Patrick Söderlund, chair of Nexon's Japan subsidiary, said it is realistically difficult to meet the previously presented 7 trillion won sales target for 2027 and announced plans to reshape the business structure and strengthen expense controls.
Söderlund said at a capital markets briefing in Tokyo on the 31st, "At first, we expected expanded franchise performance and new releases to translate into profitability, but in reality they did not."
Söderlund cited the structural slump of DUNGEON & FIGHTER Mobile, delays in new releases, and increased expense due to portfolio expansion as the main causes. He added, "Sales increased, but expense rose even faster, heightening pressure on profitability."
Accordingly, Nexon plans to streamline its overly expanded game portfolio. Söderlund said, "We will review all projects, keep only those that meet revenue criteria, add investment to some, restructure some, and cancel others."
On the recent controversy over probabilities in "Maple Growing," he called it "a clear management failure." He said, "The code error was neither reported to management nor disclosed to users," adding, "The damage to trust is a bigger problem than the financial burden from refunds."
To prevent a recurrence, Nexon plans to strengthen its internal control system by creating a chief risk officer (CRO) role, introducing dual reporting lines, and enhancing board oversight.
Söderlund also said, "Nexon's issue is not asset but execution," stressing the need to improve decision-making speed and expense management. He also unveiled a plan to reexamine personnel, infrastructure, and support organizations across the board to increase efficiency.
Still, he expressed confidence in mid- to long-term growth. He said, "Nexon has powerful franchises such as MapleStory and DUNGEON & FIGHTER and holds about 800 billion yen in cash," adding, "If we realign the expense structure, the foundation for growth is sufficient."
Regarding the artificial intelligence (AI) strategy, Söderlund said, "Rather than simply adopting tools, leveraging accumulated game operations data and 'context' is the source of competitiveness," adding, "We will integrate AI across development efficiency and overall service operations."