As Throne and Liberty Lucent and Battlecrush continue to progress through testing phases and approach their official releases, the gaming community awaits the impact of these strategic moves by NCSOFT. The company's foray into new territories and genres is a testament to its adaptability and commitment to delivering innovative gaming experiences to a diverse global audience. NCSOFT's journey reflects the broader trend in the gaming industry, where developers are increasingly recognizing the importance of catering to a global community of gamers with diverse tastes and preferences.

Revitalizing the Gaming Giants: A Strategic Shift for Korean Game Companies

In the wake of a two-year industry-wide downturn, major Korean game developers, including NCSOFT, Netmarble, and Krafton, are facing a pivotal moment that demands strategic evolution. The once-dominant focus on multiplayer online role-playing games (MMORPGs) is no longer sufficient to navigate the evolving landscape of the gaming industry. Industry officials and experts are now urging these companies to diversify their platforms, expand overseas businesses, and explore new genres beyond the traditional RPG space to regain growth momentum.

The impetus for change stems from the industry's acknowledgment that the market for MMORPGs has become oversaturated. With an influx of companies entering the mobile gaming space, the competition has intensified, leading to challenges in maintaining profitability. The surge in gaming activities during the COVID-19 pandemic boosted earnings for companies providing stay-at-home content. However, as the pandemic wanes, there is a decline in profitability, particularly for companies heavily invested in mobile MMORPGs.

Professor Ju Woo-suk, an expert in Game Technology at Dongseo University, notes that Korean game companies need to adapt to the changing dynamics of the industry. While smaller companies focus on mobile gaming, larger enterprises must explore new avenues to stand out. Nexon's success in the second quarter serves as a blueprint for this approach. Nexon's emphasis on diversifying both platforms and genres contributed to a 22 percent year-on-year increase in operating profit to 264 billion won in the April-June period.

Nexon's standout performance can be attributed to its commitment to creating high-quality and enjoyable games across various genres. Unlike its counterparts, Nexon released games in categories such as adventure role-playing and shooting, making them available on mobile and console platforms, including PCs and Nintendo Switch. This strategic move demonstrated the company's ability to adapt to changing preferences and capitalize on a broader player base.

The standout success of Nexon's "Dave the Diver," an action RPG game, reinforces the importance of offering diverse gaming experiences. The game quickly became the No. 1 paid game on the global PC game platform Steam within a day of its release in June, surpassing 1 million copies in sales by last month. Other Nexon titles, such as "FIFA Online 4" and "Blue Archive," further contribute to the company's stellar performance.

In contrast, other major game companies faced challenges in the second quarter. NCSOFT reported a 71 percent year-on-year decrease in operating profit, Netmarble posted an operating loss of 37.2 billion won, and Krafton's operating profit declined by 20.7 percent year-on-year. The reliance on in-game purchases within MMORPGs is losing appeal among users, prompting a call for these companies to explore overseas markets and diversify their gaming portfolios.

One notable effort to break free from the MMORPG mold is NCSOFT's upcoming release, "Throne and Liberty." The new MMORPG, scheduled for a December launch in the Korean market, is positioned to be available on various platforms, including PC, PlayStation 5, Xbox X and S, and mobile. This diversified approach reflects NCSOFT's recognition of the need to appeal to a broader audience with throne and liberty lucent sell varying gaming preferences.