According to a Business Post report, Nexon Games is preparing for a challenging 2025. CEO Park Yong-Hyun cites delays in new game launches and the declining performance of key titles like Blue Archive and The First Descendant as significant hurdles, further compounded by rising costs from workforce expansion.

Declining Performance of Major Titles

Blue Archive and The First Descendant have seen a notable decline in user engagement and revenue. After peaking at $220 million in revenue in 2023, Blue Archive’s rankings in key regions have dropped. This decline is attributed to the exodus of core staff at MX Studio, leading to delayed updates and content for the game.

The First Descendant launched with strong initial numbers, peaking at 264,860 concurrent players, but has since seen a decline in active users and revenue. Despite updates, player engagement has remained below expectations.

Impact of Delayed Releases

Nexon’s upcoming projects, including Project DX, Dungeon & Fighter Arad, Project RX, and Project 2XTF, have been delayed, leaving a content gap that could impact the company’s performance. Analysts predict that the next major release from Nexon may not come until 2026.

Efforts to Rebound

In response to these challenges, Nexon Games has ramped up restructuring efforts, including the creation of the IO Headquarters to streamline operations and enhance game quality. The company is also increasing recruitment, though this has led to a rise in operational costs, contributing to a reported $5.7 million operating loss in Q2 2024.

Looking Ahead

As Nexon Games works to address these challenges, its focus on enhancing game services and strengthening its development pipeline is aimed at positioning the company for a rebound. While 2025 may be a difficult year, these efforts could pave the way for a stronger recovery in the years to follow.