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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Combat Arm opens non-in-game shopping

April 13th, 2010

Nexon’s popular free-to-play title, Combat Arms is adding yet another layer to it’s available purchasing options. Players of the FPS may already customize just about every feature of their character via the games’ in-game item shop, the Black Market. Beginning April 14th, players no longer need to be logged into the game to purchase digital goods for their characters.

Slated to launch tomorrow, Combat Arms players will be able to purchase weapons and gear with NX (Nexon’s currency) directly from the game’s website. In other words, by making this possible, players no longer need to be logged in, and actually playing in order to make purchases. This option now opens an entirely separate revenue option for Nexon. Think student at school, or casual office worker. They both know that their clan is heading into a major battle this evening, but real-life comes first, and that test must be taken, or those reports submitted. They may not have time to get to the Black Market, equip, and get used to their new gear. With nothing more than a website visit, a login, and a few clicks, this new piece of pwnage will be waiting for their character the next time they log into the game.

In addition to the “mobile mall,” Nexon is also introducing a series of new achievements, as well as two new pieces of virtual gear.

The achievement systems aids players in raising their “Combat Score,” (or overall achievement score) which benefits from each of 65 different medals offered within the game. This now brings the added dimension of achievements, allowing players to compare stats, another social driver behind continued game play. At it’s introduction, medals can be earned for both general performance, as well as game mode success.

To celebrate the new gear, achievements, and alternative purchasing power, Nexon will offer a on-day sale of a permanent UMP submachine gun on April 21st. This special piece of trigger pulling fun can be purchased with 100k Gear Points, the currency acquired through game play. This is just one part of a current Combat Arms promotion, “Explosives Month.”

Thought of the Day – What is Nexon testing here? Clearly, they have a number of other successful free-to-play titles. By adding the purchasing power offsite, with a particular emphasis on, “buy on the go,” how long will it take before the rest of Nexon’s titles offer the same? And if so…how long will it be before Nexon releases an iPhone/Android/Smart Phone application that allows players to centralize their in-game purchases, with the added value of cross-promotion?

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Battlefield Heroes raises prices – receives player backlash

December 2nd, 2009

The EA/DICE title Battlefield Heroes has had a bit of a long and winding road. From being ready to go, then only to be put on hold, and finally the release with a rather gradual, we’ll let anyone in beta. Back in September EA reported that the free-to-play title had passed the 2 million registered players mark, and all seemed well. Likewise, only a month prior, EA’s own senior analytics manager Rommy Ghaly revealed that on average, users spend around $20 in-game. Sounds fair, and all is fine and dandy in this free-to-play shooter n’est pas? Well….apparently not, as EA dropped the virtual bomb yesterday by announcing that the cost of in-game earned currency was going up, while at the same time, RMT (real money transaction) cost were to be lowered. In other words – earning currency by playing has fallen out of favor at EA, and cold hard cash income is coming to the forefront.

Announced on the forum, Battlefield Heroes price restructuring took effect on the 30th, and offers players incentives to purchase items using real money transactions to purchase the virtual currency BattleFunds, as opposed to the currency earned through play, Valor Points. In effect, EA has jacked up the cost of items purchased with Valor Points, while cut the cost of items purchased with BattleFunds by upwards of 50 percent.

But why? To find the answer to this, one might want to have a read through the 70+ page forum thread of players’ reactions. To say that they’re not pleased might be a bit of an understatement. However, if seen from EA’s position, they’ve got an interesting quandary on their hands now – one that can effect virtual economies if not properly planned. It seems as though EA has an imbalanced economy, in so much as players with plenty of time on their hands, ones that have acquired massive amounts of Valor Points through play, often have accounts with upwards of 20,000 points just sitting in the economy. Through not spending this currency, the in-game economy becomes unbalanced. To add to the headache, items purchased with said Valor Point are impermanent items which expire after a certain amount of time. Conversely, items purchased with BattleFunds are permanent items. In other words – those that spend real money for items have them forever, while earned currency buyers have advanced items for a pre-determined time period. The question is – will this change now upset game balance?

What’s also important to keep in mind here is that when Battlefield Heroes first arrived on the scene, they were the only free-to-play first person shooter on the market. Since then, competitors such as Nexon’s Combat Arms or Subagames’ Cross Fire have joined the free-to-play fps ranks. As expected, with the pricing change, a number of vocal players are irate, and have suggested that they’d rather move on to something else, rather than grind away for days on end to acquire items that previously only took a few hours to get. And while these vocal players often serve up empty threats, given the number of them (not counting those that have NOT voiced their opinions), a mass exodus is something that EA should be considering carefully before we see the once promising Battlefield Heroes dead in the water.

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Combat Arms Europe counts 800k, RuneScape 105 million!

September 3rd, 2009

Both Nexon and Jagex have recently released some impressive registered users numbers. Both free-to-play titles, Nexon’s Combat Arms is now counting approximately 800,000 registered users, while Jagex’s RuneScape has been recognized by Guinness World Records as the world’s most popular free-to-play title, with over 105 million registered users over the title’s lifespan.

Combat Arms saw a December ’08 open beta and February ’09 official Europe release date, and has recently surpassed the 800,000 registered user mark. Nexon Europe reports that their average CCU (concurrent users) number hovers around 12,000 player mark, clearly indicating that Combat Arms is one of the fastest growing and most successful free-to-play first person shooter games in Europe.

“We are thrilled by the figures and results that we see with Combat Arms Europe” said Sung Jin Kim, Director of NEXON Europe. “We receive great feedbacks from our players who love the great mix of fast-paced FPS and socialization features within the game. We are dedicated to providing an interactive and exciting gaming experience to all players at every level, and look forward to bringing far more new action through the updates we have in queue, and, consequently, to continuing with Combat Arms Europe’s great success.”

As with all Nexon offerings, Combat Arms is free-to-play, and is supported via in-game microtransaction based purchases. Titled the “Black Market” users can exchange real-world money for Nexon credits to purchase additional gear, items, clothing, etc. in order to customize their gaming experience.

And while 800,000 users for a title that’s not yet one year out on the marketplace is quite impressive, on the other end of the scale, information surfaced yesterday regarding Jagex’s RuneScape registered users numbers. According to the Guinness World Records, RuneScape is the world’s largest free game with 105 million registered users.

runescape-no-5In fairness, these numbers account for Runescape’s entire product runtime, some 9+ years. However, even if we’re looking at 9 years, that’s still on average 11.6 million users per year signing up. If that ‘somewhere around 12 million’ number is jumping out at you, yes, that’s the current estimate of active WoW players globally. And again, while this number is cumulative, according to Jagex’s CEO Mark Gerhard, approximately 10 million of those registered users are regularly logging in.

When pressed on the numbers, and asked if RuneScape is making more money than the industry yardstick, World of Warcraft, Gerhard comments that Jagex isn’t really measuring success based on financial returns. “The company is very strong financially, and it is thanks to RuneScape, but for us it’s all about active players. It doesn’t matter to us really if they’re free or paying for the expansion – as long as it’s going North we really don’t care.”
Looking to capitalize on RuneScape’s success, Jagex isn’t resting on their laurels. Currently in development at the Cambridge, England studio is MechScape, and sci-fi browser based MMO.

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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’s newest, Dungeon Fighter Online gears up for beta

June 25th, 2009

Building upon the success of their recent worldwide hit, Combat Arms, it looks like the Nexon train just keeps a rollin’ along.  Yesterday they sent over a note announcing that they’ve opened the doors on the closed beta signups for their newest title, Dungeon Fighter Online.  Signups close on the 6th of July, and no word has been given as to when the beta will commence.

dfo_teaserLooking to kill two birds with one stone, Nexon’s newest free-to-play combines classic arcade style ‘shoot ‘em up’ action with elements of RPGs that make them so addictive fun to play.  Set in the mythical world of Arad, a peaceful land that’s somehow managed to piss off some pretty nasty baddies, beta testers will be among the first in North America to explore, quest, and raid in this upcoming freebie from Nexon.

Players can choose from five different character classes: Fighter, Gunner, Mage, Priest or Slayer, with each naturally displaying unique attributes, traits, and attack combinations.  From here on out, the RPG elements come to the forefront, with characters venturing off through the world, exploring and discovering new towns, areas, etc.  Dungeon Fighter features a plethora of quirky NPC’s handing out quests and tasks (thousands, according to the official website) to further the storyline.  And as with all Nexon titles, there’s plenty of room for character customizations, weapons, armor, and new duds, at a price of course.

Again, as with all modern day online gaming experiences, Dungeon Fighter Online features an integrated chat and messaging system.  Party quests and dungeons are also thrown into the mix.  In game communication may also be used to trade and auction items.

Item equipping is limited to ten gear slots, with some limited to class, and naturally, level (what, no twinks allowed?).  Raid, or Party play features up to three other Dungeon Fighter Online players, and a PvP system is included for those wishing to fighter other players instead of the game itself.  Rounding out the ‘must haves’ in a modern online RPG, Dungeon Fighter Online includes a guild system.

In the increasingly crowded online space of free-to-play fantasy MMORPG’s, there’s nothing about Nexon’s newest effort that really makes me stand up and cheer.  Dungeon Fighter Online seems to have all the necessities, but again, nothing really outstanding that makes me think, ‘Oooo…I need to get on this one’!  I think what’s made Combat Arms a true success is that it is in fact different from the vast majority of free-to-play titles out there, both in concept and style, as well as the level of quality.  Who knows, I could be way off the mark on this, as I’ve not yet received my beta code, and this is after all, Nexon we’re talking about here, so hopefully there’s a wonderful surprise waiting for me that I haven’t quite found yet.

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NHN USA brings another free-to-play FPS MMO to US shores: Alliance of Valiant Arms

June 3rd, 2009

After wetting appetites earlier this year with the announcement of the anticipated F2P FPS MMO (too many abbreviations?) Huxley, NHN USA yesterday revealed at E3 that they’ve got another Unreal Engine 3 based title waiting in the wings.  Alliance of Valiant Arms is a free-to-play, microtransaction supported title that takes place in a parallel universe present day Europe, and centers around a hypothetical World War III.  The title will be available via the eight million members strong ijji.com.

vailiantarms“With the addition of games like Alliance of Valiant Arms, ijji.com is quickly becoming known by FPS gamers as the place where guns never cool and the smoke never clears,” said Philip Yun, CEO, NHN USA, which hosts ijji.com. “We are more and more discerning when deciding which titles to bring to the hardcore gaming portal, and A.V.A. simply blew us away. Not only does A.V.A. offer a unique urban warfare setting, but the combination the game’s realism and stellar engineering make it an intense, consuming experience our fans will have a hard time pulling themselves out of.”

A.V.A  was developed by REDDUCK, and ijji.com recently secured the North American publishing rights via Neowiz, who services the game in Korea via Pmang.  The title has an expected launch date of late 2009, perhaps just in time for the post-thanksgiving holiday season to commence.

The battle rages on between the European Union (EU) led by France and Great Britain, and the Neo Russian Federation (NRF), and is set in dense urban environments.  Once the conflict spreads to German borders, the United States leaps into action on the EU side.  Steve Butts’ coverage over at ign.com outlines the play action,

The game plays out in rounds with players taking on the role of one of three different classes. The Point Man is the scout of the group, capable of getting in and out quickly but not able to hold his own in a protracted firefight. The Rifleman is a nice mid-range class that can hit hard and fast. For long range fighting players can take the role of the Sniper. Each group has a wide range of weapons and you can setup your loadout for each class before the match begins. A selection of additional items for each weapon can impact their stats, giving you even more control over your combat abilities.

As the game will be microtransaction financed, it’s a pretty good bet that the ‘additional items’ available for each weapon will be featured in the in-game item shop and be available for purchase.

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