Bandai Namco Flags Risk to New IP Amidst Busy Release Cadence

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 shown some stabilization following industry-wide adjustments, the long-term outlook for new intellectual property (IP) releases presents significant concerns.

Muller emphasizes the escalating development costs and unpredictable release timelines as major risk factors. The rising financial investment required, coupled with potential delays, creates significant uncertainty. He stresses the importance of proactively accounting for these potential overruns to avoid unpleasant surprises.

The crowded 2025 release calendar, featuring anticipated titles like Monster Hunter Wilds and Avowed, further complicates the situation. Muller questions the likelihood of all these games launching as scheduled, highlighting the inherent unpredictability within the industry.

Bandai Namco's strategy prioritizes a balanced risk approach, considering investment levels and the potential of both existing and new IPs. While established franchises like Little Nightmares 3 offer a degree of safety, Muller acknowledges that even these are not immune to shifting player preferences. New IPs, however, face significantly higher risks due to their substantial development costs and the competitive market.

Muller identifies three key factors for future market growth: a positive macroeconomic environment, strong platform install bases, and the expansion into new, high-growth markets such as Brazil, South America, and India. He also emphasizes 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 lineup for the company will contribute to overall market growth.