Life beyond Elden Ring: What’s Next for Bandai Namco Entertainment

Key insights

6 takeaways

01
Bandai Namco’s recent commercial success is anchored by FromSoftware titles, with the original Elden Ring exceeding 30 million units sold, the Shadow of the Erdtree expansion reaching 10 million, and the spin-off Elden Ring: Nightreign selling 5 million units.
02
Dragon Ball: Sparking! Zero has become the third best-selling game in Bandai Namco’s US history, achieving 5 million global sales since its 2024 release.
03
CEO Nao Udagawa announced a strategic pivot to expand internal development capabilities to create games based on Bandai Namco’s own intellectual properties, rather than relying primarily on third-party partnerships.
04
The company is actively seeking to revitalize its portfolio of 'legendary' legacy IPs through diverse avenues, including remakes, remasters, and cross-media collaborations.
05
Bandai Namco maintains a flexible, multi-platform business model that integrates game development, publishing, merchandise, and live events to maximize the value of its franchises.
06
The company attributes the global success of its Japan-centric titles to the high level of detail in Japanese game development and effective character representation, noting that international markets now account for roughly half of the participants at major industry events like the Tokyo Game Show.

Summary

This analysis examines the strategic direction of Bandai Namco Entertainment through an interview with CEO and President Nao Udagawa. The central thesis posits that the company’s long-term success relies on a fan-centric philosophy that integrates game development with broader intellectual property management, including merchandise, film, and live experiences. While the company has achieved record-breaking performance through high-profile partnerships, it is now shifting focus toward expanding its internal development capabilities to better leverage its own proprietary brands.

Key performance data highlights the massive commercial impact of the Elden Ring franchise, with the base game surpassing 30 million units sold, the Shadow of the Erdtree expansion reaching 10 million, and the spin-off Elden Ring: Nightreign achieving 5 million sales. Additionally, Dragon Ball: Sparking! Zero has emerged as a significant success, selling 5 million units globally and securing its position as the third best-selling title in the company’s U.S. history. These results underscore the continued global resonance of Japanese-developed titles, which benefit from meticulous attention to detail and strong character representation.

The company’s methodology involves a dual-track approach: maintaining deep, long-term collaborations with independent studios like FromSoftware while simultaneously revitalizing its portfolio of legacy intellectual properties. By treating IP as an integrated ecosystem rather than a single-medium product, the organization aims to maintain flexibility in a volatile industry. This strategy emphasizes a commitment to delivering content that meets fan expectations, regardless of the specific platform or format, ensuring the company remains resilient against market shifts.