Crowded Gaming Calendar Raises Concerns for New IP Releases

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 the release of new intellectual properties (IPs). His statements shed light on the evolving landscape of game development and release planning.

Financial Success Doesn't Guarantee Future Stability

While Bandai Namco enjoyed strong financial performance in 2024, driven by successes like Elden Ring's expansion and DRAGON BALL: Sparking! ZERO, Muller emphasizes the inherent uncertainties. He describes 2024 as a "year of stabilization" following industry-wide restructuring, but long-term challenges remain.

Rising Costs and Unreliable Release Dates

Muller underscores the increasing difficulty of launching new IPs. Soaring development costs and extended timelines necessitate careful budgeting and contingency planning for potential overruns and delays. The unpredictability of release dates further complicates matters. With major titles like Monster Hunter Wilds and Avowed slated for 2025, the actual release windows remain uncertain, impacting overall market predictions.

Prioritizing Established IPs and Specific Genres

Bandai Namco employs a "balanced risk approach," considering investment levels and the potential of both existing and new IPs. Muller suggests that focusing on established franchises, like the upcoming Little Nightmares 3, offers a degree of stability, leveraging existing fanbases. However, he acknowledges that even established IPs aren't immune to changing player preferences.

Market Growth Hinges on Multiple Factors

Muller identifies three key factors for future market growth: a positive macroeconomic environment, robust platform install bases, and the expansion into new, high-growth markets like Brazil, South America, and India. The upcoming Nintendo Switch 2 is viewed as a potential catalyst, but Bandai Namco maintains a platform-agnostic approach.

Optimism Despite Challenges

Despite the challenges, Muller remains optimistic, believing that a successful 2025 release lineup could significantly boost market growth. The success of new IPs, however, remains a significant challenge in the increasingly competitive gaming landscape.