Nexon announces partnership with 2K Sports to produce Baseball Sim

May 18th, 2011

Leading games producer 2K Sports and free-to-play originator Nexon Corporation have recently announced a partnership agreement that will see the development and publishing of a new online baseball game, produced exclusively for the South Korean market. As both parties have strategic motives, 2K Sports wins with expanding their offerings into the Asian market, while Nexon scores a win with a major developer with a standard of excellence, and a long proven track record of quality gaming.

“Nexon is a pioneer in the online gaming space and its track record of creating quality online titles makes them an ideal partner,” said Christoph Hartmann, president of 2K in a statement. “We view this as a great opportunity to deliver an outstanding simulation game to a population that enjoys online gaming and has a passion for baseball. We look forward to reaching new audiences with our authentic simulation titles.”

Not only will 2K Sports be entering the market with an established partner, but this new development project will serve to further expand and enhance their existing sports lineup. Building upon their NBA 2K and MLB 2K franchises, this new versioning of a baseball title is expected to fall right in line with Nexon’s MO, presumably making the game free-to-play, with the now-standard microtransaction based monetization module.

“This partnership is an opportunity to demonstrate the scope of our development capabilities by creating a new type of online game,” said Min Suh, CEO of Nexon Corporation in a statement. “We’re confident that Visual Concepts’ (a 2K Sports studio) proven success in developing sports simulations coupled with our online gaming expertise will result in a new kind of baseball experience for Korean online gamers.”

And while Nexon has enjoyed tremendous success with their more “traditional” titles such as MapleStory and KartRider, Take-Two Asia president Hubert Larenaudie is quick to point out a market primed for baseball, “As Korea’s number one spectator sport with nearly six million fans in 2010, baseball has a massive untapped audience to whom we believe our game will appeal.”

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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: How to make Fast Company’s Most Innovative Companies list two years running

April 21st, 2011

After accomplishing a global spread of their innovative idea, free-to-play, Nexon is looking to the next generation of success, and has recently been named to Fast Company’s Most Innovative Companies in Gaming for the second consecutive year.

We’ve covered Nexon’s various achievements this year, but a quick rundown sees the company diving head first into Mobile, Social, and Console gaming congruently.

On the mobile front, Nexon produced a special “Thief Edition,” of their bread-and-butter, side scroller, Maple Story for iOS devices in 2010, while March of this year saw the arrival of their “other” top seller, Kart Rider which counts a massive 200 million registered users worldwide. Within it’s first week of availability, Kart Rider clocked over 1 million downloads.

Socially, Nexon has been a bit late to the party, however they’re making up for it with a significant partnership with A Bit Lucky which focuses on cross-platform social gaming. Not putting all their eggs in one basket, Nexon has also founded the iNiative program which selected both Antic Entertainment and onetribe to receive $1 million in capital to put towards developing games for social networks. It’s still unclear as to who exactly is driving development, but Nexon has announced a Facebook bound version of MapleStory, aptly titled MapleStory Adventures.

And finally, on the console front, just last month, Nexon announced plans to bring their popular fighter, Dungeon Fighter Online to Xbox 360 users, available in English, German, French, Italian, Spanish, and Chinese.

Obviously, with so many plates spinning, Fast Company has, yet again, taken notice. Dungeon Fighter Online with it’s 200 million global registrants, and MapleStory (90 million worldwide registered users) are leading the charge, and the gleam of Fast Company’s eye. But it’s not just Nexon’s actual gaming titles that have garnered a nod from Fast Company. The organizations’ innovative business model surrounding their Game Cards which carry pre-determined amounts of NX, Nexon’s virtual currency, are available at more than 70,000 retailers across the US in 7-Eleven, Toys ‘R Us, and Gamestop outlets.

“While Nexon has had great success in Asia and North America, our efforts to expand our platform reach is a push to make Nexon a global gaming power,” said Nexon America CEO Daniel Kim in a statement. “To be named on the Fast Company list of Most Innovative Companies in Gaming two years in a row is truly such an honor for the entire organization. We look forward to many more years of offering the best gaming experience to our fans, whether that be PC, mobile or social network platforms.”

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Nexon adds Dungeon Fighter Slayer Edition to iOS – thoughts on Nexon’s bigger plan

March 29th, 2011

Nexon has recently unleashed their popular MORPG Dungeon Fighter for iOS devices. Known as Dungeon & Fighter in all territories other than North America, The title is one of Nexon’s hottest properties, with over 200 million registered users, and now available for play on the go.

According to Nexon, the Dungeon & Fighter Slayer Edition is optimized for all iOS devices, and created by Neople, a fully owned subsidiary of Nexon. While this might be a “special edition” of Dungeon & Fighter, Nexon has taken the higher road, and is not pushing a watered down version of the title, but rather, has included a plethora of content not found on other versions of the game. Content includes Ancient Dungeons, as well as a playable Mage class to name a few. Neople/Nexon have also taken advantage of the unique interface offered by iOS devices, as players now have access to a pinch and zoom in/out of the mini-map, as well as use on screen directional keys for movement. The title still retains it’s long standing side-scrolling game play, a mechanic players have come to love and expect from Nexon.

“The iOS release of Dungeon & Fighter Slayer Edition represents a significant step forward for the Dungeon & Fighter franchise,” said Hyun-Jong Kim from Nexon Mobile in a statement. “Both longstanding fans of the franchise and new players alike will now be able to take the enthralling action of the Dungeon & Fighter universe with them on the go.”

Now if this were any other company offering yet another version of a title, I’d promptly yawn and move on. However, this is Nexon we’re talking about here. If you’re not familiar with Nexon, in a nutshell, if you like free-to-play, or paying for bits and pieces as you go, aka microtransactions, you’ve got respect to pay. While certainly not on the level of Apple, it’s fair to say that Nexon has done for games what Apple via iTunes did for music. I’ll explain:

Apple started a revolutionary program and idea with the advent of the iTunes store. It provided a safe and legitimate mechanism whereby users could pay for what they want, and download it directly to their computer. Not coming from the exact same starting point, Nexon sought to put games piracy to bed, once and for all. Their logic? Let the games loose for free, and then charge users for what they want along the way; be that a sword or potion here, or a map or additional levels there. For the longest time Nexon pushed this business model, and is not reaping the rewards. However, this was primarily browser based gaming via Nexon’s portal only.

Within the past week, we’ve seen Nexon port KartRider and their long standing flagship MapleStory over to both iOS devices and Facebook (and other social networks), as well as lead a financing round for a promising social games development house, A Bit Lucky. It’s a fair statement to make that something is definitely afoot at Nexon. With that said, Nexon is still at the pivot point, meaning, they’re now bringing their popular titles over into the social/mobile world. I see this as phase one of a much larger plan in the works. Once Nexon is settled and established in this playfield and worked out all the kinks, I believe this will be the time when we see Nexon’s investment in A Bit Lucky start to pay off, as the firm will undoubtedly produce Nexon’s next “big hit.”

Only time will tell, but it might be time to keep a closer eye on what Nexon’s up to, as Q1 is rapidly coming to a close. Next phase? My money’s on a Q4 ’11 release, just in time to take full advantage of the upcoming iOS, and most probably Phone 5.

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Nexon brings KartRider and MapleStory to the social and mobile world

March 23rd, 2011

Originator of the free-to-play model, Nexon has recently announced that they’re bringing their most popular titles, KartRider and MapleStory to the mobile and social world, respectively. KartRider Rush is targeted at iOS and Android platforms, while the classic side scrolling MapleStory Adventures will find a new home on Facebook. KartRider will arrive later this month (iOS), while MapleStory Adventures is set for a summer ’11 launch.

True to Nexon’s model, both titles will be free-to-play, and offer microtransactions as enhancements to the games, as well as provide a healthy revenue stream for Nexon. KartRider Rush will soon be a free iP (phone, pad, pod touch) app, with an Android based version arriving later this summer. KartRider Rush is a mobile/handheld version of KartRider; a title that counts a massive 200 million registered players worldwide. KartRider Rush features a multiplayer interface, allowing up to four players to race head to head on unique and challenging courses in both battle and time trial modes. If you’ve no friends to play with, fear not, as KartRider Rush also features a rich and engaging solo experience. Single player mode brings up a range of AI racers to square off against in Item Mode and Speed mode. Taking advantage of Facebook Connect, KartRider Rush fans can display their highscores and compare them against friends’ best lap times, etc. Nexon introduces the microtransactions in KartRider Rush via a variety of additional tracks all available for purchase.

On the Facebook front, Nexon brings the all-time classic, side scrolling, MapleStory (Adventures). Arriving this summer, Nexon has taken the already simple interface of MapleStory, and slimmed it down even further. MapleStory Adventures will provide the same MapleStory experience, only now on Facebook, as players are presented with a number of quests and challenges. Only now, they can ask for Facebook friend help in their trials and tribulations. Similar to the original MapleStory, Nexon will be offering microtransactions of the upgrade and in-game items variety.

“Expanding our global IPs into the social and mobile gaming space is a watershed moment in Nexon’s global expansion efforts,” said Daniel Kim, Nexon America’s CEO. “Not only will this move provide new ways for hundreds of millions of fans worldwide to experience Nexon’s games, it allows Nexon the opportunity to prove the robustness of its business model on new platforms.”

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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 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 brings GameHi Inc. into the fold

May 28th, 2010

And the acquisitions keep on rollin’ along. Arguably the company that started the free-to-play/microtransactions revolution, Korea based Nexon Inc. has recently announced their successful acquisition of GameHi Inc.

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While a number of acquisitions tend to be talent and/or technology advantage based, the Nexon acquisition is of the gobbling up of competition nature. Nexon purchased 29.3 percent of outstanding Game Hi Inc. shares, which include management rights, for $59.8 million. These rights were purchased from Gun-Il Kim, previously Game Hi Inc.’s largest shareholder. The ultimate goal for Nexon in this acquisition is to merge its online game publishing knowledge and experience with the game development capabilities of Game Hi Inc.. Ultimately, this acquisition serves to enhance Nexon’s growing influence in the freemium gaming space.

Chief executive of Nexon, Min Seo says that the two companies have a number of things in common. He believes that GameHi has proved it’s ability to create top quality titles, including Sudden Attack and Dekaron, and compares them to Nexon’s success with MapleStory, Wiznet, Dungeon Fighter Online, and Neople.

With this acquisition, it’s obvious that Nexon is committed to investing in their future. They recently reported 2009 revenues that grew from $359.7 million in 2008, to $561.5 million, a 56 percent increase. From GameHi’s side, 2009 revenues were $33.9 million, with an operating profit of $9.7 million.

As more and more gamers start and begin to invest in free-to-play titles, the ‘players’ in this field are quickly becoming ‘major players’ through acquisitions such as this one. Don’t forget, Nexon just recently acquired Korean MMO developer NDoors, and something tells me they aren’t done on their spending spree quite yet. Over the coming year, I wouldn’t be surprised to see a number of similar announcements made from those that have been around since free-to-play’s inception.

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Nexon acquires NDoors

May 5th, 2010

NDoors, most noted for their development work in hit titles Atlantica and GoonZu has recently been acquired by Seoul, Korea based Nexon Corporation.

ndoorsMapleStory, and arguably microtransactions founder, Nexon Corporation announced it’s successful majority stake purchase of fellow Korean MMO firm NDoors Corp. The deal saw 67 percent of NDoors’ stake sold to Nexon. This percentage also includes shares from the former NDoors chairman, Seong-Mun Kwon. This majority stake buy in will now give Nexon management rights as the largest shareholder. At the end of the day, NDoors will be incorporated as a subsidiary of Nexon.

The logic behind the buy in is that NDoors’ talent will increase the enterprise value and strengthen Nexon’s core capabilities.

“Nexon has been carrying out ongoing investment in the companies with outstanding development efforts” said Su-Min, CEO of NEXON. “NDOORS, as well as an excellent development capability with domestic and international publishing capabilities would be a big help to expand NEXON’s portfolio and to carry out a global expansion policy” he added.

First established in 1999, originally under the name Intizen Co., NDoors is based in Seoul, Korea, and has licensed a number of MMORPGs in Europe and Asia. In the North American market, NDoors Interactive has made strides in the free-to-play department with Atlantica Online, WonderKing Online, and Luminary: Rise of the Goonzu.

NDoors’ pulled down around $36.3 million in 2009, with an operating profit of $14 million, with 72 percent of total sales coming from overseas distributors.

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Virtual Goods Summit standout – Asian VG Market worth ~$7 billion

November 2nd, 2009

While last week’s Virtual Goods Summit in San Francisco had a wide range of facts, figures, details, and knowledge shared, the standout from this conference was +8 CEO Benjamin Joffe’s presentation on the Asian virtual goods market, and how it’s achieved a massive $7 billion valuation.

According to Joffe’s research, the nine largest publically traded online gaming companies have a valuation of $52 million. Conversely, the top four North American and European companies in the same group come in $30 million less, at $22 million.

Not only looking at just the numbers, Joffe went on to put a bit of history and development behind the figured. As duly noted, the virtual goods market and business model had it’s beginnings in Asia, primarily as a way to ward off game piracy. Recognizing the potential in the market, South Korea’s Nexon was one of the very first on the scene with virtual goods sales. 92 million registered users later, Nexon’s MapleStory is still generating revenues through virtual goods sales. Just a bit further to the north China’s Tencent is looking at $1.5 – $2 billion in sales from it’s popular QQ chat service which features a heavy online gaming influence. The bulk of these revenues are derived from virtual goods sales. According to Joffe, China’s total market could top $5 billion in revenue this year alone. Likewise, the lesser heard of Japanese virtual goods market shouldn’t be underestimated. Raking in over $1 billion a year, Japan’s top three social networks monetize manly through mobile games and their associated services. Perhaps one of the more extreme examples in the Japanese virtual goods marketplace, due to their rarity, Joffe reports that some virtual items have a real world market value of over $1,000, however, again, this is in extremely rare cases.

Joffe’s 127 slide powerpoint presentation from the Virtual Goods Summit:

Virtual Goods in Asia

View more documents from Benjamin Joffe.

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