[Featured Stock] Neowiz, Hidden P2E and Cryptocurrency Prospect... Game Stocks Rise Amid Omicron Impact

[Asia Economy Reporter Hyungsoo Park] Neowiz is showing strong performance. There is an analysis from securities firms expecting new releases next year and games utilizing Play to Earn (P2E) and Non-Fungible Tokens (NFTs). Concerns over the new COVID-19 variant 'Omicron' have also contributed to increased expectations for gaming stocks.

As of 9:36 AM on the 29th, Neowiz is trading at 29,800 KRW, up 9.78% from the previous day. Wemade Max is also rising by more than 13%.

Moonjong Lee, a researcher at Shinhan Financial Investment, explained, "We expect performance normalization starting from the fourth quarter this year," adding, "Since the affiliate Neoply has been thoroughly preparing for blockchain business, the linkage with Neowiz's P2E games is also an anticipated aspect."

Multiple new titles will be released from the end of this year through next year. On the 12th, the subsidiary GameOn launched 'Elion (PC MMORPG)' in the Japanese market. The in-house first-person shooter (FPS) game 'A.V.A' is scheduled for release within this year. Next year, major PC and console games such as 'P-ui Geojit (Soullike)' and 'Project A.V.A (Open World Survival Shooter)', as well as mobile games utilizing in-house IP like 'Brown Dust', are also planned for release.

There is also anticipation for the release of P2E games applying NFTs. Neoply, a subsidiary of Neowiz Holdings, has completed registration as a virtual asset operator and has been focusing on blockchain node operation and technology development since 2017. The researcher stated, "Neoply is expected to start the beta service of Neopin in the fourth quarter and officially launch it in the first quarter of next year," adding, "Neopin will provide not only cryptocurrency-related financial services but also NFT, P2E, Service to Earn (S2E), etc., and Neowiz's participation in P2E model game services is anticipated."

Performance normalization is expected in the fourth quarter. The researcher analyzed, "Although there was an operating loss in the third quarter, a return to profitability is possible in the fourth quarter," and added, "Web board traffic has normalized since September, and sales from new titles such as 'Unsouled' and A.V.A are also being reflected."