Bandai Namco Emphasizes the Importance of Focusing on Core Expertise

Following the immense success of Elden Ring in 2022, Bandai Namco has been working to maintain its momentum in 2023. According to Arnaud Muller, CEO of Bandai Namco Europe, the company has been focusing on several key titles, including the upcoming DLC for Elden Ring, titled Shadow of the Erdtree, as well as Armored Core 6, which has been a major focus in the company's relationship with FromSoftware. The success of Armored Core 6 has been notable, with the game topping charts in the UK, US, and Europe, and sitting among the best-selling games of the year globally. However, Muller emphasizes that the company's success is not solely due to FromSoftware's titles, but also due to its diverse portfolio of games, including Naruto x Boruto Ultimate Ninja Storm Connections, Park Beyond, Sand Land, and Little Nightmares 3. One of the company's most anticipated titles is Tekken 8, which is expected to be a major hit. With over 50 million copies sold as an IP and 10 million copies sold of Tekken 7, the company has high expectations for the new game. Muller notes that the game will take the fighting genre to a new level, with stunning visuals and a high level of polish. Despite the company's success, its pipeline of Western games appears to be less busy than in previous years. Park Beyond is an already-released live title, and Little Nightmares 3 is planned for release in 2024. However, Muller notes that the company is working to increase its sales outside of Japan, with a goal of reaching 50% of total sales. To achieve this, the company is focusing on a combination of pushing its own IPs and titles from Japan to the overseas market, as well as creating new IPs in the Western market. The company is also working with its own studios, such as Limbic in Germany and Reflector in Canada, as well as studio partners like Supermassive, to develop new titles. Muller emphasizes that the company is looking for successful but careful initiatives, rather than investing large amounts of money in AAA games. In terms of the current market, Muller notes that it is quite challenging, with a few very successful IPs dominating the market. However, he believes that there is still opportunity for success, particularly in niche genres such as fighting games, Japanese RPGs, and games based on anime and manga. He notes that these genres have a very loyal fanbase, and that by providing high-quality games with different gameplay modes and content, companies can keep their fans engaged and achieve success. Muller also discusses the company's relationship with Supermassive, which has been working on the Little Nightmares series. He notes that the company has a long history of working with Supermassive, and that the developer's expertise in horror games and storytelling makes it a good fit for the IP. The company has also announced a podcast to explore the lore of the game and provide more content for fans. In terms of the wider economic climate, Muller notes that the industry has experienced a slowdown in growth, particularly in the wake of COVID. However, he believes that by managing portfolios and development costs carefully, companies can still achieve success. He also notes that the company has not been immune to the challenges facing the industry, with the shutdown of Gundam Evolution in July. However, he emphasizes that the company has big plans for the Gundam IP, particularly in the US and Europe. Finally, Muller discusses the importance of physical experiences, such as the company's new store in London, which showcases a wide range of Bandai Namco products, including games, toys, and figurines. He notes that the store provides a unique opportunity for fans to engage with the company's IPs and products, and that the UK is a key market for the company, with a growing interest in anime and manga.