Bandai Namco's European CEO, Arnaud Muller, recently voiced concerns about the rising risks associated with launching new intellectual properties (IPs) in the increasingly crowded video game market. His statements highlight the challenges publishers face in navigating unpredictable release schedules and escalating development costs.

Muller's comments, shared in an interview with GameIndustry.biz, come despite Bandai Namco's strong 2024 performance, fueled by successes like Elden Ring's expansion and DRAGON BALL: Sparking! ZERO. However, he emphasizes the long-term uncertainties impacting release planning.

Bandai Namco employs a "balanced risk approach," considering investment levels, existing IP potential, and market segment analysis. While Muller acknowledges "safe bets" still exist, he stresses the heightened difficulty of successfully launching new IPs. Soaring development costs and extended timelines necessitate proactive planning to mitigate potential overspending and delays.

The unpredictable nature of release dates further complicates matters. The anticipated 2025 releases of titles like Monster Hunter Wilds and Avowed raise questions about the reliability of projected launch windows, a concern shared across the industry.

Muller suggests that focusing on established IPs, such as the upcoming Little Nightmares 3, offers a degree of protection. He highlights the loyalty of existing fanbases, providing a more predictable audience compared to the inherent risk of introducing entirely new IPs to a competitive market. Even established franchises, however, are not immune to evolving player preferences.

Muller identifies three key factors for future market growth: a favorable macroeconomic environment, a robust platform and install base, and the expansion into new, high-growth markets such as Brazil, South America, and India. He also confirms Bandai Namco's platform-agnostic approach, highlighting their readiness to invest in the upcoming Nintendo Switch 2.

Despite the challenges, Muller expresses optimism for 2025, predicting market growth if the planned game releases materialize. His comments underscore the significant risks and strategic considerations involved in navigating the current video game landscape.