Precarious NC, Nexon, Netmarble 'Top 3 Structure' [Buaeri's Game Dictionary]

From the left, Kim Jung-ju, founder of Nexon; Kim Taek-jin, founder of NC; Bang Jun-hyuk, founder of Netmarble

The term '3N' is essential for journalists covering the gaming industry. The 3N, derived from the initials of NCSoft, Nexon, and Netmarble, have long dominated the domestic gaming industry in all aspects, including revenue scale and market capitalization. It is almost unheard of to write an article about the gaming industry without using this term. However, with the emergence of new challengers recently, the dominance of these three giants is gradually becoming precarious.

NCSoft, Nexon, Netmarble (3N) Taste Bitterness

After continuing their strong performance last year, the 3N had to face a 'bitter taste' this year. All three companies experienced an 'earnings shock' in their second-quarter results. Netmarble saw the largest drop in operating profit, recording revenue of 577.2 billion KRW and operating profit of 16.2 billion KRW, down 15.8% and 80.2% respectively compared to the previous year.

NCSoft reported poor results for two consecutive quarters. After an earnings shock in the first quarter, NCSoft posted second-quarter revenue of 538.5 billion KRW and operating profit of 112.8 billion KRW. While revenue remained at the previous year's level, operating profit fell by 46%. The revenue decline of NCSoft's main income source, 'Lineage M,' continues. The mobile MMORPG 'Lineage M' recorded revenue of 134.1 billion KRW, down 16% year-on-year and 22% quarter-on-quarter. Since the third quarter of last year, Lineage M's revenue has been on a downward trend.

Nexon also recorded sluggish results this year due to the absence of new releases and a decline in overseas sales. Its second-quarter revenue was 573.3 billion KRW, and operating profit was 157.7 billion KRW, down 13% and 42% respectively from the previous year. Moreover, both NCSoft and Nexon faced 'growing pains' with users earlier this year. NCSoft endured a boycott by users dissatisfied with updates to Lineage M. Nexon faced protests from 'MapleStory' users over controversies surrounding probability-based items, leading to truck protests. As the situation escalated, CEO Lee Jung-heon personally apologized to manage the crisis.

Krafton Founder Jang Byung-gyu, Chairman of the Board

Kakao Games and Krafton (2K) Rapid Rise

The challengers threatening the 3N are Kakao Games and Krafton (2K). Kakao Games' new mobile MMORPG 'Odin: Valhalla Rising' has held the number one spot for over a month, surpassing the once-dominant Lineage M and Lineage 2M. Although Kakao Games did not achieve strong results this quarter due to the full impact of 'Odin,' released on June 29, being yet to be reflected, it is expected to grow rapidly from the third quarter onward. Securities firms predict Kakao Games' revenue will exceed 1 trillion KRW this year.

Krafton, which has consistently challenged the 3N, surpassed them in operating profit in the second quarter this year. Krafton recorded revenue of 459.3 billion KRW and operating profit of 174.2 billion KRW. 'Battlegrounds Mobile' achieved its highest-ever revenue. Krafton's global performance is particularly notable, with 94% of total revenue coming from overseas. The cumulative number of users for 'Battlegrounds Mobile India' has exceeded 46 million.

Retaking the Lead with New Releases?

Of course, the 3N will not remain idle. NCSoft, Netmarble, and Nexon are all preparing to launch new titles in the second half of the year, aiming to seize opportunities for a comeback. NCSoft will release 'Blade & Soul 2 (B&S2)' on the 26th, with CEO Kim Taek-jin personally leading development. Having had limited success overseas so far, NCSoft plans to globally launch 'Lineage W' within the year to seek new growth.

Nexon will also release a series of new titles starting with 'Konosuba Mobile' on the 19th, followed by 'KartRider: Drift' and 'Cutzpel.' On the 5th, Nexon held a media showcase unveiling seven new titles, including 'Project Magnum' and 'Project HP,' revealing an aggressive intellectual property (IP) development strategy.

Netmarble will launch the mobile RPG 'Marvel Future Revolution' in over 240 countries, excluding China and Vietnam, on the 25th. Netmarble plans to expand its global market presence through 'SpinX,' a social casino game company it recently acquired.

Editor's Note The goal of 'Game Dictionary' is to understand and clearly convey gaming-related issues every weekend. We always listen attentively to incidents and diverse voices arising in gaming. Any tips or information are always welcome.

This content was produced with the assistance of AI translation services.