Devsisters' new title "Cookie Run: OvenSmash" hit a speed bump as user numbers fell sharply right after launch. It had raised expectations after surpassing 3 million pre-registrations, but actual service performance has not backed that up. In the industry, some say the business structure that has relied on the "Cookie Run" intellectual property (IP) is shaking.
According to Mobile Index, an app analytics platform, on the 10th, the daily active users (DAU) of "Cookie Run: OvenSmash" quickly declined after hitting 182,208 on the 26th, right after launch last month. The figure fell below 100,000 four days after release and slipped to the 70,000 range within a week. With no rebound, the downtrend continued, dropping to 53,802 as of the 7th.
The steep drop is tied to issues of technical polish that surfaced from the start. Among users, complaints spread quickly about overall quality problems such as loading delays, stuttering, and character balance. In particular, given the game's real-time, head-to-head nature, network stability and controls are crucial, but the dominant view is that it fell short of expectations in these areas.
Devsisters moved to contain the damage. Chief Executive Cho Gil-hyeon and the development team appeared directly on an official-channel live stream, apologized by saying there were many shortcomings at launch, and promised optimization improvements and balance adjustments.
On the 9th, the company also pushed out its first update. It said it shortened loading times and cut the time from matchmaking to game start by about 62%. The reentry time after a match ended was reduced by about 67%, and the company added a "waiting room lobby" and "solo play" features to improve flow. It also bolstered content by introducing two new cookies and a new mode, "Coin Rush."
Market reaction remains cool. With early user churn already progressing quickly, analysts say it will be hard to expect a rebound from short-term updates alone.
The new title's slump has been reflected in the stock price. Devsisters closed at 22,650 won on the 9th, down about 28% over the past three months. After hovering above the 40,000-won range last year, the stock accelerated its slide after "OvenSmash" launched, falling to near its 52-week low of 21,750 won. Unlike the previous trend in which expectations for the new release were priced in, the lack of supporting results appears to have rapidly chilled investor sentiment.
The fundamental issue is an excessive dependence on the "Cookie Run" IP. Most of Devsisters' revenue comes from existing IP such as "Cookie Run: Kingdom," and new titles have repeated an expansion strategy based on the same IP. "OvenSmash," a real-time PvP game using Cookie Run characters and its universe, touted a new genre challenge but is seen as failing to offer users sufficient differentiation.
The company's cost structure is also a burden. Devsisters' profitability has worsened sharply amid rising marketing expenses and labor costs. Advertising expenses more than tripled from a year earlier, but operating profit fell by over 70%, and the company even swung to a loss in the fourth quarter.
In this situation, the new title's slump goes beyond a single game failure and inevitably raises questions about the company's overall strategy. Devsisters has been touting the construction of a "Cookie Run universe" and a shift to a global IP company, but as performance of its core titles wobbles, confidence in the execution of that strategy is slipping.
A gaming industry official said, "When early momentum fades quickly, improving metrics often requires revisiting not only updates but also the operation model and content structure," adding, "In particular, for competitive genres, it is not easy to entice users back once they leave."