heightened risk associated with launching new intellectual properties (IPs). Soaring development costs and extended timelines necessitate meticulous budgeting and contingency planning for potential overruns and delays. Failure to account for these factors can lead to significant financial setbacks.
The unpredictable nature of release dates further complicates matters. With a packed 2025 lineup featuring anticipated titles like Monster Hunter Wilds and Avowed, the certainty of timely launches remains questionable. Muller acknowledged the inherent uncertainty, stating that Bandai Namco faces the same challenges as other publishers.
Bandai Namco's strategy involves a balanced risk approach, prioritizing established IPs and focusing on specific genres. The upcoming Little Nightmares 3, for example, benefits from an existing fanbase, offering a degree of market security. However, Muller cautioned that even established franchises are not immune to shifting player preferences and market dynamics.
Muller identified three key factors crucial for future market growth: a positive macroeconomic environment, a robust platform 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.
Despite the challenges, Muller expressed optimism for 2025, suggesting that the successful launch of their planned portfolio could significantly contribute to market growth.
