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

Bandai Namco CEO Highlights Risks of New IPs in Crowded Market

Bandai Namco's European CEO, Arnaud Muller, recently discussed the challenges facing game publishers, particularly concerning the development and release of new intellectual properties (IPs). While the company enjoyed success in 2024 with titles like Elden Ring's expansion and DRAGON BALL: Sparking! ZERO, Muller emphasizes the increasing difficulties in launching new IPs.

Muller points to rising development costs and unpredictable release schedules as major sources of uncertainty. The extended timelines and potential for cost overruns necessitate a cautious approach. He highlights the difficulty in predicting the success of new IPs in an already saturated market.

Bandai Namco employs a "balanced risk approach," considering investment levels and the potential of both existing and new IPs. However, Muller acknowledges that even established franchises aren't guaranteed success due to evolving player preferences. He cites Little Nightmares 3 as an example of leveraging an existing fanbase to mitigate risk.

The unpredictable release dates of numerous high-profile games slated for 2025 (including Monster Hunter Wilds, Avowed, and Ghost of Yōtei) further complicate planning. Muller questions whether these titles will launch as scheduled, emphasizing the industry-wide uncertainty.

Muller identifies three key factors for future market growth: a positive macroeconomic environment, a strong platform install base, and the expansion into new, high-growth markets such as Brazil, South America, and India. He also notes Bandai Namco's platform-agnostic approach, highlighting their readiness to invest in the upcoming Nintendo Switch 2.

Despite the challenges, Muller remains optimistic, believing that a successful 2025 release slate for the company and the industry as a whole will drive market growth.