Bandai Namco's European CEO, Arnaud Muller, highlights the evolving challenges publishers face in release planning. This article explores his statements and their implications for new IP releases.
There are Risks in Developing New IPs in a Crowded Market, Says Bandai Namco EU CEO
Rising Costs and Unpredictable Release Schedules Fuel Uncertainty
2024 has been a year of significant change for video game developers, including Bandai Namco. CEO Arnaud Muller describes a landscape of economic uncertainty and an increasingly congested release calendar. In a recent interview, he discussed the risks and opportunities facing publishers like Bandai Namco as they strategize for future releases.
Despite Bandai Namco's strong financial performance this year—driven by the success of Elden Ring's expansion, Shadow of the Erdtree, and the upcoming DRAGON BALL: Sparking! ZERO—Muller emphasizes the challenges ahead. While 2024 is considered a "year of stabilization" following industry layoffs and post-"COVID years" market growth, longer-term development and release planning present significant concerns.
In an interview with GameIndustry.biz, Muller revealed Bandai Namco's "balanced risk approach" to its game pipeline. This considers investment levels, the potential of existing IPs versus new game development, and market segment analysis. However, he acknowledges the shifting definition of "safe bets."
"Are there safe bets today in the market? I believe yes," Muller stated. "But… launching a new IP has become increasingly difficult." Rising development costs and extended timelines necessitate accounting for potential overspending and delays from the outset. Failure to do so, he warns, leads to "bad surprises."
Adding to the risk is the unpredictable nature of release schedules. With 2025 promising titles like Monster Hunter Wilds, Avowed, Ghost of Yōtei, and a potential Switch 2 launch, Muller questions the reliability of these release windows: "How many of these games will come on time?... We are no different to everybody else."
Muller suggests focusing on specific genres and established IPs, such as the upcoming Little Nightmares 3, offers a degree of protection. "We believe that… there is an audience that is interested in our portfolio, that is loyal to some of our IP, and that will be interested in buying our games," Muller explained.
While established franchises offer some security, Muller cautions against complacency. Player preferences evolve, and past successes aren't guaranteed in new market conditions. New IPs, with their high development costs and the competitive market, are particularly vulnerable to commercial failure. "Little Nightmares 3… has a fanbase that hopefully will be interested in playing that game, irrespective of whether GTA comes in 2025 or not," he added.
As previously stated, Muller characterized 2024 as a "year of stabilization." However, he identifies three key factors for returning the market to significant growth: a positive macroeconomic environment, a robust platform and install base, and new, high-growth potential markets like Brazil, South America, and India.
Regarding the impact of the upcoming Switch 2, Muller stated, "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 challenges, Muller remains optimistic. He believes that if the planned 2025 game releases materialize, "then obviously, I don’t see how the market wouldn’t grow next year."
