Nexon and Krafton are competing to become the first South Korean game companies to achieve annual revenue of 5 trillion won, having both recorded their highest cumulative sales to date by the end of the third quarter this year. Both companies need to secure over 1 trillion won in revenue in the fourth quarter, with the performance of existing popular games and year-end new releases and updates expected to influence their annual results for 2026.
According to the gaming industry on November 11, Nexon's cumulative revenue for the third quarter reached 3.792 trillion won, marking a record high. Krafton also achieved a cumulative revenue of 3.633 trillion won during the same period, a 51% increase compared to the previous year, setting its own record. The revenue gap between the two companies stands at approximately 159 billion won.
To reach the 5 trillion won milestone, both companies need to generate over 1 trillion won in the fourth quarter. Nexon requires about 1.208 trillion won, while Krafton needs approximately 1.367 trillion won in additional revenue.
Nexon can achieve the 5 trillion won target if it maintains a similar performance to its third-quarter revenue of 1.231 trillion won. In contrast, Krafton must record a revenue increase of about 40.7% from its third-quarter revenue of 971.4 billion won. However, considering Nexon's conservative outlook for its fourth-quarter performance, achieving the 5 trillion won target this year appears challenging.
Nexon plans to expand its revenue based on the growth of its existing intellectual properties (IPs). The revenue from the 'MapleStory' franchise in the third quarter increased by 72% compared to the same period last year, reaching an all-time high. The success of updates for the domestic PC original, the popularity of classic servers in China and Taiwan, and the global expansion of 'Maple Growing' contributed to this performance. 'FC Online' also achieved its highest quarterly revenue due to system improvements and new content.
Nexon forecasts its fourth-quarter revenue to be between 107.7 billion and 118.9 billion yen (approximately 912.2 billion to 1.067 trillion won). This represents a decrease of 4% to 13% compared to the same period last year, and even if the upper end of the forecast is achieved, it is expected to fall short of the 5 trillion won target when converted to Korean won.
Nexon is set to release the MMORPG 'Tempal: Overgeared' and the fantasy world RPG 'Azure Promilia' on November 26. The company aims to boost fourth-quarter revenue by combining the growth of existing games with the impact of new releases.
Krafton experienced a slowdown in its growth during the third quarter. Its revenue was 971.4 billion won, an 11.6% increase year-on-year, but a 24.7% decrease from the previous quarter. Operating profit also fell by 35.3% year-on-year to 225 billion won. Due to foreign exchange losses from currency depreciation, the company reported a net loss of 68.4 billion won.
Krafton plans to drive revenue recovery in the fourth quarter through global collaborations and seasonal content updates for 'PUBG: Battlegrounds.' The company is expanding collaborations with global IPs, including luxury car brand Bentley and K-pop group IVE, and plans to launch a low-capacity mobile game, 'BGMI Air,' targeting emerging markets on December 10. According to the company, pre-registrations for BGMI Air have surpassed 14 million.
Meanwhile, among major domestic game companies, NC reported cumulative revenue of 2.0144 trillion won for the third quarter, achieving its annual revenue target of 2 trillion won ahead of schedule. As a result, it has raised its annual revenue forecast to 2.8 trillion won. In contrast, Netmarble saw its third-quarter revenue and operating profit decline by 8.8% and 44.6%, respectively, due to delays in new game releases. Shift Up also reported declines in revenue and operating profit of 38.8% and 58.2%, respectively, due to decreased sales from existing games.
* This article has been translated by AI.
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