Bandai Namco Flags Rising Risks for New IPs Amidst a Packed Release Calendar
Bandai Namco's European CEO, Arnaud Muller, recently highlighted the increasing difficulties publishers face in navigating the current video game market. While 2024 has seen relative stabilization after industry-wide adjustments, the long-term outlook presents significant challenges, particularly for new intellectual properties (IPs).
Muller emphasizes the evolving landscape of "safe bets" in game development. He acknowledges that while established IPs offer a degree of security, the rising costs and unpredictable timelines associated with new IP development pose considerable risk. Increased development budgets and potential delays necessitate a cautious approach to investment, lest publishers face unforeseen financial setbacks.
The uncertainty extends to release schedules. With a plethora of anticipated titles slated for 2025, including major releases like Monster Hunter Wilds and Avowed, Muller questions the reliability of projected launch dates, emphasizing the industry-wide nature of this challenge.
Bandai Namco's strategy prioritizes a balanced risk approach, carefully considering investment levels and the potential of both existing and new IPs within specific market segments. The company's focus on established franchises, such as the upcoming Little Nightmares 3, provides a degree of protection, leveraging existing fanbases.
However, Muller cautions that even established franchises aren't immune to market shifts. He highlights the vulnerability of new IPs to commercial failure due to high development costs and market saturation. The success of Little Nightmares 3, for instance, hinges less on competing releases and more on its dedicated fanbase.
Looking ahead, Muller identifies three key factors for future market growth: a favorable macroeconomic climate, a robust platform and install base, and the expansion into new, high-growth markets like Brazil, South America, and India. He also confirms Bandai Namco's platform-agnostic approach, expressing readiness to invest in the upcoming Nintendo Switch 2.
Despite the challenges, Muller remains optimistic, believing that a successful 2025 release pipeline could significantly contribute to market growth. The overall message underscores the need for strategic planning and risk management in the increasingly competitive video game industry.
