According to Bandai Namco's European CEO, publishers face mounting difficulties when scheduling game releases. Discover Arnaud Muller's revealing comments about the implications for launching new intellectual properties.

Developing Original Game IPs Becomes Riskier in Competitive Market, Warns Bandai Namco Executive

Escalating Development Expenses and Unstable Launch Windows Pose Significant Challenges

The gaming industry continues undergoing significant transformations in 2024, with Bandai Namco actively navigating these changes. European CEO Arnaud Muller describes operating in an environment of economic volatility and an overcrowded release schedule. In a recent interview, Muller detailed both the risks and potential opportunities facing publishers during strategic planning for future titles.

Despite strong financial results from Elden Ring's Shadow of the Erdtree expansion and the anticipated DRAGON BALL: Sparking! ZERO, Muller emphasizes persistent challenges ahead. While 2024 marks an industry stabilization period following post-COVID adjustments and workforce reductions, fundamental concerns about game development timelines and market positioning remain.

Speaking with GameIndustry.biz, Muller explained Bandai Namco's "balanced risk" evaluation framework for its development pipeline. This approach considers investment requirements, production capabilities for new titles versus established franchises, and market positioning for original properties. However, Muller acknowledges changing definitions of secure investments in today's landscape.

"Certain franchises still represent safer investments, but introducing new intellectual properties grows increasingly difficult," Muller observed. Soaring development expenses and extended timelines now require publishers to anticipate potential budget overruns and delays from project inception. "Failure to account for these realities invites unpleasant surprises," Muller cautioned.

Compounding these challenges is the unpredictable nature of industry release calendars. While 2025 anticipates major titles like Monster Hunter Wilds and Avowed alongside Nintendo's potential Switch 2 launch, Muller questions schedule reliability: "How many will actually meet projected release dates? We face the same uncertainties as everyone else."

Muller notes that concentrating on specific genres and proven franchises like the forthcoming Little Nightmares 3 offers some market protection. "We maintain confidence in our audience's loyalty to certain properties and their continued interest in our portfolio," the executive stated.

Yet even established franchises carry uncertainties, Muller acknowledges, as player preferences constantly evolve. New intellectual properties face greater commercial risks due to development costs and market saturation. "Little Nightmares 3 benefits from an existing fanbase that may engage with it regardless of major franchise releases like GTA in 2025," Muller added.

Muller characterizes 2024 as an industry stabilization year, but identifies three critical requirements for meaningful market expansion: positive macroeconomic conditions, robust platform adoption rates, and emerging market opportunities in regions like South America and India.

Regarding potential benefits from Nintendo's next console, Muller stated: "We maintain platform neutrality, distributing games across all systems. Nintendo platforms remain important, and we'll ensure readiness for any new hardware."

Despite current challenges, Muller expresses optimism about industry prospects. "If the planned 2025 portfolio materializes as expected, market growth appears inevitable," he concluded.