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Something is going on at Nexon HQ from news
Comments
Lindsey/Moneko/NKeona was a nice girl, but soon fell sway to what a lot of GMs end up becoming.
Amy (I assume mewlynne) was the only GM that didn't seem like an utter disappointment.
As for the closing of the division, does it really affect Mabinogi? I mean, QA (which I assume is Quality Assurance) must've been absent, and I haven't seen ANY marketing for Mabinogi since a random ad on writing.com promoting G7 back in 2009. Well, that's the last one I remember clearly.
The ever changing landscape of advertisement and the battles to regulate advertisements will affect businesses going forward.
Club Penguin was the largest virtual licence Disney ever had, they threw it away, and more licensing would only harm themselves further.
Aside from that, NXC has far more grip than as far as the video game industry. They have too much financial responsibility, and do indeed need to trim.
The problem with Mabinogi advertisement is that it can be utilized, but can also backfire and cause loss of profit and a waste of investment.
Nexon KR is most definitely focused on launching mobile apps in KR this year.
Whether they intend to localize everything they produce is something we'll have to wait until 2020 to see.
After all, like everyone keeps bring to attention: Gachapons are loot boxes, and loot boxes are under legislative watch in the USA.
S.1629 - A bill to regulate certain pay-to-win microtransactions and sales of loot boxes in interactive digital entertainment products, and for other purposes.
With Nexon moving to acquire the majority stake in Embark this week just days before 2nd Quarter Earnings, followed by the planned increase of 1.4 million stock shares, it could be a hint at what Nexon plans to do in the future.
To be honest, I'm a little afraid that the cost of NXC backing Embark will/could outweigh the profit/benefits.
The guy who runs it is a ex EA executive, after all. There's no telling what could happen in the long run.
Of course that's where a controlling majority acquisition may help because Nexon would be able to make necessary changes as they see fit.
https://www.thegamer.com/nexon-developer-closes-offices-september/
"It’s hard to imagine that Nexon is having any financial troubles given the amount of money that it earns each year off of Maplestory alone, but it’s a good sign that the company is being proactive despite its financial gains. Too often are there stories about gaming developers going bankrupt because they didn't act soon enough."
"According to Games Industry, the company closed one of its offices in Los Angeles, which was its second office closure in the area in less than a month. While the exact number of affected workers isn't known, Chris Jung, production manager for Nexon America, stated on Twitter that: 'Due to a restructure at #Nexon America, they have closed the Division Partners Office in LA. A number of people, including myself, are now looking for new opportunities.'"
"Nexon commented that these actions were taken to consolidate its mobile and PC/console business in an effort to provide better support for both. The company went on to begin the process of acquiring Embark Studios, commenting that its newly acquired property will handle its western development strategy.
Nexon's comments, as well as the fact that the company has acquired Embark Studios, speaks volumes about its confidence in Nexon America. If the statements are to be believed, it's safe to say that the company didn't feel that key members at Nexon America were fulfilling their duties in a satisfactory manner."
Oh, god, please, keep Disney FAR away from anything else.
If you have Hulu, better get rid of it.
https://pdf.irpocket.com/C3659/hUeO/AOiZ/g9tN.pdf
No remarks on Mabi, so we shouldn't expect too much changes.
What I see is that Nexon is more confident in its mobile game success though.
In North America, they reported revenue of of 4 billion Yen or about $3.767 million USD.
It's a 24% increase from last year's 2nd quarter but a decline of 4% from the 1st quarter.
Important to note that Nexon usually does poorly in the 2nd (Spring) Quarter.
For the first half of 2019, North America saw an increase of 12% in revenue versus last year's first 6 months.
North America Highlights
"North America
Outperformance driven by stronger-thanexpected performance of OVERHIT. Both PC2
and mobile business grew year-over-year.
• Revenues grew year-over-year primarily driven by
contributions from Darkness Rises, MapleStory M,
and AxE launched in/or after Q2 2018; OVERHIT
launched in May.
• Year-over-year growth partially offset by
deceleration of Choices"
PC game revenue was 889 million Yen this quarter. Last quarter's PC revenue was 740 million. Last year's 2nd Q PC revenue was 569 million.
Quarter 3 Outlook
"North America
Expect year-over-year decrease due to Choices2
as well as MapleStory M and Darkness Rises due
to high comps in Q3 2018 – the quarter right
after/in which service began"
A few lines from the Dividends report
https://pdf.irpocket.com/C3659/hUeO/AOiZ/wYku.pdf
"For the three months ended June 30, 2019, revenue grew year-over-year driven by the growth of our businesses
in Korea, Japan, North America and other regions, despite the unfavorable effect of the foreign exchange rates,
with the Japanese yen appreciating year-over-year against the major foreign currencies in our business"
"North America, revenue increased year-over-year driven by positive contributions from
OVERHIT launched in Q2 2019, in addition to Darkness Rises, MapleStory M and AxE, which were launched in
and after Q2 2018. These positive contributions more than offset the year-over-year decrease in revenue from
Choices: Stories You Play ("Choices"). In other regions, revenue increased year-over-year driven by positive
contributions from MapleStory M, Moonlight Blade in Taiwan, and AxE, which were launched in and after Q3 2018,
as well as OVERHIT launched in Q2 2019. "
"Revenue for the six months ended June 30, 2019 amounted to ¥8,578 million (down 10.9% year-over-year),
and segment loss amounted to ¥2,998 million (segment loss of ¥3,411 million for the six months ended June 30,
2018)"
The decrease came from mobile.
"In North America, we expect revenue to decrease year-over-year due to deceleration of Choices, in addition to
MapleStory M and Darkness Rises facing comparisons with Q3 2018, which was a quarter just after their launch."
Note: North America includes US,Canada, Mexico only.
So there is no mention of Mabi or its restructure in NA. They do mention expecting a decrease in revenue for the summer quarter due to these changes from the mobile games section.
Q3 Report will release Nov 7.
Makes sense that loot box gamble mania- oops, I mean FIFA... would be making Nexon some cash money.
Nexon will fully acquire Embark Studios Article
“We are very excited about the value and potential that Nexon’s acquisition of Embark unlocks,” said Owen Mahoney, president and chief executive officer of Nexon, in a press release sent to GamesBeat. “Bringing Embark fully into the Nexon family will tightly integrate Nexon’s expertise in live operations and Embark’s capability of creating hit games that resonate globally to powerfully drive and accelerate delivering players great games designed to live on for years.”
Nexon recruits 'Dungeon Fighter Online' developer as savior Article
Nexon founder Kim Jung-ju has decided to recruit Hur Min, a developer of popular online game "Dungeon Fighter Online" and founder of WeMakePrice, to spearhead the reorganization of Korea's largest game maker after his failed bid to sell the company, according to industry officials Wednesday.
Nexon's absence to tarnish G-Star 2019 Article
The decision was construed as part of the firm's ongoing efforts to reorganize after Nexon founder Kim Jung-ju, who is now CEO of Nexon's holding company NXC, tried and failed to sell control of NXC.
The company is now moving to reorganize its business structure by integrating units in charge of PC online games and mobile games.
"It is regrettable that we will not be able to communicate with users at G-Star this year, but we will do our best to release better games and services," a Nexon official said.
Business Translation: People are getting fired so we can move new people in who do the same things; who we think are better, and cooler.
Basically summarizing what we already knew.
Consolidation of all its offices in NA into 1, which as a result will cut staff, as the focus of resources will be thrown into Embark. All else, relatively the same.
All of Nexon's eggs are in one basket, there are smiles all around...
And all it takes is one slip up. (Or say a certain bill to be passed, for it all to come tumbling down.)
So wise, and yet so risky of a move that it's dumb. Each month seems to be closer to either industry self regulation, or governmental intervention.
FTC News
(Look under transcripts.)
Nah, stop being so alarmist.
I'm just saying, "Never have all your eggs in one basket" exists for a reason.
And if that reason is that loot boxes become unprofitable due to harsher self regulation or legislation, then there's one egg out the window.
Well, they haven't put them all in one basket, they're sending them to Sweden to be pickled.
Funniest part is that the first thing that pops up on google using the keywords "Swedish pickled" is herring.
Is it? I mean that was what I was trying to imply the whole time.
Will consumers be forced to make the decision to cut back on either material goods consumption or service consumption?
It will be an interesting rest of the final 2 quarters this year to see if consumer behavior shifts. We might see a sudden increase in spending on goods with tariffs on hold until December, but will that change spending on services?
From Nexon's Q2 report, they're expecting overall decrease in revenue for the 3rd quarter, (which are usually low revenue quarters) but they seem to be bracing for damage for now. But what I'm interested is what kind of shifts we'll see in revenue in NA, especially when PC console gaming revenue for Nexon increased by a good margin while mobile game revenue fell.
It will be interesting to see if there will be a bigger impact from economical/geopolitical changes or from company restructuring.