‘Big 3’ game companies to account for 50% of domestic market share…Sales of last year in KRW 6.5 trillion
Kim Soo Yeon | newsnews@ | 2018-02-02 11:12:58
It is expected that Big 3 game companies` Korean market share will surpass 50% for the first time last year.
According to industry and securities companies on February 1, total sales of Nexon, Net Marble Games and NCsoft totaled more than KRW 6 trillion last year, up more than KRW 2 trillion from 2016, when it reached KRW 4,149.4 billion. Last year, Net Marble Games posted sales of KRW 2.4 trillion, sales of Nexon at KRW 2.37 trillion, and NCsoft at KRW 1.77 trillion.
This is more than half the domestic game market estimated at KRW 11.5 trillion last year. According to the Korea Creative Content Agency, the market share of top three game companies rose from 22.3% in 2012 to 35% in 2015 and 41% in 2016. Last year, Big 3`s market share is expected to reach 56.2%, exceeding 50% for the first time.
The biggest growth among the Big Three is NC Soft. The company reported sales of KRW 986.3 billion in 2016, but it recorded an annual growth rate of 80% in the first year, recording KRW 1.77 trillion last year. Netmarble is expected to top the industry with a 61.3% YoY growth in sales over the next year. In 2016, sales grew to KRW 2.4 trillion last year, from KRW 1.5 trillion. Nexon`s sales reached KRW 2.37 trillion last year, an increase of 22.2 % from KRW 1.935 trillion in 2016, according to analysts.
Big 3 sales surged due to the success of mobile games. Especially, NCsoft announced that it would advance into the mobile game market in 2016, and sales surged after releasing Lineage M last year. "In Lineage M, launched in June last year, revenue of KRW 3.5 billion was generated in the fourth quarter of 2017, and sales of KRW 2 billion to KRW 3 billion were generated in Taiwan, which started service in December," said Kim Dong-hee, "Mobile game revenue is expected to reach 327 billion won, up 1668% from the same period last year."
Netmarble`s sales jumped sharply with the launch of `Lineage 2 Revolution` released in December 2016 and `Terra M` and `Pate / Grand Order` released last year. In the securities market, Lineage 2 Revolution`s daily sales by country are estimated to be 800 million Korean won, 1 billion won in Japan, KRW 500 million in Southeast Asia, and KRW 500 million in North America and Europe. "Netmarble is expected to release Icarus M, Blade & Soul Revolution, and Seven Knights MMORPG this year, so sales are expected to grow until the early 3 trillion won," said Lee Dongley, KB Securities researcher.
Meanwhile, Nexon`s mobile games such as `Over-hit` and `Ax` are driving growth. The company is targeting the domestic and overseas mobile game market this year with 8 kinds of games including `Wild Land: Durango` and `Hot Dragon Kangho M` released recently.
By Kim Soo Yeon newsnews@
[ copyright ⓒ The Digitaltimes ]
According to industry and securities companies on February 1, total sales of Nexon, Net Marble Games and NCsoft totaled more than KRW 6 trillion last year, up more than KRW 2 trillion from 2016, when it reached KRW 4,149.4 billion. Last year, Net Marble Games posted sales of KRW 2.4 trillion, sales of Nexon at KRW 2.37 trillion, and NCsoft at KRW 1.77 trillion.
This is more than half the domestic game market estimated at KRW 11.5 trillion last year. According to the Korea Creative Content Agency, the market share of top three game companies rose from 22.3% in 2012 to 35% in 2015 and 41% in 2016. Last year, Big 3`s market share is expected to reach 56.2%, exceeding 50% for the first time.
The biggest growth among the Big Three is NC Soft. The company reported sales of KRW 986.3 billion in 2016, but it recorded an annual growth rate of 80% in the first year, recording KRW 1.77 trillion last year. Netmarble is expected to top the industry with a 61.3% YoY growth in sales over the next year. In 2016, sales grew to KRW 2.4 trillion last year, from KRW 1.5 trillion. Nexon`s sales reached KRW 2.37 trillion last year, an increase of 22.2 % from KRW 1.935 trillion in 2016, according to analysts.
Big 3 sales surged due to the success of mobile games. Especially, NCsoft announced that it would advance into the mobile game market in 2016, and sales surged after releasing Lineage M last year. "In Lineage M, launched in June last year, revenue of KRW 3.5 billion was generated in the fourth quarter of 2017, and sales of KRW 2 billion to KRW 3 billion were generated in Taiwan, which started service in December," said Kim Dong-hee, "Mobile game revenue is expected to reach 327 billion won, up 1668% from the same period last year."
Netmarble`s sales jumped sharply with the launch of `Lineage 2 Revolution` released in December 2016 and `Terra M` and `Pate / Grand Order` released last year. In the securities market, Lineage 2 Revolution`s daily sales by country are estimated to be 800 million Korean won, 1 billion won in Japan, KRW 500 million in Southeast Asia, and KRW 500 million in North America and Europe. "Netmarble is expected to release Icarus M, Blade & Soul Revolution, and Seven Knights MMORPG this year, so sales are expected to grow until the early 3 trillion won," said Lee Dongley, KB Securities researcher.
Meanwhile, Nexon`s mobile games such as `Over-hit` and `Ax` are driving growth. The company is targeting the domestic and overseas mobile game market this year with 8 kinds of games including `Wild Land: Durango` and `Hot Dragon Kangho M` released recently.
By Kim Soo Yeon newsnews@