As the shareholders' meeting season continues in the gaming industry at the end of this month, the stock prices of game companies listed on the domestic stock market are likely to plummet compared to the previous year, leading to growing dissatisfaction among shareholders. With the release dates of major new titles delayed and the number of users seeking existing popular titles declining, the stock prices of the majority of game companies, excluding KRAFTON, are on a downward trend. Additionally, as Chinese game companies prosper, the global export volume of domestic game companies has also shifted to a declining trend, raising concerns that this year's challenges will persist.
◇ Wemade's stock price down 61% in a year… KRAFTON up 52%
According to the KOSDAQ and KOSPI markets on the 19th, the stock prices of domestic game companies such as Netmarble, NCSOFT, Pearl Abyss, Wemade, and Devsisters have plummeted over the past year. The stock price of Netmarble, which rose to 72,400 won last May, recorded 40,400 won yesterday afternoon, falling approximately 44%. The stock price of NCSOFT, which recorded 192,000 won in March last year, dropped to 163,300 won yesterday. NCSOFT is scheduled to hold a shareholders' meeting on the 26th of this month, while Netmarble will hold its meeting on the 31st.
The stock price of Pearl Abyss, which hit an annual high of 47,650 won last July, fell to 30,500 won yesterday, putting it in a precarious situation near the 30,000 won mark. Kakao Games' stock price also decreased from 23,300 won a year ago to 15,500 won yesterday. The stock price of Wemade, which was tied down by the 'WEMIX' hacking incident, rose to 80,500 won in March last year but fell to 31,050 won yesterday, a drop of 61% over the year. The stock price of Devsisters also rose to 76,300 won last July, but fell to 37,650 won yesterday, representing a halving.
However, in the case of KRAFTON, the stock price, which was around 230,000 won in March last year, recorded 351,500 won yesterday, rising 52% compared to the previous year. KRAFTON's market capitalization is in the 16 trillion won range, ranking first among domestic game companies.
The reason domestic game companies' stock prices are struggling is due to low expectations for new releases. In the case of Netmarble, last year's 'Solo Leveling: Arise' succeeded in box office success, but the number of users sharply declined, resulting in decreased revenue. Moreover, delaying the expected release date of the new title 'The Seven Deadly Sins: Origin' to the fourth quarter has lowered expectations for this year's performance.
NCSOFT, which recorded its first deficit since its establishment last year, launched the new title 'Journey of Monarch' at the end of last year but faced criticism for not breaking away from 'Lineage-like' games. Pearl Abyss faced a sharp drop in stock price as it pushed back the anticipated release date of the expected title 'Crimson Desert' to the fourth quarter. Devsisters is expanding its global business by entering the Indian market using its flagship intellectual property 'Cookie Run.' However, due to its high dependence on a single IP, its stock price fluctuates more based on short-term updates or event progress rather than growth potential.
◇ Chinese blockbusters prepare for launch… 'Differentiated content must be provided'
As analyses suggest that Chinese games will excel this year, domestic game companies are facing threats to their standing. According to the Korea Creative Content Agency, last year's revenue from Chinese games in overseas markets reached $18.5 billion (about 27 trillion won). This figure represents a 13.39% increase compared to the previous year. Games developed by Chinese companies like 'Genshin Impact' and 'Black Myth: OKONG' have received favorable reviews in the global market. Large projects such as S-GAME's 'Phantom Blade Zero,' Eclipse's 'Tide of Annihilation,' and NetEase's 'Yunyi Sixteen' are also in development.
While the domestic game industry is looking for new revenue streams in global business, game exports are stagnant. According to the '2024 Korea Game White Paper' published by the Korea Creative Content Agency, the export volume of the domestic game industry in 2023 is estimated at $8.394 billion (around 10.9576 trillion won), down 6.5% compared to the previous year. This marks the first decrease in Korean game exports since 2000.
A gaming industry official noted, "There are many investors trying to profit from short-term trading, which can lead to fluctuations in stock prices," adding, "With major releases planned by global game companies in China and the U.S. this year, domestic game companies must prepare differentiated content."