New Releases Are Coming... Game Industry Benefiting from COVID-19 Continues to Race Ahead

[Asia Economy Reporter Buaeri] The gaming industry, which enjoyed a boom last year as the number of people staying home increased due to the novel coronavirus (COVID-19), continues its upward trend this year by releasing new titles. A newly established game company formed by former Netmarble employees is emerging as a dark horse with its massively multiplayer online role-playing game (MMORPG), while NCSoft has announced a series of new releases two years after launching Lineage 2M.

Is the Second Pearl Abyss Emerging?

According to the gaming industry on the 22nd, NPIXEL's 'Gran Saga,' set to be released on the 26th, is considered one of the most anticipated titles of the first half of the year. NPIXEL was founded by star developers of Netmarble's hit game 'Seven Knights.' Gran Saga is an MMORPG depicting the adventures of a knight order to save the kingdom, characterized by its stunning graphics and action. With over 5 million pre-registrations, it is attracting industry attention. In the domestic mobile game market, titles with over 4 million pre-registrations include NCSoft's Lineage M and Lineage 2M, Pearl Abyss's Black Desert Mobile, and Nexon's Traha. If Gran Saga becomes a big hit, there is hope it will follow the example of Pearl Abyss, which quickly rose to become a mid-sized game company with Black Desert.

Major game companies such as the 3N (NCSoft, Nexon, Netmarble) are also raising expectations for their new releases. NCSoft is unusually releasing multiple new titles this year. The first to be released is expected to be 'Trickster M.' Known as the cute Lineage, it has already surpassed 3 million pre-registrations. Starting with 'Blade & Soul 2,' the sequel to 'Blade & Soul (B&S),' one of NCSoft's flagship intellectual properties (IP) alongside Lineage, various new titles will be unveiled this year, including 'Pro Baseball H3,' golf game 'Pangya M,' and Project TL utilizing the Lineage IP. An NCSoft official said, "Some games were delayed due to remote work caused by COVID-19, and as the company grew, development capabilities also improved."

Nexon is targeting the console market this year in addition to mobile and PC games. After successful launches of new titles like 'The Kingdom of the Winds: Yeon' and 'KartRider: Rush Plus' last year, Nexon will enter the console market with 'KartRider Drift,' which supports PC and consoles. 'KonoSuba Mobile,' developed based on Japanese animation, is also set for release, and 'Dungeon & Fighter Mobile,' delayed last year, is among the candidates. Netmarble will release major new titles such as 'Seven Knights Revolution,' 'The Second Country,' and 'Marvel Future Revolution.' Following the success of 'Seven Knights 2' last year, which helped Netmarble's performance, it is predicted that new titles like Seven Knights Revolution will become significant revenue sources (cash cows). Among mid-sized game companies, Pearl Abyss is preparing for the launch of 'Crimson Desert' in the second half of the year.

All 3N to Join the '3 Trillion Won Club' This Year

The 3N opened the era of 7 trillion won in sales last year. The 3N's annual sales for last year, ahead of earnings announcements, are expected to comfortably exceed 7 trillion won. Nexon is on the verge of becoming the first domestic game company to achieve annual sales of 3 trillion won. Nexon's cumulative sales up to the third quarter reached 2.5323 trillion won. NCSoft is also expected to surpass 2 trillion won in annual sales for the first time in history, with cumulative sales up to the third quarter at 1.8549 trillion won. Netmarble is also expected to easily achieve mid-2 trillion won sales this year, with cumulative sales up to the third quarter at 1.8609 trillion won.

With a storm of new releases, the securities industry expects NCSoft and Netmarble to join the 3 trillion won club this year. IBK Investment & Securities estimated NCSoft's sales this year at 3.213 trillion won and operating profit at 1.339 trillion won. Netmarble is analyzed to achieve sales of 3 trillion won and operating profit of 412.5 billion won. IBK Investment & Securities researcher Lee Seunghoon said, "Lineage 2M is scheduled for release in Taiwan and Japan in the first quarter, which will significantly boost overall performance, and the potential success of Blade & Soul 2 is also high," adding, "Netmarble's Seven Knights and The Second Country IPs have high recognition in Japan, so there is a strong possibility of success not only domestically but also in the Japanese market."