"Long-Lasting Games Over High Volume"... Netmarble Corporation Signals 'Structural Reform' Amid Slowing Earnings (Comprehensive)
Second-Quarter Operating Profit of 80.1 Billion… Down 20.8% Year-Over-Year
Number of New Titles to Be Released in the Second Half of This Year Reduced from 5 to 3
"Extending the Lifespan of Live Games to Improve the Industry's Health"
Normalization of Marketing Expenses and Anticipated Benefits from Next Year’s Commission Cuts
[Edaily Reporter An Yu-ri ] Netmarble Corporation(251270)is shifting its business strategy away from its long-standing approach of “frequent new game releases” to focus on extending the lifespan of its existing live games. The company plans to strengthen the foundation for the long-term success of its existing games rather than selectively releasing new titles that require massive budgets.
Netmarble Corporation’s Game Portfolio for the Second Quarter of 2026 (Photo: Netmarble Corporation’s Q2 IR Materials)
Kim Byung-kyu, CEO of Netmarble Corporation, announced the strategic shift during the second-quarter earnings call on the 5th, stating, “While the proactive adjustment of our second-half lineup is partly intended to efficiently manage resources for new game launches, the fundamental goal is to extend the PLC (Product Life Cycle) of our live games.”
In the first quarter, Netmarble Corporation had announced that it would sequentially launch five new titles in the second half of this year: △I Level Up Alone: Karma △Shangri-La Frontier: The Seven Strongest Species △Project Octopus △Evilbane △Project EGIS Co., Ltd. However, during the second-quarter earnings call, only three of these titles—excluding “Project Octopus” and “Evilbane”—were listed for release in the second half of the year.
CEO Kim explained, “While Netmarble Corporation has driven growth through frequent game releases, there have been market concerns that the lifecycle of our existing games is relatively short.” He added, “We share these concerns and have determined that a more fundamental restructuring of our business model is necessary to meet market expectations.”
Netmarble Corporation’s performance slowed in the second quarter of this year. On a consolidated basis, the company reported revenue of 749.2 billion won and operating profit of 80.1 billion won. Compared to the previous year, revenue decreased by 4.4% and operating profit fell by 20.8%. Cumulative revenue for the first half of 2026 totaled 1.4009 trillion won, with operating profit at 133.2 billion won. Compared to the previous year, revenue increased by 4.4%, while operating profit fell by 11.7%.
Netmarble Corporation’s upcoming titles scheduled for release in the second half of the year (Photo: Netmarble Corporation’s Q2 IR materials)
Netmarble Corporation plans to expand its portfolio of long-term hits by strengthening the operation of existing games rather than increasing the number of new releases. The company cited “The Seven Deadly Sins: GRAND CROSS” as a prime example.
CEO Kim stated, “This game, which has been in service for over seven years, is maintaining annual revenue of over 100 billion won while showing sustained growth beyond 2024,” adding, “It is a case that has proven strong potential in terms of Product Life Cycle (PLC).” He continued, “We will focus in the second half of the year on a strategy to apply this operational know-how to other live games to gradually extend their lifecycles and increase revenue.”
“Effects of App Store Fee Reductions to Be Fully Reflected Starting Next Year”
He dismissed concerns that a reduction in new game releases would lead to a slowdown in performance. CEO Kim said, “Scheduled regional expansions and enhancements to live services are set to proceed sequentially in the third and fourth quarters,” adding, “Even if we make some adjustments to our new game lineup, I do not believe this will result in a revenue decline to the extent the market fears.”
He also emphasized that cost pressures are expected to ease starting in the second half of the year. In the second quarter, Netmarble Corporation’s marketing expenses increased by 9.1% quarter-over-quarter due to new game launches, while personnel expenses rose by 8.9% quarter-over-quarter to 182.5 billion won, reflecting the impact of salary increases.
Do Ki-wook, Head of Financial Strategy at Netmarble Corporation, predicted, “While marketing expenses rose in the first half due to new game launches, we expect them to return to previous quarterly levels in the second half,” adding, “We also expect the effects of reduced app store commission rates to become significantly evident starting next year rather than this year.”
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