The Finals
Documents about The Finals
NEXON Q2 2024 Investor Presentation
Nexon achieved record-breaking financial results in the second quarter of 2024, with revenue reaching ¥122.5 billion, a significant increase from the ¥94.4 billion recorded during the same period in 2023.
- Nexon achieved record Q2 2024 revenue of ¥122.5 billion, a significant increase from ¥94.4 billion in Q2 2023, driven by the launch of Dungeon&Fighter Mobile in China.
- The company outperformed its initial financial outlooks across revenue, operating income, and net income, while maintaining total assets of ¥1.25 trillion.
- The Finals has surpassed 20 million downloads, and Nexon is partnering with Tencent to adapt the title for the Chinese market as part of its global expansion strategy.
TWIG #287 Trouble in Paradise: Squad Busters and Netflix Games
The mobile gaming industry is currently navigating a period of stagnation and strategic recalibration, characterized by flat inflation-adjusted spending and a shift in how companies manage growth and valuation.
- Mobile gaming is experiencing a period of stagnation with flat inflation-adjusted spending, forcing companies to pivot toward social network valuations to escape lower gaming-sector multiples.
- Voodoo’s acquisition of BeReal for $100–$120 million fell significantly below initial market expectations, illustrating the difficulty of achieving high-valuation exits in the current climate.
- Supercell’s Squad Busters is failing to convert high download volumes into sustainable long-term retention and monetization, highlighting a broader industry struggle with 'leaky bucket' user acquisition.
Nexon Q1 2024 Earnings Letter
The Nexon Q1 2024 earnings report outlines a period of financial transition characterized by a strategic focus on stabilizing core franchises and optimizing operational efficiency.
- Nexon reported a 13% year-over-year revenue decline to ¥108.4 billion and a 48% decrease in operating income for Q1 2024, though results still exceeded internal forecasts.
- The company is banking on the May 2024 launch of Dungeon&Fighter Mobile in China to serve as a primary catalyst for future revenue growth.
- Consolidated monthly active users grew 18% year-over-year to 18.3 million, primarily driven by the launch of The Finals, despite underperformance in revenue for that title.
Helldivers 2: Highest-Grossing Game in US and UK Markets
Helldivers 2 emerged as a significant commercial success in early 2024, securing its position as the highest-grossing title on PC and PlayStation 5 during February.
- Helldivers 2 was the highest-grossing game on PC and PlayStation 5 in the US and UK during February 2024.
- Total sales volume for the title is estimated to have exceeded eight million units, following an initial milestone of one million units sold within the first week.
- The game maintained the top-grossing position on Steam for five consecutive weeks, reaching a peak of over 450,000 concurrent players.
Nexon Earnings for Fourth Quarter and Full-Year 2023
Nexon reported record-breaking financial results for the full fiscal year 2023, characterized by a 20% increase in revenue and a 30% rise in operating income.
- Nexon achieved record-breaking 2023 results with a 20% increase in annual revenue and a 30% rise in operating income.
- Q4 2023 operating income declined 59% year-over-year due to one-time expenses, including impairment losses and regulatory penalties.
- The launch of Embark Studios' 'The Finals' exceeded initial booking expectations and is now established as a core long-term franchise.
3 Trending Games Brands Should Be Capitalizing On In 2024
Gaming has established itself as a critical vertical for brand engagement, necessitating that advertisers stay ahead of emerging trends to capture viral opportunities.
- Lethal Company, a horror survival game launched in November 2023, reached 240,000 daily players and a 97.32% positive rating on Steam, making it a prime target for brand integration via custom mod packs.
- The competitive shooter The Finals has attracted approximately 4.1 million players with a daily average of 922,000, offering brands a high-traffic environment for influencer partnerships and in-game advertising.
- Brands can utilize Overwolf's 'In-Play' advertising platform to serve IAB-compliant ads directly to gamers while they are active in titles like The Finals, bypassing the ad-blockers commonly used on social media.
The Finals Hooks Top CS and VALORANT Streamers
The launch of the tactical shooter The Finals has demonstrated significant traction within the live-streaming ecosystem, particularly among audiences and creators associated with established titles like Counter-Strike and VALORANT.
- Following its December 8, 2023, release, The Finals generated 7.9 million hours watched, a peak of 93,000 concurrent viewers, and an average of 25,000 viewers across all platforms.
- The game maintained strong engagement post-launch, averaging 661,000 hours watched daily and sustaining 26,000 chat mentions on Twitch and Kick in the days following its initial surge.
- Top FPS creators, including Shroud (660,000 hours watched) and Aceu (322,000 hours watched), have driven significant viewership, signaling potential interest in a competitive scene.
Nobody in Our Industry Is Happy
The video game industry is currently facing a systemic crisis characterized by widespread dissatisfaction among stakeholders, according to outgoing Nexon CEO Owen Mahoney.
- Nexon CEO Owen Mahoney argues the gaming industry is in crisis because companies are attempting to solve development challenges by simply increasing headcount, which leads to bloated, uninspired projects.
- Mahoney contends that the current industry model leaves all stakeholders dissatisfied: customers are unhappy with products, developers are relegated to repetitive tasks, and CEOs face extreme pressure to minimize risk, resulting in a lack of innovation.
- The Insomniac Games ransomware attack resulted in the leak of sensitive data, including budgets, sales figures, and development plans for games through the 2030s, after the studio reportedly refused a $2 million ransom demand.
The Finals: Market Success Analysis
The launch of Embark Studios’ team-based first-person shooter, The Finals, represents a significant market entry, characterized by rapid adoption and high player engagement.
- Embark Studios' new team-based FPS, The Finals, achieved over 240,000 concurrent users on Steam during its first week of release.
- The Finals, owned by NEXON and developed by an 80-person team in Stockholm, features fully destructible environments, three character classes, and four maps at launch.
- A significant player backlash regarding perceived game speed was traced to a default field-of-view (FOV) change from 100 in the open beta to 71 at launch, demonstrating how technical settings can heavily influence user sentiment.
Plus: What Were December's Top Grossing PC/Console Debuts?
Analysis of PC and console market performance for December 2023 reveals a highly concentrated landscape where a few breakout hits dominate total revenue.
- The December 2023 PC market was highly concentrated, with only two out of 1,147 Steam releases exceeding $10 million in gross revenue and just 28 titles surpassing $100k.
- The free-to-play shooter The Finals was the month's top performer, generating $23.5 million in gross revenue on Steam and reaching 5.8 million players across PlayStation and Xbox.
- Warhammer 40,000: Rogue Trader led the premium segment for December, achieving $12.5 million in gross revenue on Steam.
FY2023 Q3 Earnings Conference Call: Q&A Summary
The third quarter fiscal year 2023 earnings conference call highlights a strategic transition in leadership alongside a focus on long-term growth through the upcoming launch of the title The Finals.
- The company is positioning the upcoming title 'The Finals' as its fourth major revenue pillar, expecting it to drive approximately 50% of the projected year-on-year revenue growth in North America and Europe for Q4.
- Marketing expenditures are set to increase to roughly 8% of annual revenue to support the upfront investment required for the launch of 'The Finals'.
- MapleStory remains a core financial driver, achieving 59% year-on-year growth in the Korean market.
Nexon Q3 2023 Earnings Prepared Remarks
Nexon reported strong financial performance for the third quarter of 2023, marking its sixth consecutive quarter of double-digit year-over-year revenue growth.
- Nexon achieved its sixth consecutive quarter of double-digit growth with 120.3 billion yen in revenue, a 23% year-over-year increase, and a 47% rise in operating profit to 46.3 billion yen.
- Core franchise performance drove results, led by a 46% year-over-year revenue increase for MapleStory, supplemented by contributions from FC Online and Blue Archive.
- The company is scaling its global footprint, recording record-breaking revenue in Korea and a 78% year-over-year growth surge in North American and European markets.