Bandai Namco Cautions on Risks to New Titles Amidst Busy Release Calendar

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

Bandai Namco's European CEO, Arnaud Muller, recently highlighted the growing challenges faced by publishers in navigating the increasingly crowded video game release schedule. This poses significant risks, particularly for new intellectual properties (IPs).

Muller's comments, shared in an interview with GameIndustry.biz, come despite Bandai Namco's strong financial performance in 2024, fueled by successes like Elden Ring's expansion and DRAGON BALL: Sparking! ZERO. However, the long-term outlook presents considerable hurdles.

The rising costs and unpredictable timelines associated with game development are key concerns. Muller emphasized the importance of a "balanced risk approach," considering factors like investment levels and the potential of both existing and new IPs. He acknowledged that "safe bets" are becoming rarer, especially for new IPs. The difficulty lies in accurately predicting and mitigating potential overspending and delays.

The uncertainty extends to release dates. With a packed 2025 lineup including titles like Monster Hunter Wilds and Avowed, Muller expressed doubt about the reliability of projected release windows, stating that "we are no different to everybody else."

Focusing on established IPs, such as the upcoming Little Nightmares 3, offers a degree of protection, Muller suggested. These franchises benefit from a built-in fanbase, providing some insulation against market fluctuations. However, even established IPs aren't guaranteed success, as player preferences constantly evolve. New IPs, burdened by high development costs and fierce competition, are significantly more vulnerable to commercial failure.

Muller characterized 2024 as a "year of stabilization," but identified three crucial factors for future market growth: a positive macroeconomic environment, strong platform install bases, and the expansion into new, high-growth markets like Brazil, South America, and India.

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

Despite the challenges, Muller remains optimistic, believing that a successful 2025 release slate for Bandai Namco would contribute significantly to overall market growth.