Bandai Namco Flags Growing Risks for New IPs Amidst Crowded Release Calendar
Bandai Namco Europe's CEO, Arnaud Muller, recently highlighted the increasing challenges 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 hurdles, particularly for new intellectual properties (IPs).
Muller emphasizes the rising development costs and unpredictable release timelines as major concerns. The escalating expenses and potential for delays necessitate a cautious "balanced risk approach" to game development. He points out that while some "safe bets" exist, launching a new IP is significantly more challenging than in the past. This is further complicated by the unpredictable nature of release dates, with many high-profile titles slated for 2025 facing potential delays.
The company's strategy involves focusing on established IPs and specific genres, as seen with the upcoming Little Nightmares 3. Muller believes that established franchises offer a degree of market security, though he acknowledges that even these are not immune to shifting player preferences. New IPs, however, are significantly more vulnerable to commercial failure due to their high development costs and the competitive market.
Muller identifies three key factors for future market growth: a positive macroeconomic environment, a robust platform install base, and the expansion into new, high-growth markets such as 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, suggesting that the market will experience growth in 2025 if the planned game releases materialize. The success of Elden Ring's expansion and upcoming titles like DRAGON BALL: Sparking! ZERO contribute to this positive outlook.
