Bandai Namco Focuses on Expertise Amidst Market Challenges

Following a remarkable 2022 driven by Elden Ring's massive success, Bandai Namco aimed to sustain its momentum in 2023. According to Arnaud Muller, CEO of Bandai Namco Europe, the company's strategy involves focusing on its core expertise and nurturing its existing IPs. The upcoming release of Elden Ring's DLC, Shadow of the Erdtree, and the success of Armored Core 6, are key to this approach. Muller highlights the diverse portfolio of games, including Naruto x Boruto Ultimate Ninja Storm Connections, Park Beyond, Sand Land, and Little Nightmares 3, showcasing the company's commitment to variety. Furthermore, the highly anticipated Tekken 8 is expected to elevate the fighting genre to new heights, with its impressive visuals and polished gameplay. Bandai Namco's objective is to increase its sales outside of Japan, currently at 25%, to 50%, through a combination of its own IPs, sales and marketing efforts, and strategic partnerships with Western studios. The company is adopting a cautious approach, prioritizing smaller, secure successes over large-scale investments in new AAA titles. Muller emphasizes the importance of addressing the company's loyal fanbase and providing high-quality games that meet their expectations. He also notes that the current market is challenging, with a polarized audience and intense competition, but believes that focusing on core expertise and nurturing existing IPs can lead to success. The company's relationship with Supermassive Games, the developer of Little Nightmares 3, is a prime example of this strategy. Bandai Namco is also exploring new opportunities, such as the opening of a flagship store in London, to connect with fans and showcase its diverse range of products. Despite the challenges, Muller remains optimistic about the company's prospects, citing the growth potential in specific genres, such as fighting games and Japanese RPGs, and the loyal fanbase that drives their success.