Crowded Release Schedules Create Cautions for Bandai Namco's IP Debut

Bandai Namco Flags Growing Risks for New IPs Amidst Crowded Release Calendar

Bandai Namco's European CEO, Arnaud Muller, recently highlighted the increasing challenges publishers face in navigating the current video game market. While 2024 has seen relative stabilization after industry-wide adjustments, the long-term outlook presents significant hurdles, particularly for new intellectual properties (IPs).

Muller emphasizes the evolving landscape of "safe bets" in game development. While acknowledging the success of titles like Elden Ring's expansion and DRAGON BALL: Sparking! ZERO, he points to escalating development costs and unpredictable release timelines as major concerns. These factors necessitate a "balanced risk approach," carefully considering investment levels and the potential of both existing and new IPs.

The uncertainty surrounding release dates for major 2025 titles like Monster Hunter Wilds, Avowed, and Ghost of Yōtei further complicates the picture. Muller questions the reliability of projected launch windows, stating that Bandai Namco faces the same uncertainties as other publishers.

Focusing on established IPs, such as the upcoming Little Nightmares 3, offers a degree of security, leveraging existing fanbases. However, even established franchises are not immune to shifting player preferences and market dynamics. New IPs, with their substantial development costs, face a significantly higher risk of commercial failure in the competitive market.

Muller identifies three key factors for future market growth: a favorable 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, expressing readiness to invest in the upcoming Nintendo Switch 2.

Despite these challenges, Muller remains optimistic, believing that a successful 2025 release slate will contribute to significant market growth. The overall message underscores the increasing complexity and risk involved in bringing new IPs to market, demanding a more cautious and strategic approach from publishers.