Origin

Gravity Co. 20-F: FY2022

Gravity Co., Ltd. reports a solid fiscal year 2022, with revenue rising 12% to KRW 463.6 bn (US$367.9 m) and operating profit improving to KRW 104.7 bn (US$83.1 m).

• Gravity Co. reported FY2022 revenue of KRW 463.6 bn (US$367.9 m), a 12% increase, with operating profit rising to KRW 104.7 bn (US$83.1 m).
• The Ragnarok IP remains the company's primary revenue driver, accounting for 77% of total income through titles like Ragnarok Origin, Ragnarok M: Eternal Love, and Ragnarok X: Next Generation.
• Gross margin declined to 42% from 45.8% due to increased platform and royalty costs, though operating margin improved to 22.6% driven by finance income and lower tax expenses.

Global Mobile Game Market Performance: March 2023

The March 2023 global mobile game landscape was dominated by anniversary celebrations and IP-driven releases, driving significant spikes in revenue, downloads, and advertising activity.

• Anniversary events and IP collaborations drove massive revenue spikes, exemplified by Uma Musume Pretty Derby’s 303.6% App Store revenue growth and PUBG Mobile’s 32.1% month-over-month increase on Google Play.
• Casual and puzzle games dominated the advertising landscape, accounting for 66.45% of total ad spend on mini-game platforms.
• High-volume creative strategies remain critical, with titles like Mighty Party utilizing video for over 90% of their thousands of deduplicated ad creatives.

The Path: Rafi Huezo and the Origin of OMIT

The profile examines the career trajectory of Rafi Huezo, a former marketing executive who transitioned from corporate roles at Procter & Gamble and Ciroc Vodka to founding OMIT, an esports organization built on the principles of diversity and inclusion.

• Rafi Huezo, a former marketing executive for Ciroc and Procter & Gamble, founded the esports organization OMIT with a core mission to prioritize diversity and inclusion for underrepresented talent.
• OMIT originated from Huezo’s personal experience as a content creator during the COVID-19 pandemic, where he grew a streaming channel to over 10,000 followers and 3,000 subscribers before transitioning into an organization.
• The organization supports its players by providing salaries, equipment, legal services, travel funding, and content production resources to help talent who were previously overlooked or excluded from the industry.

GungHo Online Entertainment FY2022 Financial Results

GungHo Online Entertainment’s financial results for the fiscal year ending December 31, 2022, reflect a period of stable revenue generation alongside a decline in overall profitability.

GungHo Online Entertainment Financial Results Briefing: FY2022

GungHo Online Entertainment’s FY2022 financial results highlight a strategy focused on maximizing the value of existing intellectual property and expanding the global reach of its subsidiary, Gravity.

• GungHo Online Entertainment reported consolidated net sales of 105.5 billion yen for FY2022, maintaining a steady upward revenue trend despite a year-over-year profit decline caused by higher outsourcing and administrative expenses.
• The Ragnarok franchise served as a primary growth driver, with successful distribution across Southeast Asia, North America, and East Asia fueling a Q4 recovery in both sales and profit.
• Puzzle & Dragons maintained stable monthly active user counts throughout the fiscal year, supported by ongoing strategic collaborations with major intellectual properties.

Financial Results for the First Half of the Fiscal Year Ending March 2022

Koei Tecmo achieved record-breaking financial performance during the first half of the fiscal year ending March 2022, characterized by a 60.8% increase in sales to ¥37.2 billion and a 94.4% surge in operating profit to ¥16.4 billion.

• Koei Tecmo reported record H1 fiscal 2022 results with sales rising 60.8% to ¥37.2 billion and operating profit surging 94.4% to ¥16.4 billion.
• Growth was primarily driven by the Entertainment segment, where smartphone and social game revenue nearly doubled, led by titles like Romance of the Three Kingdoms Ha-do and Three Kingdoms Tactics.
• Despite strong H1 performance, the company maintained a conservative full-year sales forecast of ¥65 billion, citing potential stabilization of pandemic-driven demand and global economic volatility.

TikTok: Practical Advice for Big Discovery Wins

This analysis explores modern game discovery trends, focusing on the strategic use of TikTok for marketing and the financial viability of niche mobile game portfolios.

• TikTok serves as a potent discovery engine, with one case study demonstrating 120 million views resulting in 60,000 Steam wishlists.
• Success on TikTok requires a 'messy' and personal aesthetic, prioritizing 1-3 second hooks and on-screen captions over high-production trailers.
• Viral engagement on social platforms does not guarantee financial success, as evidenced by a project that only slightly exceeded its $50,000 crowdfunding goal despite millions of views.

Global Mobile Games in July 2022: Stumble Guys Tops the Downloads Chart

Global mobile game activity in July 2022 was dominated by strong revenue, download and advertising performances across several titles.

• Stumble Guys became the top-downloaded mobile game in July 2022 with 8.7 million downloads, a 52.6% month-on-month increase driven largely by the U.S. market.
• Uma Musume Pretty Derby achieved a 57.5% month-on-month revenue increase on the App Store, fueled by high-profile collaborations with StarHorse 4 and The Idolmaster.
• Knives Out saw a 68.1% month-on-month revenue rebound on the App Store following strategic partnerships with major franchises including One Piece, EVA, and Sword Art Online.

GungHo Online Entertainment FY2022 Q2 Financial Results

GungHo Online Entertainment’s financial results for the second quarter of the fiscal year ending December 2022 reflect a period of contraction across all primary profit metrics compared to the same period in the previous year.

• GungHo Online Entertainment experienced a broad financial contraction in Q2 FY2022, with net sales falling 8.6% to 46.6 billion yen and operating profit dropping 23.1% to 13.2 billion yen year-over-year.
• Net profit attributable to owners of the parent company saw the sharpest decline, decreasing 34.6% to 8.6 billion yen compared to the same period in the previous year.
• Flagship title Puzzle & Dragons surpassed 59 million domestic downloads as of April 2022, while the console game Ninjala reached 9 million global downloads in May 2022.

Axie Infinity: Redemption or Ruin?

Axie Infinity currently faces an existential crisis characterized by a rapid, sustained erosion of its ecosystem.

• Axie Infinity is experiencing a critical ecosystem collapse, evidenced by a sustained loss of over 250,000 daily active users per month that the free-to-play Axie Origin update failed to reverse.
• The value of core ecosystem assets, including AXS tokens, SLP currency, and Axie NFTs, has plummeted between 82% and 99% from their historical peaks.
• The project's financial stability has severely deteriorated, with land NFT prices falling 94% from 2021 highs and the community treasury suffering an 81% write-down in total value.

The Ronin Exploit & The Future of Axie Infinity - The Metacast by Naavik

The $625 million exploit of the Ronin network serves as a critical case study in the vulnerabilities inherent to blockchain bridge architecture and operational security.

• The $625 million Ronin network exploit, involving the theft of 170,000 ETH and 25 million USDC, was caused by a compromise of five out of nine validator nodes.
• The breach highlights a critical failure in IT security and internal monitoring rather than a fundamental flaw in blockchain technology, emphasizing the risks of centralized infrastructure in decentralized gaming.
• Axie Infinity is pivoting its business model away from speculative, growth-based revenue toward a 'fun-first' approach focused on long-term engagement and entertainment value.

What We Know About Axie Infinity: Origin So Far

The introduction of Axie Infinity: Origin represents a strategic pivot for Sky Mavis, aiming to transition the title from a niche play-to-earn model toward a mainstream, free-to-play (F2P) mobile card battler.

• Sky Mavis is launching 'Origin' (Battle V3) to pivot Axie Infinity toward a free-to-play (F2P) mobile card battler model, aiming to scale its userbase beyond the existing crypto-native audience.
• The update introduces three non-NFT starter Axies to lower the barrier to entry, replacing the previous requirement for new players to purchase three NFTs, which historically cost significantly more.
• To address SLP token inflation, Sky Mavis is implementing a new power-up system using 'Runes and Charms' that requires players to spend in-game resources and eventually SLP to enhance their Axies.