Netmarble Games is planning to become a global mobile game company through its ‘Lineage 2 Revolution’. It is estimated that its sales will surpass $2.23 billion (2.50 trillion KRW) in 2017 according to current trend. It is also expected that Netmarble Games and Nexon will compete against one another more fiercely in order to become the top mobile game company with top sales.
Netmarble Games is going to release Lineage 2 Revolution in 11 foreign countries such as Taiwan, Hong Kong, Macao, Singapore, Brunei, Cambodia, Laos, Malaysia, Myanmar, Philippines, and Thailand on the 14th of June and is planning to provide its mobile game services in Japanese markets in third quarter. It is expecting to be issued a license (approval for distribution of products in China) during second half of this year from Chinese Government which is seen as the biggest mobile game market. Because new South Korean Government is trying to solve diplomatic conflicts with Chinese Government due to placement of THAAD (Terminal High Altitude Area Defense), there is a high chance that Netmarble Games will be able to release its game in Chinese Government by end of this year.
Netmarble Games is going to develop separate versions for big markets such as China and Japan. It has worked with Tencent, which is a Chinese distributor, and has raised possibility of success in Chinese market. Netmarble Games and Tencent carried out tests for Chinese version of Lineage 2 Revolution in April and has finished preparing to release it in Chinese market.
In May, Netmarble Games recruited Jeon Dong-hae, who used to be the CEO of Shanda Games and Identity Mobile, as the vice-president who will oversee Chinese business.
Along with recruiting Vice-President Jeon, Netmarble Games establishes Chinese business headquarters and has started running it. There are 10 people working for its Chinese business headquarters and it is responsible for communicating with Tencent regarding Lineage 2 Revolution and examining potential of Netmarble Games’ new games in Chinese market.
Netmarble Games made $612 million (687.5 billion KRW) and $103 million (115.5 billion KRW) in sales and net profit respectively in first quarter of this year. It is understood that it made half of its sales from Lineage 2 Revolution. Although sales of Lineage 2 Revolution was somewhat reduced in second quarter, it is expected that this downward trend will be made up through global release of Lineage 2 Revolution in second half of this year.
Nexon made $674 million (757 billion KRW) and $179 million (201.5 billion KRW) in sales and net profit respectively in first quarter of this year. It made positive performance through increase in sales of ‘Dungeon Fighter’, which is ran in Chinese market, due to Chinese New Year.
Stock firms estimate that Netmarble Games’ sales in 2017 will be around $2.23 billion (2.50 trillion KRW). KTB Investment & Securities Co., Ltd. is estimating that Netmarble Games will make about $2.23 billion (2.50 trillion KRW) this year. eBEST Investment & Securities Co., Ltd. and Mirae Asset Daewoo Securities Co., Ltd. are estimating that Netmarble Games will make about $2.40 billion (2.70 trillion KRW) and $2.05 billion (2.30 trillion KRW) this year respectively.
These stock firms applied downward trend of sales of Lineage 2 Revolution in South Korea and saw potential sales of Lineage 2 Revolution in big markets such as China and Japan conservatively.
Staff Reporter Kim, Siso | siso@etnews.com
