Mid-sized Game Industry's 'COVID-19 Boom'

Increased Indoor Activities Boost Usage... Pearl Abyss and Wemade See Revenue Growth

[Asia Economy Reporter Jin-gyu Lee] Mid-sized game companies succeeded in improving their performance in the first quarter despite the COVID-19 crisis. The increase in indoor activities due to concerns over the spread of COVID-19 led to a rise in game usage.

Pearl Abyss announced on the 13th that its first-quarter sales increased by 0.4% year-on-year to 133.2 billion KRW, and operating profit rose by 154.5% compared to the same period last year to 46.2 billion KRW. Pearl Abyss’s flagship intellectual property (IP), "Black Desert," led the performance improvement in the global market across PC, mobile, and console games. Stable live service operations of Black Desert boosted sales in Korea, North America, and Europe. Black Desert Mobile received positive responses from content updates and local events held in Korea and Japan, and global launch sales were reflected in the first quarter, contributing to revenue growth. As a result, overseas sales accounted for 76% of the first-quarter revenue.

Wemade’s first-quarter sales increased by 15.5% year-on-year to 31 billion KRW, with an operating profit of 3.2 billion KRW. The expansion of the "Legend of Mir 2 (Mir 2)" IP business, including the release of licensed games and increased royalties, drove overall sales growth. Additionally, receiving compensation from copyright litigation in China and gains from foreign exchange conversion led to a return to profitability. Wemade plans to focus its efforts on "Mir4," which is under development for release in the second half of the year, and aims to achieve meaningful results in copyright disputes related to the Mir IP.

Com2uS recorded first-quarter sales of 98.3 billion KRW, down 8.7% year-on-year, and operating profit of 23.6 billion KRW, a 21.6% decrease. Despite the off-season for its major games, Com2uS explained that the global success of "Summoners War" and the solid performance of its baseball game lineup led to steady results. It achieved overseas sales of 74.5 billion KRW, accounting for 76% of total revenue, with balanced performance worldwide. Com2uS plans to accelerate its global market strategy through continuous IP expansion and active mergers and acquisitions (M&A). It is also preparing to launch new lineups in the second half of the year, including "Summoners War: Hundred Years’ War."