Nexon, Netmarble, and NCSoft, which are the three major South Korean game developers and are also called “3N”, produced underachieving performance in 2019 due to various reasons such as lack of new games and reduction in loyalty. However, Pearl Abyss made its biggest sales in company’s history. While the 3N is leading the industry, Pearl Abyss is chasing right after them.
3N is planning to carry out major updates on their popular games and release new games this year. While Nexon is planning to distance itself from its competitors by focusing on its live service, Netmarble is looking to achieve “strong Netmarble” through new games and global expansion. NCSoft is going to focus on improving the degree of completion of sequels to Lineage series while maintaining its popularity through “Lineage M” and “Lineage 2M”.
Nexon was able to lead its domestic business without much trouble even though it had gone through many situations such as reorganization, improvement of the company’s structure, and failure of an attempt to sell the shares of NXC owned by Founder Kim Jung-ju of Nexon.
Nexon’s annual sales, operating profit, and net profit in 2019 were $2.27 billion (2.684 trillion KRW), $863 million (1.0208 trillion KRW), and $1.06 billion (1.2491 trillion KRW) annually. When the standard exchange rate (1079.9 won per 100 yen) is applied, its sales and operating profit fell by 2% and 4% respectively compared to that of the previous year. However, its net profit increased by 7%. When the fixed exchange rate (997 won per 100 yen) is applied, its sales and operating profit increased by 4% and 3% respectively. Because the value of yen becomes different due to uncertainties in the global economy such as the trade war between the U.S. and China, Nexon’s performances based on both exchange rates were made available to the public.
In 2020, Nexon is going to focus on its current live service and the development of major projects. Mobile MMORPG (Massively Multiplayer Online Role-Playing Game) called “V4” that was released in last November is bringing in more sales due to new IPs (Intellectual Property). Counter: Side is ranked in the top 10 of Google Play in just ten days removed from its release date. Its main steady sellers such as “Maple Story”, “FIFA Online 4”, and “Kartrider” will continue to maintain their steady services and look for continuous growth.
Nexon is planning to release “Dungeon & Fighter Mobile” in China and “Kartrider: Drift” globally. It is also preparing a multiplayer collaborative action game that is currently being developed by its Swedish subsidiary called Embark Studios AB. “The Kingdom of the Wings” is also a highly anticipated game in 2020.
Netmarble had a bit shaky performance in 2019 as it had to delay releasing new games due to changes in working conditions. Its sales and operating profit were $1.84 billion (2.1755 trillion KRW) and $170 million (201.7 billion KRW) respectively. Although it sales increased by 7.6%, its operating profit fell by 16.5%.
Netmarble is going to officially release a highly anticipated game called “A3: Still Alive” next month. A3: Still Alive will be the company’s second new game released in 2020 following “Magic: ManaStrike”. Netmarble is also going to release “Cross Worlds” that is based on STUDIO GHIBLI’s touch by end of this year. In addition to these games, Netmarble is going to work on “Seven Knights Switch Version”, “Seven Knights 2”, and “Seven Knights Revolution” based on the IPs of its major work called “Seven Knights”.
It is also going to focus on global expansion as it plans to release “Seven Deadly Sins” and “A3: Still Alive” globally in March. Also, it is planning to introduce “Blade and Soul Revolution” to the global market in April. “Marvel Realm of Champions” will be made available to the global market sometime in the first half of this year.
Netmarble has huge expectations on Seven Deadly Sins. Based on the positive performance in Japan, it is looking to carry the momentum in North America and Europe as well. During preliminary membership events that it held in the western part of the world, it had experienced number of members that well surpassed its expectation.
Netmarble’s performance in 2020 is expected to improve through acquisition of Coway more so than its performance in games. Acquisition of Coway, which is expected to create about $4.22 billion (5 trillion KRW) in consolidated sales, will be applied to its performance starting from the second quarter. After Netmarble acquired Coway, Netmarble’s liquidity has been worth $2.11 billion (2.5 trillion KRW). There is a chance that Netmarble will look to acquire new companies.
NCSoft’s sales, operating profit, and net profit in 2019 were $1.44 billion (1.7012 trillion KRW), $405 million (479 billion KRW), and $304 million (359.3 billion KRW) respectively. Its sales fell by 1% compared to 2018 while its operating profit and net profit fell by 22% and 15% respectively. Change in how it sees its sales affected its 2019 performance as it postponed 20% of sales from Lineage 2M to this quarter’s performance.
NCSoft is not going to rush releasing sequels. Based on steady profits from “Lineage 2M” and “Lineage M”, it is going to focus on improving the degree of completion of sequels. It is planning to strategically select release dates and dominate the market. It is currently working on “Aion 2”, “Blade and Soul 2”, “Project TL”, “Blade and Soul S”, and “Lineage W”.
Pearl Abyss made more than $422 million (500 billion KRW) in annual sales for the first time in its history. Its sales and operating profit were $455 million (538.9 billion KRW) and $130 million (153.8 billion KRW) respectively. Although its sales increased by 33%, its operating profit fell by 8%.
It is planning to focus on the development of new games and new technologies while maintaining the service of its main work called “Black Desert”. It is looking to improve its performance through services that can satisfy technologies such as game streaming and cross-platform play that are requested by the current generation.
It is expected to produce more advanced gaming experiences when it applies new technologies to its next games. It is currently working on “Shadow Arena”, “Red Desert”, “Plan 8”, and “DokeV”. Excluding Shadow Arena, other games are based on Pearl Abyss’ next engine. This engine has higher degree of understanding and allows updates to take place easily. It has also prepared an environment that can satisfy cross-platform play and streaming play.
Pearl Abyss is going to raise the degree of completion of Red Desert and DokeV to the level where it can test them sometime this year. It is planning to provide additional information during “E3”, which is one of the world’s biggest video game expo that will be held in Los Angeles in June.
Pearl Abyss is planning to make Shadow Arena available to users sometime in the first half. Shadow Arena is a game based on a new genre that applies close combat to battle royal. Pearl Abyss has gathered reactions from Shadow Arena’s users through two tests. It is planning to conduct global tests starting from the 27th and examine whether Shadow Arena can be a global game. Shadow Arena is expected to lower the level of dependence Pearl Abyss has on Black Desert.
Pearl Abyss is currently arranging its schedule in order to release “EVE Echose”, which is co-developed by its subsidiary called CCP Games and NetEase, in China.
Staff Reporter Lee, Hyunsoo | hsool@etnews.com