Krafton Surpasses Nexon to Top Game Company Revenue and Operating Profit in Q2

Long-Term Growth of "PUBG" and "Subnautica 2" Success

Nexon's "Dungeon & Fighter" Slows; Rising Costs Hit Operating Profit

Nexon has ceded its position as the top domestic game company in sales and operating profit for the second quarter of this year to Krafton. The long-standing '3N+1K' structure (Nexon, Netmarble, NC, and Krafton) has shifted to '1K+3N.'

Nexon announced on August 13th that, on a consolidated basis, its second-quarter sales were 121.1 billion yen (approximately 1.139 trillion won) and operating profit was 31.3 billion yen (approximately 294.3 billion won). Compared to the same period last year, sales rose 2%, but operating profit dropped 17%. While flagship intellectual properties such as the "MapleStory" franchise and "Arc Raiders" performed well, sales of "Dungeon & Fighter" declined by 44%, and increased marketing costs weighed on the results.

In contrast, Krafton outperformed Nexon with second-quarter sales rising 94.9% year-on-year to 1.2902 trillion won, and operating profit jumping 67% to 410.9 billion won. The strong performance was driven by the new title "Subnautica 2" from its subsidiary Unknown Worlds, which surpassed 5 million copies sold just 22 days after its launch in May. "PUBG: Battlegrounds" also continued its long-term success.

Provided by Krafton

The situation remains the same even when looking at the first half of the year as a whole. Nexon posted record semiannual sales of 273.3 billion yen (approximately 2.5603 trillion won) and operating profit of 89.4 billion yen (approximately 837.9 billion won), but still fell behind Krafton, which recorded sales of 2.6616 trillion won and operating profit of 972.5 billion won.

This is the first time the ranking between Nexon and Krafton has changed. Since Nexon surpassed NC in annual results in 2008, it has consistently held the top spot in the Korean gaming industry by sales, except for 2017. Krafton managed to surpass Nexon in operating profit in 2024 and achieved industry-leading operating profit in the first quarter of both last year and this year, but Nexon had always maintained superior sales until now.

Nexon Braces for Change..."We Will Report Progress and Results of Innovation"

Nexon has resolved to fundamentally change its business model and build worlds that users want to remain in, amid what it considers the most difficult time for the gaming industry in more than 30 years. Patrick Soderlund, Chairman of Nexon, said during a conference call, "Nexon is a company that others in the industry aspire to emulate. We have a business model based on recurring revenue and have built our own IPs on the foundation of loyal communities," continuing, "We are building market trust, and with every new chapter each quarter, we will report our innovation milestones and achievements."

Jungheon Lee, CEO of Nexon Japan Corporation Photo by Yonhap News

The company also addressed its strategy for reviving sales of "Dungeon & Fighter." Jungheon Lee, CEO of Nexon Japan Corporation, stated, "We will expand large-scale updates and content supply, and in addition to familiar tactics like raising the maximum level or introducing new raids, we will add gameplay that offers completely new experiences." He added, "Even though we now live in an era where AI writes code and produces illustrations, the context that long-running Nexon games like 'Dungeon & Fighter' and 'MapleStory' have built cannot easily be replicated by competitors. We are striving to create a diverse range of content even faster, tailored precisely to users' preferences."

Nexon will also continue its policy of returning value to shareholders, including a special dividend of 324 billion yen (approximately 3 trillion won) next month. Shiro Uemura, Chief Financial Officer, commented, "Even after the dividend, Nexon's cash reserves will remain at about 500 billion yen. This is sufficient to immediately respond if investment or large-scale mergers and acquisitions (M&A) opportunities arise. We are also considering additional shareholder returns."

Meanwhile, NC posted operating profit more than ten times higher than the same period last year, thanks to the success of 'Lineage Classic' and the effects of mergers and acquisitions. The inclusion of mobile game platform JustPlay in its consolidated accounts meant that mobile casual sales accounted for 22% of the total, contributing to the diversification and long-term growth of the business. Netmarble, however, saw profitability weaken due to higher marketing and personnel costs.

Industry observers believe that the success of new releases from each company in the second half of the year will be crucial. Krafton will unveil five new titles, including a new project based on PUBG, at Gamescom in Germany this month. Nexon is preparing a new release based on the Dungeon & Fighter IP, and will launch "Mabinogi Mobile" in Japan in the fourth quarter of this year. NC is set to launch "AION 2" globally in September and plans to release ten or more new titles by next year.

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