Nexon: Q1 revenues up 59 percent

May 5th, 2011

Free-to-play/Microtransaction based games maker Nexon is reporting that it’s North American business unit, Nexon America, grew a healthy 59 percent in year-over-year first quarter revenues. Traditionally a slow season for the gaming industry, Nexon has beat the odds, making this growth particularly notable. The secret sauce behind Nexon’s impressive showing? A steady release of new content, resulting in increased user engagement and sales of microtransaction based items.

“Our success is the result of our ability to deliver engaging content that our players find valuable, whether they are playing for free or purchasing items in our games,” said Daniel Kim, CEO of Nexon America. “The substantial growth we are experiencing in North America is a reflection of how well Nexon is doing globally. We are growing our traditional MMOG business as well as expanding into other platforms such as the mobile and social games, which will help to expand our global reach and the number of people playing our games.”

In addition to their currently available Atlantica Online, Combat Arms, MapleStory, Vindictus, Dungeon Fighter Online, Mabinogi, and PopTag!, Nexon plans on a second appearance at the Electronic Entertainment Expo in Los Angeles, and will showcase Dragon Nest, Nexon’s yet-to-be-released offering, as well as Vindictus. Dragon Nest is slated for a summer release for free-to-play PC gamers in the US, Canada, Australia, and New Zealand. According to Nexon, the title will combine fast-paced action alongside an engaging storyline and a the distinctive Nexon art style. Naturally, the title will be free-to-play, and microtransaction supported.

Likewise, as we recently reported, Nexon is teeing up a Facebook version, MapleStory Adventures, of the long running MapleStory franchise. And while Q1’s numbers are certainly impressive, with a Facebook launch of a perennial favorite, as well as a new “full” game, Nexon’s Q4 numbers should be poised to be off the charts.

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Nexon North America reports a 42 percent jump in Q4 revenues

January 28th, 2011

Nexon America, the North American publishing arm of Nexon global, is reporting a healthy revenue jump of 42 percent in the fourth quarter of 2010. Nexon is pointing to a strong showing in December, when Nexon reports a 60 percent increase in revenues YoY when compared to 2009’s revenues.

Nexon North America’s microtransaction based revenue generators include their highly successful FPS Combat Arms, classic MapleStory, Vindictus, Dungeon Fighter Online, Mabinogi, and PopTag! While now available for consideration on the “classics” list, Nexon’s one-that-started-it-all, MapleStory continues to drive revenues and expansion at Nexon North America, as the “Big Bang” expansion was a large driver of late 2010 revenues, bringing in not only a host of new players, but perhaps more importantly, pulling back lapsed players. As a point of reference, in mid-December, Nexon reports a massive 136,000 concurrent MapleStory players, a number that shattered the title’s previous record, in fact, nearly doubling the former record.

“It was a tremendous fourth quarter and year for Nexon and MapleStory’s Big Bang had a lot to do with it,” said Daniel Kim, Nexon America’s CEO in a statement. “Nexon has perfected a formula for gameplay with a business model that attracts players and keeps them loyal. Players don’t have to pay a cent to enjoy Nexon’s games, but our players who do pay to enhance their gameplay experience tend to spend more than the typical social gamer or subscription-based game player. Evidence of the success of this formula was seen with the release of the Big Bang expansion and the resulting increase in concurrent players and revenues.”

And although Nexon has been at it for some 10 years now, first introducing the world to the free-to-play, pay small bits of money in the game, aka microtransaction, model, the company doesn’t show any signs of resting on it’s collective laurels. 2011 hold a new title in store for Nexon America, the anticipated Dragon Nest – a fantasy based action MMOG. Initially unveiled at the 2010 E3 expo, Dragon Nest has been received with fervor in Korea and elsewhere.

“Dragon Nest will continue to raise the bar for microtransaction-based games and should energize the North American market with stylized graphics, fast action and immersive gameplay,” Kim said.

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Nexon America dishes up Black Friday deals

November 26th, 2010

For American consumers, the day after Thanksgiving, aka, Black Friday, can mean only one thing; shopping! And why should your favorite freemium game not offer the same type of “crazy” or “insane” markdown prices brick-and-mortar stores prepare months in advance for? Well according to Nexon America, they shouldn’t.

While Nexon’s Black Friday deals have technically been running all week, today is officially Black Friday, and Nexon hopes to cash in on a bit of post-turkey pixel playing. So much so, that Nexon America isn’t just offering a deal or two, here or there, as they’ve discounted a number of virtual goods items across their entire collection of properties. And just to get everyone in the holiday spirit, Nexon is also hosting holiday activities that include increased experience points events, as well as holiday and winter based events. Combat Arms snowball fight?

“We work hard on a game-by-game basis to deliver unique holiday items,” said Daniel Kim, Nexon America’s CEO. “With the enormous number of microtransactions we conduct, we have proven that we know how to bring exciting and desired virtual items to our customers. Much like brick-and-mortar retailers, the holiday season represents a great opportunity for us to expand our customer base through fun sales and exciting in-game events.”

When it comes to what’s on tap for each individual Nexon title, they’ve really pulled out the stops, again, putting their best face forward, at a time when consumers are abnormally willing to spend a bit more than usual. Let’s see what your favorite Nexon title has to offer:

  • Maple Story: Using a milestone measurement, Maple Story players will unlock special discounts based on their logins and purchases. Pets, Meso Sacks, Skill point resents, and other items will be available for 30 percent off, starting today, November 26th.
  • Mabinogi: All cash items are on sale on Black Friday to Mabinogi players. Beginning November 25th, players can expect to spot a Double Rainbow Event, offering double drop rates, skill training, and ability points.
  • Dungeon Fighter Online: Perhaps the biggest discounted title of them all, DFO players will be able to buy items in bulk, with a discounted rate of 20-50 percent off. DFO’s also offering a “Capture Seria’s Turkeys” challenge, as well as a Thanksgiving Parade that rewards Thanksgiving “leftovers,” as well as costumes. DFO’s offers run through to the end of the month.
  • Vindictus: Vindictus players should swing by their nearest Supply Depot, as special giveaways and promotions have been launched since this past Wednesday. These promotions include 20 percent discounts on individual items, as well as packages. Vindictus players can also keep their eye out for a daily giveaway of the Goddess Grace, a unique in-game weapon.
  • Combat Arms: Combat Arms players have been building up points in a month long promotion that culminates today. Similar to Maple Story, Combat Arms players have had their progress tracked by a Black Friday Sale Meter, ultimately resulting in more deals for those that have played more. Soldiers can expect big discounts on weapons, gear, holiday packages, and the occasional (read: rare) free permanent items. And if cool new gear wasn’t enough, Nexon is really pulling out the stops in Combat Arms, offering double drops rates and quadruple experience points.

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Nexon North American up in revenue and players

August 3rd, 2010

Nexon North America has recently posted their Q2 2010 results with a 26 percent increase in growth as the company now reports 7 million players in Maple Story alone, up 1 million YoY. The company reports that June in particular showed strong growth (school summer holidays?), with revenues increasing a solid 36 percent when compared to June ’09.

Naturally, the increase in revenues is tied to the aforementioned increase in users. Maple Story North America has now officially surpassed the 7 million registered user mark. Likewise, Nexon’s first-person-shooter offering, Combat Arms has passed the 4 million registered user mark, and Mabinogi went over the 1 million mark earlier this year. From these three titles alone, that puts Nexon North America at over 13 million registered users, and that’s not even including Dungeon Fighter Online, PopTag, and Vindictus.

“Our player base and revenues continue to expand, which tells us that gamers find that our free-to-play business model fits their play needs,” said Daniel Kim, Nexon Americas CEO. “MapleStory is celebrating its fifth year of service in North America and shows no sign of slowing down, while Combat Arms is growing into one of the markets most popular online FPS games. With the recent successful launch of Dungeon Fighter Online and the release of Vindictus on the horizon, 2010 looks to be a big year for Nexon in North America.”

And if the numbers alone aren’t enough to back up Kim’s supposition, Nexon’s strong (and first) showing at this year’s past E3 convention in Los Angeles has firmly planted Nexon on the North American gamers’ radar. In addition to excited attendees that got their hands on Vindictus for the first time, Nexon also through what’s been reported as, “definitely a contender for ‘Best E3 Party’.” There may or may not have been reports of gaming industry figure Thresh dancing on tables with sparklers atwhirl. But again, this may or may not just be speculation.

“We made a strong statement about Nexons leadership position at E3 and we will work hard to maintain that momentum, deliver great games and continue to satisfy the gaming pubic,” Kim added.

Nexon North America has been five years in the making now, and as Kim states, it looks like the hard work and persistence are starting to pay off, and in droves. Again, the numbers above reflect only Nexon NA’s three largest titles, with a fourth, Vindictus, poised for closed beta launch on August 10th. It should be quite interesting to see how/what Nexon’s numbers will look like this time next year.

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Nexon delivers a quality experience – reaps the financial rewards

August 19th, 2009

Hot on the heels of the Tencent.com news of posting record profits, Nexon America announced yesterday that they’ve also set a few records of their own. Looking at July ’08 vs. ’09 saw a 35 percent increase in revenues.

Leading the revenue surge was Nexon’s now 6 year old (Korean) and 4 year old (North America) free-to-play genre defining Maple Story. This past July saw a record number of more than 70,000 max concurrent users online. Nexon America counts over 6 million registered users, only a small fraction of Maple Story’s 92 million total worldwide players.

To put this into perspective, the NPD Group recently reported a 29 percent drop in video game industry revenues in July ’09, when compared to the year before. So where’s the disconnect? Obviously, the current global economic situation has forced consumers into tightening the belt, and holding off on new hardware and software purchases. When looking at the current situation and instigating the “Some things will have to go,” mentality, surely that gaming subscription might be one of the first things to go. Et viola, enter stage right the appeal of free-to-play gaming.

“The economy has been tough on great deal of the games industry, but we fought hard to retain our customers and to bring in as many new players as possible,” said Min Kim, Nexon America’s vice president of marketing. “We’re heavily investing on all fronts – in our games, our publishing platform, aggressive marketing efforts as well as customer service. The best news for Nexon America is that our success isn’t just reflected in registered users, but in actual, dramatic revenue growth.”

During the month of July, Nexon put the pedal to the metal with marketing efforts including a massive internet wide campaign for their fantasy MMOG, Mabinogi. The company also ran major television and feature film preview advertising campaigns for Maple Story. If that wasn’t enough, Nexon’s popular FPS Combat Arms currently has a major campaign underway.

Coinciding with these advertising blitzes, Nexon delivered major content updates to Mabinogi, MapleStory and Combat Arms, obviously not disappointing newcomers, and keeping long time players interested.

“We are serious about making Nexon the top brand in online gaming, and we are not backing on down our efforts to deliver more content to our customers or aggressively work to attract new players,” said Kim. “We pioneered the free-to-play business model when we brought MapleStory to North America in 2005. With the slew of new games we have planned and the BlockParty initiative, which will bring players together like never before, we will continue to be the leader in this market for years to come.”

So while this question hasn’t really been at the forefront of the battle for a while, I think with Nexon’s numbers, can we officially call this “but can it be profitable?” debate to rest? I think so.

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Nexon America strikes deal with Integri

April 2nd, 2009

Free-to-play pioneer Nexon announced yesterday that they’ve struck an exclusive advertising deal with Integri, a leading video game and entertainment advertising representation company.  This is a first for Nexon, as up until now all advertising was done in house.  Under the terms of the agreement, Integri will represent and supply advertising opportunities for Nexon’s portfolio of games including MapleStory, Combat Arms, and Mabinogi.  This new partnership also obviously opens the doors for in-game advertising opportunities for Nexon as well.

nexon_logoAccording to the latest comScore reports, Integri offers advertisers and marketers an unparalleled edge in today’s online gaming and digital entertainment industry.  Nexon now finds itself in ‘heavy hitter’ territory as Integri currently has relationships with both Activision Vivendi and Sony Online Entertainment in their client list.  Targeting the coveted male (18 – 24) and female (25-54) consumer base, Integri creates customized, site specific and channel-wide opportunities designed to help each advertiser deploy tailored, integrated advertising campaigns, including banner ads, takeovers and in-game opportunities, across entertainment and specialized gaming categories including massively multiplayer online (MMO) and first person s hooter (FPS) genres.

“Nexon has always been a pioneer and leader in the free-to-play category,” said Jayson Dubin, president of Intergi. “Intergi’s exclusive and proprietary partnerships with a collection of today’s hottest online gaming and entertainment sites, offers one of the best point of entries to connecting with the coveted demographic of males 18-34 years old. Add our reach to Nexon’s market position and the possibilities for reaching gaming enthusiasts are endless.”

Nexon America, who by now should be a household name when it comes to free-to-play titles, has been cranking out hit after hit since arriving in Los Angeles 4 years ago.  Their breakthrough hit, MapleStory is still running strong today, and they’ve recently introduced a new fantasy inspired title named Mabinogi.  Nexon also operates Combat Arms, a fully free-to-play first person shooter that’s been a big hit with fans of the genre.

“Advertising is going to help Nexon America improve our services as a leader in free-to-play gaming,” said Min Kim, vice president of marketing for Nexon America. “Our user base is enthusiastic and growing, which makes us a great opportunity for marketers. And this partnership is going to allow us to improve the entire free-to-play experience for all Nexon gamers.”

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Nexon and 7-Eleven cross promote with in-game items and beta key giveaways

November 13th, 2008

Free-to-play giant Nexon and fructose corn syrup magnet 7-Eleven have been working together for almost a year now via selling Nexon pre-paid cards at a number of the highly popular convenience stores.  Things just got a bit more interesting this past Monday, when Nexon and 7-Eleven unveiled an in-game Slurpee/game code cross promotion.

Titled “Where U Play For Free!”, the cross promotion features Slurpee cups that feature graphics from Nexon’s popular titles; MapleStory, Mabinogi, Combat Arms, and the upcoming Sugar Rush.  Partakers of über sugared icy goodness will receive a Nexon game DVD when ordering up a 22-oz. or larger Slurpee, including all 4 games featured on the specially branded cups.

Ok, so far so good…7-Eleven is promoting Nexon via a free-to-play game giveaway, but what’s in it for 7-Eleven?  Ah ha! Glad you asked.  Here’s where things get really interesting.  Each Nexon branded Slurpee cup has an exclusive game code that may be entered in any one of Nexon’s titles to redeem custom 7-Eleven branded in-game gear.  Mabinogi features 20 in-game Slurpees that recover 100 HP each.  The MapleStory code will provide double XP for 90 Minutes, and the Combat Arms code will provide players with a 7-Eleven Cap and Supply Case that contains a free weapon.  If this isn’t brilliant enough, the game code ALSO provides 7-Eleven customers the opportunity to participate in the closed beat of Sugar Rush.  That’s a heckuva cool way to get in on a beta that’s scheduled for an early ’09 release.

“We’ve seen great success with the Nexon pre-paid cash cards and this partnership further solidifies 7-Eleven as a premier gaming destination,” said Brad Haga, 7-Eleven’s senior product director of services. “Free-to-play games are more popular than ever in North America, and with Nexon, we can deliver a dynamic experience for our customers looking for great entertainment.”

Now let’s take a step back to have a better look at what’s going on here.  Nexon has been leading the free-to-play charge in North America for quite a while now, and has obviously made great headway.  A strategic partnership with a non-game related brick and mortar store has been a brilliant move.  At a shop where you might stop to pick up some milk on the way home, grab a quick bite on the go, or quench your thirst (I might even have a reason to buy a Slurpee now), why not pick up a pre-paid game card to fuel your free-to-play compulsion?  Great move in itself.

Now add the branded cups, in-game virtual item redemption codes, including access to a closed beta, and in-game branded merchandise?  Someone slap me and wake me up, as this has got to be one of the best moves of the year.  If this campaign is even remotely successful, I could imagine retailers lining up around the block to get their message branded in in-game virtual items.  Racing game?  Great.  How about redeeming an Exxon cap after purchasing $20 of gas or more?  Exxon could then sell pre-paid gaming cards right next to those pre-paid phone cards.

The Nexon/7-Eleven cross promotion is a stellar example of how virtual worlds, and their associated real world marketing and advertising opportunities are becoming more and more visible and valuable to the entire business.  Do I want to see every mom and pop joint with a redeemable in-game code?  No.  Do I want to see great forays into realizing and recognizing the real-world financial possibilities for the sale, trade, and consumption of virtual world items and services? Absolutely!

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