Bandai Namco Weighs the Risks and Rewards of Game Releases

Following a strong start to 2024, fueled by the successful launch of Elden Ring's Shadow of the Erdtree expansion, Bandai Namco is poised to exceed its initial forecasts. In a conversation with GamesIndustry.biz, European CEO Arnaud Muller expressed his optimism about the company's prospects, particularly with the upcoming release of Dragon Ball Sparking Zero, which he believes will be instrumental in achieving the company's full-year targets. However, the increasingly crowded release schedule for 2025 presents new challenges for publishers like Bandai Namco. Muller emphasized the importance of striking a balance between risk and innovation, acknowledging that the rising costs and prolonged development times of new IPs have introduced a new risk paradigm that must be factored into decision-making processes. When evaluating the company's games pipeline, Muller explained that a balanced approach is taken, considering factors such as investment levels, production capabilities, and the potential of both existing and new IPs. He noted that while some IPs still have a strong following, launching new ones has become more difficult due to increased development costs and time. The need to balance the portfolio between risks and innovation, as well as safer bets, is crucial. Muller also addressed the impact of other companies' releases on Bandai Namco's decision-making, questioning the reliability of release windows for highly anticipated games like Grand Theft Auto 6 and the potential Switch 2. He emphasized that the company focuses on titles that don't directly compete with these games in terms of genre and IP, and that there is a loyal audience interested in Bandai Namco's portfolio. Regarding the industry's return to significant growth, Muller cited the need for a favorable macroeconomic environment, the right platforms, and a strong install base. The introduction of new platforms, such as the potential Switch 2, is expected to benefit Bandai Namco, as the company is platform-agnostic and has had success on the Switch. With a solid lineup of games, including Little Nightmares 3, and a growing presence in emerging markets like Brazil, South America, and India, Bandai Namco is well-positioned for growth in the coming year.