Spotlight on the Korean Gaming Industry – Part 2
*Source: Daily Consumer Economic News (http://www.dailycnc.com)
Following the previous Part 1, which delved into the plans of major Korean game companies KRAFTON, Nexon, and Netmarble, Part 2 continues to explore the evolving strategies and ambitious lineups of NCSoft, SHIFTUP, and Pearl Abyss. Let’s examine how these companies are poised to shape the gaming landscape in 2025.
NCSoft: Reshaping Its Legacy Amidst Challenges
A Year of Financial Losses and Strategic Changes
NCSoft, long regarded as a polarizing figure in Korea’s gaming industry, experienced a challenging 2024. Known for its legendary title Lineage, the company faced criticism for its monetization strategies in subsequent games. Despite these challenges, NCSoft has been striving to revamp its identity, with 2024 marking the release of innovative titles like Throne and Liberty, HoYeon, and Battle Crush.
The financial impact of these new games, however, was mixed. Q2 revenue fell to KRW 368.9 billion, with an operating profit of KRW 8.8 billion—a significant drop compared to both the previous quarter and the same period in 2023. Q3 saw a slight revenue increase to KRW 401.9 billion, but the company reported an operating loss of KRW 14.3 billion, its first quarterly loss in 12 years.
Preparing for a Bold 2025
To reverse this trend, NCSoft is focusing on structural changes and a robust lineup of five new games. Highlights include:
- Aion 2 – The long-awaited sequel to ‘Aion: Tower of Eternity’, 17 years after the original’s debut.
- LLL – A science fiction shooter set in an alternate historical universe, blending dystopian Seoul with Byzantine and futuristic elements.
- Tactan: Knights of the Gods – A unique strategy game combining RTS and MMORPG elements with NCSoft’s signature high-quality graphics.
Other upcoming projects include Breakers, an original IP developed by Big Game Studio, and a new title leveraging existing IPs. NCSoft’s commitment to innovation and restructuring signals an ambitious path forward for 2025.
SHIFTUP: Sustaining Growth Through Expansions
The Rise of SHIFTUP, Powered by ‘Stellar Blade’
SHIFTUP emerged as a major force in 2024, driven by the global success of Stellar Blade. The company’s stellar debut on the KOSPI in July 2024 solidified its status, with its valuation briefly surpassing NCSoft to become the third-largest gaming company by market cap.
Q2 results showed a revenue of KRW 65.2 billion and an operating profit of KRW 45.1 billion, up 65.4% and 49% year-over-year, respectively. These figures were bolstered by Victory Goddess: NIKKE, which also contributed to impressive Q3 performance, with revenue reaching KRW 58 billion.
2025: A Year of Expansions
While no new titles are planned for 2025, SHIFTUP is focusing on expanding existing successes:
- Stellar Blade will launch a PC version, extending its reach beyond PlayStation exclusivity.
- Victory Goddess: NIKKE is preparing for its Chinese release in the first half of 2025, aiming to capitalize on the region’s massive gaming market.
Through regular updates, collaborations, and platform expansions, SHIFTUP is poised to sustain growth and enhance its global presence.
Pearl Abyss: Betting on ‘Crimson Desert’
A Period of Stagnation
Despite its reputation for innovative MMORPGs like Black Desert, Pearl Abyss has struggled to achieve significant growth in recent years. In 2024, Q2 revenue reached KRW 81.8 billion, with Q3 seeing a slight decline to KRW 79.5 billion. Operating losses and increased marketing expenses for upcoming titles weighed heavily on its finances.
The Spotlight on ‘Crimson Desert’
Pearl Abyss’s hopes rest on Crimson Desert, set to launch in Q4 2025. Originally unveiled in 2019, the game promises an immersive open-world experience blending RPG and action elements. Recent demos at events like Gamescom and G-STAR have reignited anticipation, cementing its status as one of the year’s most eagerly awaited titles.
Other projects, such as DokeV and Plan 8, remain in limbo, with little development news fueling concerns. Pearl Abyss’s singular focus on Crimson Desert reflects its commitment to delivering a high-quality experience, though the stakes are high for the company’s future.
