Content Consumption Cycle Accelerates
The author is an analyst of NH Investment & Securities. He can be reached at jaemin.ahn@nhqv.com. -- Ed.
Since the outbreak of Covid-19, game companies have seen a rise in both gaming hours and sales. However, the content consumption cycle has also been accelerated, and demand for new games is increasing as well. We advise paying attention to firms which are planning to release new titles in 2H20.
Long-awaited new titles slated for release in 2H20
Since the outbreak of Covid-19, game companies have seen a rise in both gaming hours and sales. However, the content consumption cycle has also accelerated, and demand has increased for new games. Thus, we advise taking note of companies that plan to release new games in 2H20.
NCSOFT has recently announced its plan to launch B&S2 by end-2020. Backed by new game momentum and Lineage 2M’s expected overseas launch in 2H20, the company should display earnings growth in the second half of the year.
Com2uS plans to release Summoners War: Lost Centuria in 2H20. Other games slated for release in 2H20 include Netmarble’s StoneAge World, Seven Nights 2, and Marvel Realm of Champions, Neowiz’s Embers in the Storm (China), SundayToz’s Anipang 4, WeMade’s the Legend of Mir 4, and Pearl Abyss’s Eve Echoes Mobile (China).
Combo Web-board game market to expand rapidly
An amendment to Game Industry Promotion Act regulations regarding web-board games was promulgated on Apr 7 after it was passed by the National Assembly. After four years of struggles, web-board game regulations have finally been eased, which bodes well for Neowiz and NHN. With game consumption rising in the wake of Covid-19, the web-board game sector should grow strongly this year.
Thanks to Apple’s introduction of an age verification system in Aug 2019, web-board games are available on the App Store. This, along with Covid-19, has led to a strong sales growth of web-board games. From May, further sales growth is expected on the passage of the amendment. While 2Q represents a slow season for web-board games, they have seen higher sales in 2Q20.