Bandai Namco Flags Increased Risks for New IPs Amidst Crowded Release Calendar
Bandai Namco's European CEO, Arnaud Muller, recently highlighted the significant challenges publishers face in navigating the current video game market. While 2024 has seen relative stabilization after industry-wide adjustments, the long-term outlook for new intellectual property (IP) releases presents considerable uncertainty.
Muller emphasizes the increased risks associated with developing new IPs, citing rising development costs and unpredictable release schedules. The escalating expense of game creation necessitates careful budgeting and contingency planning to mitigate potential overspending and delays. Unforeseen setbacks can significantly impact a project's success.
The crowded 2025 release calendar, featuring anticipated titles like Monster Hunter Wilds and Avowed, further complicates the situation. Muller questions the likelihood of all slated releases adhering to their projected launch windows, emphasizing the inherent unpredictability.
Bandai Namco's strategy prioritizes a balanced risk approach, considering investment levels and the potential of both existing and new IPs. While established franchises offer a degree of security, Muller acknowledges that even these are not immune to shifting player preferences. New IPs, however, face a higher risk of commercial failure due to their substantial development costs and the competitive market. The upcoming Little Nightmares 3, with its established fanbase, serves as an example of a relatively safer bet.
Muller identifies three key factors for future market growth: a favorable macroeconomic environment, a robust platform install base, and the expansion into new, high-growth markets such as Brazil, South America, and India. Bandai Namco's platform-agnostic approach, demonstrated by their readiness to support the upcoming Nintendo Switch 2, further highlights their adaptability.
Despite these challenges, Muller expresses optimism about the future, contingent upon the successful launch of their planned 2025 releases. The success of these titles will be crucial in determining the overall market growth next year.
