The standing of Nexon's flagship casual intellectual property (IP) "Crazy Park" is shrinking. As "Crazy Arcade" and "Bubble Fighter" have in succession signaled service shutdowns, analysts say Nexon's push to cull low-profit games has entered full swing. Still, with rivals investing in casual games, some note Nexon should consider ways to leverage the IP asset it has built over many years.
According to the game industry on the 15th, Nexon will shut down online game Crazy Arcade on Aug. 13. It comes about 25 years after its 2001 launch. Bubble Fighter, a shooting game based on the Crazy Park IP, is also set to end service on the 24th of this month.
Games based on the Crazy Park IP have recently been shutting down one after another. The casual racing game "KartRider," released in 2004, ended service in March 2023, and its follow-up "KartRider: Drift" also closed last October. The only Crazy Park IP-based game still in service is "KartRider Rush+."
As news of service shutdowns continued, users expressed regret. That's because Crazy Park is regarded not just as a long-running IP but as a flagship casual IP that lifted Nexon in the early 2000s into the ranks of a national game company. In a market then centered on massively multiplayer online role-playing games (MMORPGs), it drew in light users with easy controls, short play sessions, and a low entry barrier, and is credited with serving as a core pillar of Nexon's growth.
The industry sees Nexon's decision as aligned with the strengthened efficiency drive since Chairman Patrick Söderlund took office. Söderlund signaled he would streamline an overly expanded game portfolio. At a capital markets briefing in March, he said, "We will review all projects, keep only those that meet revenue criteria, invest more in some, restructure some, and cancel others."
Even for long-running IPs, it is hard to keep online games alive when user numbers fall and sales decline. That's because expenses continue for server operations, security, customer support, and content updates. As the user base shrinks, profitability relative to operating expense worsens, and the rationale for continuing service inevitably weakens.
The industry is also not entirely upbeat about the outlook for the Crazy Park IP. According to Nexon, the only Crazy Park IP-based title currently in development is "KartRider Classic." However, KartRider Classic likewise has no specific release schedule disclosed.
In contrast to Nexon's recent moves, major game companies have been expanding investment and mergers and acquisitions in casual games. NC acquired Vietnamese casual game developer LiHuHu in December last year and also invested in domestic casual game developer Springcomes. NC also set a goal of raising the casual game revenue share to around 35% by 2030.
Krafton is also aggressive in targeting the casual market. Last year, it increased its equity in Neptune to bolster entry into the hybrid casual market, and this year, together with Neptune, it launched a global casual game contest with total prize money of $5 million (about 7.5 billion won) to secure new IP.
Behind major game companies' focus on casual games are relatively low development expense burdens and global scalability. Compared with large MMORPGs, development cycles and expense burdens are smaller, and short play sessions and easy controls make it easier to attract overseas users.
An industry official said, "Casual games are a field that major game companies have recently refocused on, and since Crazy Park is a casual IP with high recognition in Korea, it won't be easy for Nexon to let it go," adding, "Separate from game service shutdowns, the company will likely continue to consider how to carry on the character and brand asset."