Crimson Desert Raises High Hopes, But Future Challenges Remain [Click e-Stock]

Successful at the Tokyo Game Show,
But Skepticism Remains

Pearl Abyss has finally confirmed the release schedule for its long-awaited new title, "Crimson Desert." As the company continued to post losses in the third quarter of this year, all eyes are now on the performance of the upcoming release.

On the 27th, Shinhan Investment Corp. lowered its target price for Pearl Abyss by 8.9% to 41,000 won, citing this background. The previous trading day's closing price was 35,000 won. The "Buy" investment rating was maintained.

First, Pearl Abyss has set the release date for "Crimson Desert" for March 19 next year. This comes six years after its initial unveiling in 2019. The game will launch simultaneously worldwide on PC and console, with prices ranging from $69.99 to $79.99. Kang Seokoh, Senior Researcher at Shinhan Investment Corp., explained, "When I checked at the Tokyo Game Show, there was a long queue to experience the game. Compared to other major international titles, the content scale is very large, and since it will be released as an open-world game, the potential for future content expansion is also positive."

With lackluster results in the third quarter this year, expectations are rising for the new release. Pearl Abyss recorded sales of 80.5 billion won and an operating loss of 13.8 billion won in the third quarter of this year. While sales increased by 1.3% compared to the same period last year, the company continued to post losses following the previous quarter. The operating loss also exceeded the market consensus of 12.1 billion won. The company held a user event and updates for "Black Desert Mobile" in July, and it is estimated that increased promotional expenses ahead of participation in the Tokyo Game Show in September were reflected in the results.

Kang noted, "While Pearl Abyss is recognized as one of the few domestic companies capable of developing blockbuster titles, repeated delays in release have reduced the predictability of its performance. Due to uncertainties regarding the release and cash flow of upcoming titles such as 'DokeV' and 'Plan 8,' it is difficult to apply a high price-earnings ratio (PER) to Pearl Abyss compared to global expectations for 'Crimson Desert.'"