New IP Risks: Bandai Namco Sounds Alarm

Bandai Namco Flags Increased Risks for New IPs Amidst a Packed Release Calendar

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

Muller's comments, made during an interview with GameIndustry.biz, come despite Bandai Namco's strong financial performance in 2024, driven by successes like Elden Ring's expansion and DRAGON BALL: Sparking! ZERO. However, he emphasizes the long-term uncertainties inherent in game development and release planning.

The rising costs and extended timelines associated with game development are forcing a more cautious approach. Muller describes Bandai Namco's strategy as a "balanced risk approach," carefully weighing investment levels against the potential of both existing and new IPs. He acknowledges that the notion of "safe bets" is evolving, with the launch of new IPs becoming increasingly complex.

The unpredictability of release dates further exacerbates the risk. With major titles like Monster Hunter Wilds and Avowed slated for 2025, Muller questions the likelihood of these adhering to their announced release windows, stating that Bandai Namco faces the same uncertainties as other publishers.

Focusing on established IPs, such as the upcoming Little Nightmares 3, offers a degree of protection, according to Muller. He believes a loyal fanbase provides a more secure market, less susceptible to the volatility introduced by competing AAA releases. However, even established franchises are not immune to shifting player preferences and market dynamics.

Muller identifies three key factors for future market growth: a stable macroeconomic environment, robust platform install bases, and the expansion into new, high-growth markets like Brazil, South America, and India. He also emphasizes Bandai Namco's platform-agnostic approach, highlighting their readiness to invest in the upcoming Nintendo Switch 2.

Despite the challenges, Muller expresses optimism for 2025, suggesting that the successful launch of the planned portfolio would inevitably lead to market growth.