Bandai Namco Alerts on New IP Risks Amid Packed Release Calendars

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According to Bandai Namco’s European CEO, publishers are facing new challenges when it comes to planning releases. Read on to learn more about Arnaud Muller’s statements and their implications for new IP development.

Developing New IPs in a Crowded Market Poses Serious Risks, Warns Bandai Namco EU CEO

Rising Costs and Unpredictable Release Calendars Create Industry Uncertainty

The video game industry continues to evolve at a rapid pace, and 2024 has proven to be a pivotal year for developers and publishers alike. Bandai Namco, a major player in the global gaming space, finds itself navigating a complex landscape marked by economic instability and an increasingly packed release schedule.

Arnaud Muller, Bandai Namco's European CEO, recently shared insights into how these conditions affect the company's strategy regarding new intellectual property (IP) development. Despite strong financial results driven largely by the success of Elden Ring: Shadow of the Erdtree and the anticipated launch of DRAGON BALL: Sparking! ZERO, Muller emphasized that long-term planning remains a challenge.

In an interview with GameIndustry.biz, Muller explained that Bandai Namco takes a "balanced risk approach" when evaluating its development pipeline. This includes assessing investment levels, internal production capabilities, and the market potential of both existing and new IPs. However, he pointed out that the definition of a "safe bet" is shifting.

“Are there safe bets today in the market? I believe yes,” Muller stated. “But launching a new IP has become more and more difficult.”

He noted that rising development costs and unpredictable timelines require careful budgeting from the outset. Failing to account for overruns can lead to significant setbacks. “You’re in for some bad surprises,” he warned.

Another growing concern is the volatility of release schedules. With 2025 expected to feature major titles like Monster Hunter Wilds, Avowed, Ghost of Yōtei, and potentially a new Nintendo console, Muller questioned whether these games will actually hit their planned windows. “How many of these games will come on time?... We are no different to everybody else,” he said.

To mitigate risks, Bandai Namco is focusing on genres and franchises that already have a dedicated fanbase. Titles like Little Nightmares 3 offer a level of predictability in an otherwise volatile market. “We believe there is an audience that is interested in our portfolio, loyal to some of our IP, and will want to buy our games,” Muller explained.

While established franchises may offer some security, they too must evolve to meet changing consumer expectations. New IPs, however, face a much higher bar. With high development costs and intense competition, the chances of commercial failure are significantly greater. As Muller put it, “Little Nightmares 3… has a fanbase that hopefully will be interested in playing that game, irrespective of whether GTA comes in 2025 or not.”

Muller described 2024 as a “year of stabilization” following the turbulence caused by layoffs and post-pandemic market shifts. He believes sustained growth will depend on three key factors: a stable macroeconomic environment, a robust platform and install base, and expansion into emerging markets like Brazil, South America, and India.

When asked about the potential impact of the upcoming Switch 2, Muller responded, “We’re platform agnostic. Our games are mostly available on all platforms, and Switch has always been an important platform to us… Whenever a new console comes out from Nintendo, we’ll be ready to invest there.”

Despite the current uncertainties, Muller remains optimistic about the future. If the full slate of 2025 titles launches successfully, he believes the gaming market is poised for renewed growth. “Then obviously, I don’t see how the market wouldn’t grow next year.”

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