Shift Up, which has maintained the 4th position in market capitalization in the domestic gaming industry since its initial public offering (IPO) in July, is expected to introduce the popular title "Goddess of Victory: Nikke" in China next year. "Goddess of Victory: Nikke" obtained a game service license from China in October. While the investment community is paying attention to Shift Up's growth potential, it believes that next year's performance depends on the success of its business in China.
◇ Krafton, Netmarble, NC followed by the 4th position... rising as a favorite with popular titles
Launched in 2022, the subculture mobile game "Goddess of Victory: Nikke" has been a cash cow for Shift Up, leading the company to the 4th spot in the domestic gaming industry by market capitalization. As of the 31st, Shift Up's market capitalization stands at 3.6984 trillion won, following Krafton, Netmarble, and NCsoft in the 4th position. "Goddess of Victory: Nikke" is a gun-shooting game in which beautiful girls save humanity, with publishing handled by Level Infinite, a subsidiary of the Chinese company Tencent. According to Shift Up's quarterly report, the sales for "Goddess of Victory: Nikke" in the 3rd quarter amounted to 109.169 billion won, accounting for 67.98% of the total sales (160.595 billion won).
Additionally, the AAA console game "Stella Blade," released in April this year, has received various awards and garnered attention in the industry. Stella Blade is a single-player third-person action-adventure game that recorded a user score of 9.2 on Metacritic after its release. It achieved the number one sales rank in major console markets, including the United States and the United Kingdom, shortly after its launch. It was the only Korean gaming company nominated for an award at the world's largest gaming awards ceremony, the Game Awards (TGA). As of the 3rd quarter, Stella Blade's sales reached 48.447 billion won, which accounted for 30.17% of total revenue.
Due to the success of its cash cow title and new releases, Shift Up's stock price is on the rise. Currently, Shift Up's stock price is 63,400 won, contrasting with other gaming companies whose stock prices have fluctuated and trended downward throughout the year. NCsoft, which ranks 3rd in market capitalization among gaming companies, finished with a closing price of 183,100 won, bringing its market capitalization down to 4.198 trillion won.
◇ New release hiatus begins... performance depends on the success of "Nikke" in China
Industry insiders believe that the sales of "Goddess of Victory: Nikke" are likely to trend downward gradually. According to the investment community, the 4th quarter performance of "Goddess of Victory: Nikke" globally is reported to fall short of securities firms' expectations. Operating profit began to decrease from the 3rd quarter. According to the investor relations (IR) material released by Shift Up, the operating profit for "Goddess of Victory: Nikke" in the 3rd quarter was 34.23138 billion won, about 4 billion won less than the previous quarter. Sales showed an 11% decrease compared to the previous year.
Consequently, the performance of "Goddess of Victory: Nikke" in China is expected to determine Shift Up's results for next year. Shift Up's second-largest shareholder is Tencent from China, and the publisher is Level Infinite, a subsidiary of Tencent, which is expected to focus on local marketing efforts. However, given the recent increase in the development capabilities of domestic gaming companies and the high preference of Chinese consumers for domestic titles, it remains uncertain whether "Goddess of Victory: Nikke" will gain popularity. Although Shift Up plans to launch the Chinese version of "Goddess of Victory: Nikke" after April next year, the release schedule has already been delayed once.
According to a source from the investment community, "Shift Up's next new title is scheduled for release in 2027, and the company will essentially enter a hiatus from next year. While the popularity of 'Goddess of Victory: Nikke' is expected to remain strong until next year, sales have already begun to show a slight decline. The stock price is likely to fluctuate significantly, depending on the success of its business in China," the source explained.