NEOWIZ Q3 Operating Profit Falls 64%; Seeks Rebound with New Titles Next Year

"Focusing on the quality of in-house and globally published new titles"

NEOWIZ posted weak results in the third quarter of this year, weighed down by a lack of new releases and other factors.

NEOWIZ's Pangyo headquarters. Photo provided by NEOWIZ.

NEOWIZ said on November 11 that its consolidated operating profit for the third quarter was provisionally tallied at 9.6 billion won, down 63.7% from a year earlier. Revenue for the same period fell 13.3% to 110.5 billion won, while the company recorded a net loss of 10.3 billion won as foreign-currency asset valuation and translation losses stemming from the won's appreciation were reflected in its results.

Revenue from PC and console games fell 33% year over year to 39.2 billion won, but rose 5% from the previous quarter. The figures reflected the impact of the release of the Nintendo Switch 2 version of Lies of P. Shape of Dreams also contributed to results after launching in September on three console platforms: Xbox, PlayStation 5, and Nintendo Switch 2.

Mobile game revenue fell 3% year over year to 56.6 billion won, but rose 6% from the previous quarter. Revenue from Brown Dust 2 declined due to the base effect of its third-anniversary event in the previous quarter, but fandom-focused operations, including a collaboration with Chained Soldier 2, helped support sales. The launch of Kingdom 2, a massively multiplayer online role-playing game (MMORPG) developed by subsidiary Pmang Games, also contributed to results.

NEOWIZ plans to broaden its revenue base by extending the long-term operation and expansion of proven game intellectual properties (IPs), while focusing on developing new titles to secure future growth drivers. The company emphasized that its in-house projects, including the next installment in the Lies of P series, are focused on delivering the core appeal and quality of each game.

The company also said it is developing a game based on the intellectual property (IP) of The Legend of Heroes III: White Witch by Japanese game company Nihon Falcom, after securing development and publishing rights. It is also preparing global publishing titles, including a new PC and console game from U.S. game developer WolfEye Studios.

A NEOWIZ representative said, "Starting next year, we will unveil major new titles one after another and continue to identify new growth drivers."

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