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

Bandai Namco Flags Increased Risk 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 new IP releases. While 2024 has seen relative stabilization after industry-wide adjustments, long-term concerns remain.

Muller points to escalating development costs and unpredictable release dates as major risk factors. The increased investment required, coupled with potential delays, creates uncertainty and the possibility of exceeding budgets. He emphasizes the need for a "balanced risk approach," carefully considering investment levels and the potential of both existing and new IPs.

The 2025 release calendar, featuring titles like Monster Hunter Wilds and Avowed, raises further concerns about the reliability of projected launch windows. Muller acknowledges the inherent uncertainty, stating that delays are a possibility for many games.

Focusing on established IPs, like the upcoming Little Nightmares 3, offers a degree of security, Muller suggests. These franchises benefit from existing fanbases, providing a more predictable market response. However, he cautions that even established IPs are not immune to shifting player preferences. New IPs, on the other hand, face a higher risk of commercial failure due to the substantial investment and competitive market.

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 like Brazil, South America, and India. He also emphasizes Bandai Namco's platform-agnostic approach, highlighting their readiness to invest in the upcoming Nintendo Switch 2.

Despite the challenges, Muller expresses optimism, believing that a successful 2025 release lineup could drive significant market growth.