Last Year's Performance Expected to Surpass 2023
Strong Results Driven by New Release Rod Nine
The domestic gaming industry is increasingly likely to be reorganized into a 'NKS (Nexon, Krafton, Smilegate) Big Three' structure. With the unlisted company Smilegate's performance last year significantly increasing compared to the previous year, there are expectations that it will break the existing duopoly of Nexon and Krafton.
According to the industry on the 12th, Smilegate's 2024 performance is expected to improve compared to the previous year. A company official said, "Last year's performance is higher than in 2023 but is expected to fall slightly short of 2022, when the company recorded its highest sales and operating profit."
Previously, Smilegate recorded sales of 1.5771 trillion KRW and operating profit of 643 billion KRW in 2022, and in the following year, 2023, sales of 1.3813 trillion KRW and operating profit of 490.4 billion KRW.
This surpasses the performance of competitors known as the 3N, which includes NCSoft and Netmarble. The securities industry estimates that NCSoft recorded sales of 1.604 trillion KRW and an operating loss of 23.5 billion KRW last year. Netmarble is predicted to have recorded sales of 2.682 trillion KRW and operating profit of 225.3 billion KRW. Smilegate lags behind in sales but leads these companies in operating profit.
Based on current trends, Smilegate's domestic position is expected to strengthen further. There is also a possibility that a new Big Three structure called 'NKS' will be formed, surpassing the existing duopoly.
The core driver of Smilegate's strong performance is the MMORPG (Massively Multiplayer Online Role-Playing Game) new release Rod Nine, launched in July last year. This game attracted significant attention by ranking first in sales on both major markets within two weeks of its release. According to PC room statistics service 'The Log,' Rod Nine recorded a cumulative playtime of 1,343,450 hours, making it the most popular new release last year. The company stated, "Rod Nine is a project Smilegate has prepared over a long period, and its solid gameplay and continuous updates have provided high satisfaction to users," adding, "It has great potential for expansion not only domestically but also in the global market."
Smilegate's existing IPs (intellectual properties), Crossfire and Lost Ark, have also significantly contributed to performance improvement. Crossfire has maintained stable results in the global market for nearly 20 years. Its strong presence in the Chinese and Southeast Asian markets has become an important pillar of Smilegate's sales. A company official said, "Crossfire is not just an old game but maintains timeless competitiveness through continuous renewal and content expansion." Lost Ark consistently ranks within the top five in domestic PC room market share, solidifying Smilegate's domestic position based on its gameplay and user loyalty.
Smilegate plans to continue its performance growth this year with a new lineup of releases. In particular, 'Chaos Zero Nightmare,' developed by its subsidiary Super Creative, is regarded as a highly anticipated mobile RPG. A Smilegate official said, "2025 will be a year where existing IPs and new releases harmonize to strengthen both stability and growth," adding, "We plan to achieve sales diversification through a global market expansion strategy."
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