Bandai Namco Predicts 2024 as a Year of Stability

The video game industry has experienced significant turmoil over the past two years, with an estimated 20,000 job losses and numerous studio closures. However, Arnaud Muller, the European CEO of Bandai Namco, is optimistic that the industry will show signs of recovery by the end of the year. In an interview at Gamescom in Cologne, Muller expressed confidence in the company's solid position despite the challenging market conditions. Bandai Namco has reported record sales for its latest financial year, and the first quarter of its current year has gotten off to a strong start thanks to the release of the Elden Ring expansion, Shadow of the Erdtree. The company aims to maintain this momentum as long as possible while the industry continues to navigate difficult times. Muller referred to 2024 as the 'year of stabilisation', following a period of double-digit growth during the COVID-19 pandemic, which was then followed by a market correction in 2022 and 2023. He believes the industry will experience growth again, and the challenges it currently faces will soon be overcome. Bandai Namco is no exception, with the company examining its portfolio for the next three to six years, up to 2030, and identifying numerous opportunities for growth from its own IPs and distribution partnerships. Unlike some other publishers, Japanese companies like Bandai Namco have generally avoided large-scale layoffs, which Muller attributes to the diversity of the company's portfolio and other structural factors that distinguish it from its peers. The company's ability to weather the industry's turbulence is due to its prudent approach to mergers and acquisitions during the COVID-19 pandemic, avoiding excessive investments that have affected other publishers. A full interview with Muller will be published in the coming weeks.