[Click eStock] "Pearl Abyss, Watch Player Reactions to 'Red Desert' In-Game Footage in December"

[Asia Economy Reporter Eunmo Koo] KB Securities stated that Pearl Abyss is performing well on PC but is sluggish on mobile, and that the reaction to the in-game footage of Red Desert, scheduled to be released in December, will be a key factor influencing the stock price.

The core intellectual property (IP), Black Desert, shows a significant temperature difference across platforms. On the 27th, KB Securities researcher Donghoon Lee explained in a report, “Black Desert Online has maintained stable revenue based on years of operational know-how, showing a relatively steady trend due to the transition to self-service in Korea and Japan and increased demand for online games amid COVID-19,” adding, “Although not reflected in estimates, additional revenue growth is possible if self-service is decided for North America and Europe in the future.”

On the other hand, Black Desert Mobile has continued a downward trend in revenue since its global launch in the first quarter. Lee said, “Console sales were sluggish ahead of the PS5 and Xbox X/S launches, but a revenue rebound is expected in the fourth quarter,” and forecasted, “Due to the decline in mobile games, which have a high revenue share, Black Desert IP’s revenue in 2021 is expected to record 358.6 billion KRW, down 15.3% from the previous year.”

Pearl Abyss has been experiencing a long gap in new releases, with anticipated titles such as Red Desert, Dokkaebi, and Plan 8 scheduled to be released sequentially starting from the fourth quarter of next year. User reactions to Red Desert’s in-game footage, set to be unveiled in December, are expected to be a major variable affecting the stock price.

Lee analyzed, “Red Desert, scheduled for release in the fourth quarter of next year, is a sequel that inherits the Black Desert universe, supporting PC/console platforms and featuring graphics with a new engine, which raises user expectations,” adding, “While achieving results comparable to Black Desert is considered fully possible, with about a year remaining until release, a rapid improvement in investment sentiment is unlikely.”