Bandai Namco CEO: '2024 Is The Year Of Stabilization' For Gaming Industry

Arnaud Muller, the European CEO of Bandai Namco Holdings ADR NCBDY, is optimistic about the video game industry despite the significant upheaval over the past two years, with an estimated 20,000 layoffs and numerous studio closures.

“I would call 2024 the year of stabilisation,” Muller told GamesIndustry.biz at Gamescom in Cologne, Germany. “The industry has gone from double digit growth during the COVID years to some far more difficult times and what I would call a market correction in 2022 and 2023. The market is going to grow again and the challenges that we face as an industry, hopefully they’re behind us.”

Gamescom, a five-day industry event, wrapped on Sunday, Aug. 25.

See Also: Video Game Spending Jumps 10% In July 2024, ‘2025 Growth Potential Is Significant’: Report

Strategic Diversity And Cautious M&A Propel Bandai Namco's Success

Bandai Namco reported a 56% increase in profits during the first quarter of the fiscal year 2025, driven largely by the successful launch of the Elden Ring expansion, Shadow of the Erdtree.

One of the most notable aspects of Bandai Namco’s recent success is its ability to avoid the widespread layoffs that have plagued other companies in the industry. Muller attributed this to the company’s diverse business model and prudent financial strategies.

Moreover, unlike some of its peers, Bandai Namco did not heavily invest during the pandemic years, choosing instead to take a cautious approach to mergers and acquisitions.

“We don’t rely on one or two products, and we don’t rely only on the video games business,” Muller explained. “We have a lot of IPs we own and we partner with licensors, which enables us to have successes and some challenges as well.”

This diversity, coupled with a conservative approach to M&A during a time when valuations were often inflated, has helped Bandai Namco maintain stability while others have struggled. “We weren’t as [excessive] at the time, and therefore we weren’t as affected as some of the other players. So it’s relatively stable,” Muller noted.

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Image credits: Michael Vi on Shutterstock.