The 3N Bow Their Heads... The 2K Charge Forward

Controversy Over Excessive Charging at NC
Double-Digit Decline in Revenue and Operating Profit
Nexon and Netmarble Also Show Disappointing Results

Kakao Games' 'Quantum Jump'
Krafton Also Reports Strong Performance
2K Advances, Strengthening Global Offensive

In this year's third-quarter earnings, the fortunes of the 3N (NCSoft, Nexon, Netmarble) and 2K (Kakao Games, Krafton) are expected to diverge. Analysts suggest that the rise of 2K has triggered a major reshuffling in the gaming industry. With the largest domestic game exhibition 'G-Star 2021' scheduled for next month, the 3N have all declared their simultaneous absence, turning the event into a stage for 2K.

3N Slump... Determined to Revive with New Releases

According to financial analysis firm FnGuide on the 29th, NCSoft is expected to record third-quarter sales of 505.2 billion KRW and operating profit of 103.2 billion KRW, representing decreases of 13.7% and 52.6% respectively compared to the previous year. NCSoft, which lost public favor due to excessive monetization, received a disappointing report card with the underperformance of its new release 'Blade & Soul 2'. Nexon's third-quarter earnings are projected at sales between 65.4 billion and 71.5 billion JPY (677.4 billion to 741.1 billion KRW) and operating profit between 20.1 billion and 25.3 billion JPY (208.1 billion to 262.2 billion KRW). Netmarble, which released titles such as 'The Second Country' and 'Marvel Future Revolution' this year, saw sales grow by 7.7% to 692.1 billion KRW, but operating profit is expected to decline by 28.7% to 62.3 billion KRW, due to increased marketing expenses from new releases.

On the other hand, Kakao Games is expected to achieve record-breaking results. Its MMORPG 'Odin: Valhalla Rising', released in June, has topped domestic mobile game sales for three consecutive months, marking a quantum leap. Kakao Games' third-quarter sales are estimated at 353.1 billion KRW, with operating profit at 48.5 billion KRW, representing growth of 134.6% and 128.2% respectively compared to the previous year. Krafton's third-quarter sales are projected at 461.2 billion KRW and operating profit at 188.6 billion KRW, growing 31.8% and 12.5% respectively. The blockbuster success of 'Battlegrounds (Baeg): Mobile India' drove these strong results.

In response to 2K's rapid rise, the 3N are launching an all-out effort with new releases. NCSoft is placing its hopes on the upcoming release of 'Lineage W' on the 4th of next month. 'Lineage W' was strategically developed for global users, and its success will be a key indicator of whether NCSoft can shed its domestic-only label. Nexon announced in August a plan to develop 10 super intellectual properties (IPs) by concentrating all its resources. Netmarble is preparing for the global release of 'Seven Knights 2' in over 170 countries worldwide.

2K’s Global Gambit

The emerging powerhouse 2K is pushing forward onto the global stage. Kakao Games recently restructured its management system, establishing a dual CEO system with Namgoong Hoon and Cho Gye-hyun, adding a 'global business direction'. CEO Namgoong will focus on North America and Europe, while CEO Cho will target the Asian market. Riding the wave of success from 'Odin', the company plans to aggressively expand its global business. Namgoong stated, "We will strive to create a full-fledged Kakao Games Season 2 that achieves not only Beyond Game but also Beyond Korea."

Krafton will also target the global market with the release of 'Baeg: New State' on the 11th of next month. 'Baeg: New State' is developed by PUBG Studio using the Baeg IP and will be released in 17 languages across more than 200 countries. Market response has been positive. According to Krafton, 'Baeg: New State' surpassed 50 million pre-registrations, setting a record for the highest number in Korean gaming history. Krafton CEO Kim Chang-han said, "'Baeg: New State' not only continues the legacy of the PUBG IP but also stands as a globally competitive game on its own. Krafton believes games will become the most powerful media and will lead the way in providing expanded experiences centered on gaming."

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