Bandai Namco's Resilience in a Shifting Landscape: Navigating Challenges and Opportunities

Bandai Namco, the renowned Japanese video game publisher, has been navigating the turbulent waters of the industry with remarkable agility. Despite the widespread challenges facing the sector, the company has managed to maintain a solid performance, driven by the success of its flagship title, Elden Ring, and its upcoming releases. In an exclusive interview, Arnaud Muller, the European CEO of Bandai Namco, shares insights into the company's strategic decision-making, the evolving landscape, and the factors shaping the future of the gaming industry.

Bandai Namco's Resilience Amid Industry Upheaval

Balancing Risk and Innovation

Bandai Namco's approach to its games pipeline reflects a careful balance between safe bets and calculated risks. The company engages in frequent editorial and portfolio discussions, both at the Japanese headquarters and within its European organizations, to evaluate the potential of existing IPs and the viability of new IP introductions. Muller acknowledges that launching a new IP has become increasingly challenging, with the rising costs and development timelines posing significant hurdles. To mitigate these risks, Bandai Namco factors in the potential for overspending and delays, ensuring that it is prepared for any unexpected challenges.The company's portfolio strategy aims to strike a balance between risk-taking and innovation, while also leveraging its established and popular IPs. Muller emphasizes the importance of understanding the audience and the loyalty associated with certain IPs, which can provide a reliable foundation for the company's offerings, even in the face of competition from highly anticipated titles from other major publishers.

Navigating a Crowded Release Slate

The impending release of several high-profile games in 2025, including the likes of Grand Theft Auto 6, a new Borderlands, Mafia, Death Stranding, and Monster Hunter, presents both opportunities and challenges for Bandai Namco. Muller acknowledges that these titles will compete for the same player attention and spending, but he remains confident in the company's ability to cater to its dedicated fan base and the unique appeal of its own IPs.Bandai Namco's strategy is not to make decisions based solely on the release schedules of its competitors. Instead, the company focuses on ensuring that its games are of the highest quality and resonate with their target audience. Muller emphasizes the importance of understanding the reliability and release timelines of these anticipated titles, as delays and unforeseen challenges can often arise, creating opportunities for Bandai Namco to capitalize on.

Embracing New Markets and Platforms

Bandai Namco's approach to platform agnosticism has been a key strength, as the company aims to make its games available across a wide range of platforms, including the Nintendo Switch. Muller acknowledges the significance of the upcoming Switch 2 console, stating that Bandai Namco will be ready to invest in the new platform, as it has consistently found success in delivering its IPs to Nintendo's ecosystem.Beyond traditional platforms, Muller also highlights the potential for growth in emerging markets, such as Brazil, South America, and India, where the video game industry is experiencing significant expansion. Bandai Namco's diverse portfolio and adaptability to different market dynamics position the company to capitalize on these emerging opportunities, further strengthening its resilience in the face of industry-wide challenges.

Weathering the Storm: Macroeconomic Factors and Industry Stabilization

Muller's assessment of the industry's future trajectory points to a "year of stabilization" in 2024, followed by a stronger 2025. He emphasizes the importance of the right macroeconomic environment, as well as the availability of the right platforms and install bases, as key factors that will drive the industry's return to significant growth.The company's confidence in the industry's potential is bolstered by the robust pipeline of anticipated releases in 2025, which Muller believes will contribute to the overall market expansion, provided that these titles materialize as planned. Bandai Namco's diversified approach, combined with its ability to adapt to changing market dynamics, positions the company as a resilient player in the ever-evolving gaming landscape.