Bandai Namco has declared that 2024 is set to be a year focused on stabilization.
In the gaming industry, which has seen approximately 20,000 layoffs and several studio closures over the past two years, there is anticipation for signs of recovery. Arnaud Muller, CEO of Bandai Namco Europe, is optimistic that such indicators will become evident by the year's end.
During an interview at Gamescom in Cologne, Muller expressed that Bandai Namco is in a strong position despite broader industry challenges. The company achieved record sales in its last fiscal year and is off to a promising start this year, bolstered by the successful launch of the Elden Ring expansion, Shadow of the Erdtree. Muller emphasized the importance of maintaining this momentum amid ongoing industry instability.
He described 2024 as potentially being "the year of stabilisation" as the sector transitions from the robust growth experienced during the COVID-19 pandemic to a phase of market correction in 2022 and 2023. Muller is hopeful that the market will rebound and the current challenges will recede. Bandai Namco is planning for the future, with a focus on opportunities for growth through their intellectual properties and distribution partnerships, looking ahead as far as 2030.
Interestingly, record financial performance does not necessarily preclude layoffs, as other companies have reduced their workforce despite positive results. However, Japanese companies like Bandai Namco have largely avoided large-scale layoffs, something Muller attributes to the unique composition of their portfolio and a more diverse business structure.
Muller explained that Bandai Namco's resilience in these turbulent times is due to their reliance on a wide range of products rather than a few blockbuster titles, coupled with a broader business strategy beyond just video games. He also mentioned that the company was cautious with mergers and acquisitions during the pandemic, a period when others were making high-stake investments. This prudence helped Bandai Namco remain stable compared to its peers.
For a more in-depth conversation with Muller, the full interview will be available in the coming weeks.
