Bandai Namco Warns of Risks for New IPs Due to Crowded Release Schedules

Bandai Namco Flags Risks for New IPs Amidst Crowded Release Calendar

Bandai Namco Europe's CEO, Arnaud Muller, recently highlighted the significant challenges publishers face in navigating the current video game market, particularly concerning the release of new intellectual properties (IPs). His statements underscore the increasing risks associated with new IP development in a saturated market.

Economic Uncertainty and Scheduling Challenges

Muller points to a confluence of factors contributing to this heightened risk. The rising costs of game development, coupled with unpredictable release schedules, create significant uncertainty. While 2024 has seen relative stabilization after industry-wide restructuring and post-pandemic market adjustments, long-term challenges remain.

Bandai Namco employs a "balanced risk approach," carefully considering investment levels, existing IP potential, and market segment analysis. However, even with this strategy, Muller acknowledges the shifting landscape of "safe bets." Launching new IPs is increasingly difficult due to escalating development costs and extended timelines, potentially leading to budget overruns and delays.

The unpredictable nature of release dates further complicates matters. With numerous high-profile titles slated for 2025, including Monster Hunter Wilds, Avowed, and Ghost of Yōtei, the actual release windows remain uncertain. This uncertainty affects all publishers, including Bandai Namco.

Established IPs Offer Some Security, But Not Guaranteed Success

Muller suggests that focusing on specific genres and established IPs, like the upcoming Little Nightmares 3, offers a degree of protection. Loyal fanbases provide a more predictable market, mitigating some of the risks associated with new IPs. However, even established franchises are not immune to changing player preferences and market conditions.

Future Growth Hinges on Multiple Factors

Muller sees the industry's future growth dependent on a favorable macroeconomic climate, strong platform install bases, and the expansion into new, high-growth markets such as Brazil, South America, and India.

Bandai Namco's platform-agnostic approach ensures they remain prepared for opportunities presented by new consoles, such as the upcoming Nintendo Switch 2. Muller expresses optimism for 2025, believing a successful release of their planned portfolio will drive market growth.