Middle-aged and Older Adults Staying Home Flock to Mobile Matgo and Baduk

Hangame Shin Matgo Monthly Users Up 45% Year-on-Year
Increase in Indoor Activities and Relaxation of Web Board Game Regulations
NHN and Neowiz Expected to See Higher Q2 Sales and Operating Profit

[Asia Economy Reporter Jin-gyu Lee] The number of users enjoying web board games such as Go-Stop, poker, and baduk on mobile devices has significantly increased. This is due to the rise in indoor activities amid the COVID-19 pandemic and the relaxation of regulations on web board games. The second-quarter performance of NHN and Neowiz, which provide web board game services, also shows positive signs.

◆Increase in Web Board Game Users = According to the mobile monthly active users (MAU) survey by IGAWorks on the 7th, NHN's Go-Stop game 'Hangame Shinmatgo' saw its MAU rise from 336,606 in June last year to 488,787 last month, an increase of over 45%. IGAWorks is a company that provides mobile big data services by aggregating mobile access data. 'Hangame Poker' doubled its MAU from 134,603 in June last year to 260,059 last month, and 'Hangame Baduk' also increased by about 37%, from 17,916 to 24,622 during the same period.

Neowiz's Go-Stop game 'Pimang Newmatgo' also showed a 10% increase, with MAU rising from 929,462 in June last year to 1,025,497 last month. 'Pimang Poker: Casino Royale' saw its users increase by more than 20,000, from 313,469 to 334,807 during the same period.

This increase in users is attributed to the rise in indoor activities due to the COVID-19 situation, with middle-aged and older users gravitating towards web board games that are relatively easy to access and can be enjoyed on mobile devices in a short time. Additionally, the regulation that limited daily losses in web board games to 100,000 KRW, which imposed a 24-hour game restriction if exceeded, was abolished in April, contributing to this trend. An industry insider said, "Web board games have a strong middle-aged user base compared to other genres, and with increased mobile usage during the pandemic, the use of web board games by middle-aged gamers has also increased."

◆NHN and Neowiz Forecast Strong Performance = With the increase in web board game users, game companies with a significant share in the web board game business, such as NHN and Neowiz, are forecasting strong second-quarter results. Industry estimates suggest NHN's second-quarter revenue will be around 406 billion KRW, about a 10% increase from 366 billion KRW in the same period last year. Operating profit is also expected to rise by 14%, from 25.4 billion KRW in Q2 last year to 29.2 billion KRW this year. In the first quarter, NHN's revenue increased by 6.5% year-on-year to 394.6 billion KRW, and operating profit rose by 30.2% to 28.3 billion KRW. So-hye Kim, a researcher at Hanwha Investment & Securities, explained, "The relaxation of web board game regulations implemented in April has extended gamers' playtime, and growth is expected to continue in the second half of the year. Since the web board game business margin is estimated to be over 80%, both revenue growth and significant profit improvement are anticipated."

Neowiz's second-quarter revenue is also expected to increase by about 13% to around 67.8 billion KRW, compared to 60 billion KRW in the same period last year. Operating profit is forecasted at 13 billion KRW, a 41% increase from 9.2 billion KRW last year. Neowiz's first-quarter revenue rose 8% year-on-year to 66.3 billion KRW, and operating profit surged 80% to 13.6 billion KRW. Dong-hwan Oh, a researcher at Samsung Securities, predicted, "Although the COVID-19 special demand has somewhat decreased since May, the relaxation of web board game regulations has increased revenue per user, driving revenue growth."

However, some voices caution that the pace of regulatory relaxation related to the popularity of web board games should be controlled. The gambling image of web board games could negatively affect the perception of all games. Professor Jeong-hyun Wi of Chung-Ang University, who serves as the president of the Korea Game Society, stated, "If the gambling controversy surrounding web board games coincides with issues like probability-based items or the registration of gaming addiction as a disease code, it could worsen the overall image of games. Since the government is relaxing regulations to promote the game industry, web board game companies need to strengthen self-regulation voluntarily," he emphasized.