New IP Warning from Bandai Namco Amidst Release Schedule Concerns

Bandai Namco Flags Rising 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 Bandai Namco enjoys success with titles like Elden Ring's expansion and DRAGON BALL: Sparking! ZERO, the escalating costs and unpredictable timelines associated with new IP development pose considerable risk. He stresses the importance of accounting for potential budget overruns and delays from the project's inception to avoid unpleasant surprises.

The uncertainty extends to release schedules. With a packed 2025 lineup including high-profile titles, Muller questions the likelihood of all games launching as planned, emphasizing the shared uncertainty across the industry.

Muller advocates for a balanced approach, prioritizing established IPs like the upcoming Little Nightmares 3, which benefits from a pre-existing fanbase. However, he acknowledges that even established franchises aren't immune to shifting player preferences. New IPs, burdened by substantial development costs and market saturation, are particularly vulnerable to commercial failure.

For future market growth, Muller identifies three key factors: a positive macroeconomic environment, robust platform install bases, and the penetration of new, high-growth markets such as 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, suggesting that a successful 2025 release pipeline for the company would contribute significantly to overall market growth.