Bandai Namco Flags Risks for New IPs Amidst Crowded Release Calendar
Bandai Namco Europe's CEO, Arnaud Muller, recently highlighted the significant challenges publishers face in navigating the current video game market. His comments, shared with GameIndustry.biz, underscore the increased risks associated with launching new intellectual properties (IPs) in a highly competitive landscape.
Muller acknowledges Bandai Namco's strong performance in 2024, boosted by titles like Elden Ring's expansion and DRAGON BALL: Sparking! ZERO. However, he emphasizes the long-term uncertainties stemming from escalating development costs and unpredictable release dates.
The company employs a "balanced risk approach," considering investment levels and the potential of both existing and new IPs. While Muller believes "safe bets" still exist, he stresses the growing difficulty of successfully launching new IPs. The unpredictable nature of release schedules, with major titles like Monster Hunter Wilds and Avowed slated for 2025, adds further complexity. The potential launch of the Nintendo Switch 2 further complicates the equation.
Muller suggests that focusing on established IPs, such as the upcoming Little Nightmares 3, offers a degree of stability, leveraging existing fanbases. However, he cautions that even established franchises require careful management, as player preferences constantly evolve. New IPs, with their substantial development costs, are particularly vulnerable in the current crowded market.
Muller views 2024 as a "year of stabilization," but 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. Bandai Namco's platform-agnostic approach, ensuring their games are available across multiple platforms including the Nintendo Switch, positions them for opportunities presented by new console releases.
Despite these challenges, Muller remains optimistic, believing that a successful 2025 release slate for their portfolio could significantly drive market growth. The statement highlights the delicate balancing act publishers face between pursuing innovative new IPs and capitalizing on the relative safety of established franchises in a rapidly evolving gaming landscape.
