Crowd Pushes Bandai Namco to Urge Caution on New IPs

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

Bandai Namco's European CEO, Arnaud Muller, recently highlighted the significant challenges publishers face in today's video game market, particularly concerning the release of new intellectual properties (IPs). His comments, shared in an interview with GameIndustry.biz, underscore the rising costs and unpredictable release schedules impacting the industry.

While Bandai Namco enjoyed success in 2024 with titles like Elden Ring's expansion and DRAGON BALL: Sparking! ZERO, Muller emphasized the inherent uncertainties in game development and release planning. He described the current market as a "year of stabilization" following industry-wide restructuring, but warned of long-term challenges.

Muller explained Bandai Namco's strategy as a "balanced risk approach," weighing investment levels, the potential of existing IPs versus new ones, and market segment analysis. However, he acknowledged the shifting landscape of "safe bets," stating that launching new IPs has become increasingly difficult. Escalating development costs and extended timelines necessitate careful budgeting and contingency planning for potential overspending and delays.

The unpredictable nature of release dates further complicates matters. With anticipated 2025 releases like Monster Hunter Wilds and Avowed, Muller questioned the reliability of projected launch windows, emphasizing the industry-wide uncertainty.

Muller suggested that focusing on established IPs, such as the upcoming Little Nightmares 3, offers a degree of protection, leveraging existing fanbases. However, he cautioned that even established franchises aren't immune to market shifts and evolving player preferences. New IPs, with their substantial development costs and the competitive market, face a higher risk of commercial failure.

Muller identified three key factors for future market growth: a favorable macroeconomic environment, strong platform install bases, and expansion into new, high-growth markets like Brazil, South America, and India. Regarding the upcoming Nintendo Switch 2, he emphasized Bandai Namco's platform-agnostic approach, highlighting their readiness to invest in the new console.

Despite these challenges, Muller expressed optimism for the future, suggesting that a successful 2025 release slate could drive significant market growth. His statements highlight the complexities and risks inherent in the current video game market, particularly for new IPs.