DevSisters Posts 17.4 Billion Won Q1 Loss... Launches Unpaid Management and Voluntary Retirement Program

Three Consecutive Quarters of Operating Losses
"Implementing Sweeping Management Reforms"

DevSisters was unable to avoid an operating loss due to the disappointing performance of its new titles. In response, the company has launched a sweeping management overhaul, including implementing a voluntary retirement program for all employees.

DevSisters logo. Provided by DevSisters

DevSisters announced on the 11th that it recorded an operating loss of 17.4 billion won in the first quarter of this year, turning to a loss compared to the same period last year when it posted an operating profit of 9.4 billion won. The company recorded operating losses for three consecutive quarters, with losses of 700 million won and 12.4 billion won in the third and fourth quarters of last year, respectively. Revenue in the first quarter of this year was 58.5 billion won, down 34.4%. Net loss for the quarter was 15.1 billion won, compared to a net profit of 10.2 billion won in the same period last year.

Both existing and new games underperformed. The fifth anniversary update of "Cookie Run: Kingdom" fell short of expectations, and the initial performance of the newly released "Cookie Run: OvenSmash" at the end of March was also weak. A DevSisters representative stated, "The core title, Cookie Run: Kingdom, recently launched an update marking the beginning of its second chapter," adding, "By full-scale expansion of the 'Cookie Run Universe,' we have opened up new possibilities and, based on high user immersion in characters and the world, will continue to pursue long-term service and revenue stability."

DevSisters is initiating management reforms to respond to the current business challenges. The company is freezing new hiring except for essential positions and will reassign existing staff to departments where additional personnel are needed. In addition, a voluntary retirement program is being offered to all employees.

CEO Cho Kilhyeon and co-chairs of the board, Lee Jihoon and Kim Jongheun, have decided to forgo salaries until management stability is secured. The compensation of key executives will also be cut in half, and a cost management task force reporting directly to the CEO will be established. The company will fully adopt new technologies such as artificial intelligence (AI) across all work areas except for those that are uniquely creative aspects of intellectual property (IP), expanding their use to both development and non-development sectors.

DevSisters also plans to conduct a comprehensive review of its game and IP business portfolios. While expanding its core asset, the Cookie Run IP, the company will focus investments on IP businesses that demonstrate tangible results. New projects will be subject to rigorous business feasibility assessments, and the company aims to strengthen its investment and growth strategies based on selection and concentration.

Going forward, DevSisters intends to focus on expanding new titles and the ecosystem based on the Cookie Run IP. In the third quarter of this year, DevSisters will globally launch a new mobile idle RPG, "Cookie Run: Crumble." The company also plans to release a trading card game (TCG) based Roblox title, "Cookie Run Card Collection," and strengthen global distribution channels by expanding overseas shipping regions for the Cookie Run Store.

A DevSisters spokesperson said, "Based on our management overhaul, we will drive the successful launch of new titles in the second half of the year, enhance the efficiency of our core live services, and solidify our management stability."

This content was produced with the assistance of AI translation services.