Nexon and Tencent's Cooperation in Releasing Games in China

TapTechNews August 10th news, Nexon has announced its latest fiscal second quarter 2024 earnings report, in which it mentioned that Nexon and Embark Studios have reached an agreement with Tencent to release games such as 'The Finals' and 'ARC Raiders' in China.

Nexon also stated that Tencent will work closely with both parties to customize the functions, content, and localization of these two games according to the tastes and preferences of Chinese players.

Nexon (listed in Japan) earnings report shows that Q2 operating profit increased by 64% year-on-year to 45.2 billion yen (TapTechNews note: currently about 2.21 billion RMB); revenue increased by 30% to 122.5 billion yen (currently about 5.989 billion RMB), and net income increased by 63% to 39.9 billion yen (currently about 1.951 billion RMB).

According to the introduction, the growth of this quarter's performance mainly comes from the release of the DNF mobile game in China. In addition, 'FC Online', 'MapleStory', and 'Blue Archive' have also contributed to the strong financial performance, and their performance in various international markets is better than expected.

By region, 46% of Nexon's revenue comes from China, 40% from South Korea, 6% from North America and Europe, and 4% from Japan. By platform, mobile games account for 54% of sales, and PC games account for 46%.

Nexon emphasizes that the global revenue of its popular series games 'Dungeon & Fighter', 'MapleStory', and 'FC' in the second quarter increased by 57% year-on-year, and the international market accounts for 60% of the total revenue.

Therefore, Nexon detailed its new business strategy named 'IP Growth Plan' in its quarterly report, and the domestic release of 'THE FINALS' and 'ARC Raiders' in cooperation with Tencent is one of the strategic plans.

Nexon President and CEO Junghun Lee said. 'The recent success of 'Dungeon & Fighter: Origin' in China reflects the strong synergy between Nexon's IP and Tencent's distribution capabilities.'

'The Finals (THE FINALS)' is a 3-player cooperative free-to-play competitive shooting game, which officially launched on December 8, 2023, and currently has a 75% positive rating on Steam.

'ARC Raiders' is a sci-fi-style third-person PvPvE extraction + shooting game set in a future Earth that is being devastated by mechanized enemies 'ARC' and the environment is extremely harsh. It is expected to announce more information at the 2024 Cologne Game Show.