Multiplayer online games

Korean games shares will fly next year on P2E and NFT pledge


Korean game companies are betting high on play-to-earn (P2E) labels and blockchain applications via overseas releases and will likely enjoy profits and stock gains next year despite the ban in Korea .

Wemade Co., Korean game publisher behind Legend of Mir 4, a massively multiplayer online role-playing game (MMORPG) that allows players to convert game elements into cryptocurrency and non-fungible token (NFT ), saw its share price climb 820% this year until December 23.

The gaming industry has gained a lot from P2E and NFT-based games this year, said Lee Dong-ryun, analyst at KB Securities. The P2E market will grow at full speed from the second quarter of next year, giving more momentum to gaming companies preparing to roll out more P2E games in the second half of the year, added Ahn Jae-min of NH Investment. & Securities.

According to Eugene Investment & Securities, the global blockchain-based gaming platform market is expected to grow from $ 1.5 billion this year to $ 50 billion by 2025.

Odin: The Rise of Valhalla

Odin: The Rise of Valhalla

The main growth stocks for analysts in the games sector are Krafton Inc., PearAbyss Corp. and Kakao Games Corp. As they face increased competition and a ban on NFT-based home gaming, game companies are actively expanding into the global market with new releases. scheduled for next year, said Lee Moon-jong of Shinhan Financial Investment.

Krafton, best known for the hit game Battle Royale PlayerUnknown’s Battlegrounds, is expected to see operating profit jump 75% year on year to reach 1.5 trillion won ($ 1.8 billion) in 2022, with revenue in 55% increase to 3.2 billion won, according to market data provider FnGuide.

PearlAbsyss, Creator of Cross-Platform MMORPG Black Desert Online, Expected to Generate 379.1 Billion Won in Operating Revenue on Revenue of 865.2 Billion Won, Up 816% and 114%, respectively , compared to this year.

Line W

Line W

Kakao Games, a unit of the Kakao Group, which is enjoying the success of its new game Odin: Valhalla Rising forecasts an increase in operating profit of 171% to 376.6 billion won and revenue of 33% to 1.4 trillion won. won.

NCSoft Corp. prominent is preparing its return. It regained confidence after the scandal thanks to the relevance of the company’s play-to-win business model following the successful launch of Lineage W. The company has plans to release Lineage W in more countries next year in addition to the Launch of Project TL, a sequel to the first Lineage game, Shinhan Financial Investment analyst said.

The title is also undervalued. NCSoft is expected to generate 1.07 trillion won in operating income out of 3.3 trillion won in revenue next year, up 112% and 39%, respectively, on a year-over-year basis.

By Kang Bong-jin and Cho Jeehyun

[ⓒ Pulse by Maeil Business News Korea &, All rights reserved]

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