Krafton Focuses on Core Business, Ends "Defense Derby" Service

RisingWings Ends "Defense Derby"
Hoped for a Turnaround with Defense Derby
Company Remains in Complete Capital Erosion for Years

RisingWings, a game development studio under Krafton that had been posting consecutive losses, attempted to turn its performance around with its mobile game "Defense Derby" but failed. The company has decided to discontinue the service of Defense Derby after two years since its launch. Defense Derby is a tower defense game where players engage in strategic battles to protect their castles.

According to industry sources on April 29, RisingWings announced the previous day that it would be ending the service for Defense Derby. The company plans to terminate the service and begin accepting refund requests starting June 13. The Defense Derby operations team stated, "We have concluded that it is no longer possible to provide a satisfactory service," and added, "After careful consideration, we have made the difficult decision to end the service."

RisingWings, the developer of Defense Derby, has reported losses for five consecutive years since it was integrated with other Krafton subsidiaries in 2020. Even after launching Defense Derby in August 2023 following nearly two years of development, the company was unable to reverse its performance. Defense Derby had generated significant anticipation with over one million pre-registrations prior to launch, but it is reported that user interest waned after release.

As a result, as of the end of last year, RisingWings recorded a total equity of minus 34.1 billion won, entering a state of complete capital erosion. Approximately 15 billion won invested by Krafton was written off as having a book value of zero, effectively resulting in a loss. Samjong KPMG, which prepared the audit report, assessed, "There is significant uncertainty that raises substantial doubt about the company's ability to continue as a going concern."

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