"Go After the Wallets of 40-Somethings with Spending Power"... NHN, Neowiz Double Down on Web Board Games

Strengthening Revenue Base with Revamped Guild Battles and VIP Benefits
Higher Payment Limits Expected to Support Earnings in the Third Quarter
Web Board Game Profits Should Fund New Titles and Genre Diversification

NHN and Neowiz are enhancing the content and user benefits of their web board games. With this year's increase in spending limits creating conditions for revenue growth, the companies are seeking to retain existing users and strengthen their revenue base.

On Nov. 3, NHN revamped guild battles, in which groups of users compete to capture cities, across four games: "Hangame Poker," "Hangame Poker Classic," "Hangame Hold'em" and "Hangame Low Badugi." The number of cities available for capture doubled from eight to 16, and weekly rewards were increased to 3 trillion in-game gold. Neowiz also introduced a VIP tier system for "Pimang Showdown Hold'em" on Oct. 27, with benefits such as additional in-game currency coupons based on users' tiers. It also introduced "rakeback," which returns part of the game-use fees in in-game currency, and "rake caps," which limit those fees.

The gaming industry believes that higher spending limits on in-game currency could boost web board game revenues and is working to expand its user base. An amendment to the Enforcement Decree of the Game Industry Promotion Act in February raised the monthly limit for purchasing in-game currency from 700,000 won to 1 million won. As a result, NHN's web board game revenue rose 15% in the second quarter from a year earlier. Neowiz also said that average revenue per paying user (ARPPU) for its web board games rebounded after the spending limit was raised.

The fact that most web board game users are older enthusiasts with the authority to make their own spending decisions helps explain how higher spending limits can translate into revenue. According to Mobile Index, as of October, users aged 40 and older accounted for 47.89% of monthly active users (MAU) of NHN's "Hangame Poker Classic." The share of users aged 40 and older for Neowiz's "Pimang New Matgo Mobile" reached 65.31%.

Hanwha Investment & Securities said in a report that NHN's web board game business generates about 200 billion won in annual profit and supports the company's performance, adding that its profitability could continue in the third quarter. Kim Sohye, an analyst at Hanwha Investment & Securities, forecast that "web board games will continue to post solid growth even as NHN's overall game revenue declines 7.1% quarter over quarter." Jeong Euihoon, an analyst at Eugene Investment & Securities, also said that "despite a lack of new releases and declining revenue from existing titles, Neowiz's web board games and 'BrownDust2' will provide stable cash generation and help sustain quarterly profits."

However, some observers say the industry should channel the profits generated by web board games into developing new titles and diversifying game genres, given the relatively fixed user base and market size and the limits to expanding overseas.

A gaming industry official said, "Higher spending limits can expand the market, but web board games also help support the stability of the business as a whole within a set limit, without being swayed by economic fluctuations. The industry should build on this foundation to strengthen games in other genres."

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