[Edaily Reporter An Yu-ri ] The landscape of the domestic gaming market is shifting. KRAFTON has surpassed Nexon—which has long held the position of the industry’s “big brother”—in both revenue and operating profit. While Nexon also posted results that exceeded market expectations, KRAFTON’s growth was more significant.

The market structure, which had been centered on “3N+K” (Nexon, Netmarble Corporation, NCSoft + KRAFTON), appears to be shifting toward a “K+3N” model.

According to industry sources on the 13th, KRAFTON posted revenue of 1.2902 trillion won and operating profit of 410.9 billion won for the second quarter of this year. These figures represent year-over-year increases of 94.9% and 67%, respectively.

During the same period, Nexon posted revenue of 1.139 trillion won (121.1 billion yen) and operating profit of 294.3 billion won (31.3 billion yen). In yen terms, revenue rose 2% year-over-year, but operating profit fell 17%. This was due to a lack of new releases and a decline in sales of “Dungeon & Fighter” in China.

KRAFTON’s overtaking of Nexon had been foreshadowed since the first quarter. KRAFTON reported first-quarter revenue of 1.3714 trillion won and operating profit of 561.6 billion won. Nexon posted revenue of 1.4201 trillion won and operating profit of 542.6 billion won. While Nexon held a slight lead in revenue at the time, KRAFTON had already surpassed Nexon in operating profit.

KRAFTON’s growth was driven by its core PUBG IP and the new title *Subnautica 2*. Revenue from the PUBG IP franchise in the first half of the year increased by 25% compared to the same period last year. *Subnautica 2* surpassed 5 million copies sold just 22 days after its release.

Buoyed by the success of *Subnautica 2*, PC platform revenue also exceeded 500 billion won for the first time. Second-quarter console revenue increased by 143% year-over-year. Mobile revenue also reached 1.1537 trillion won, accounting for the largest share.

NCSoft’s rebound was also notable. NCSoft posted second-quarter revenue of 770.5 billion won and operating profit of 173.9 billion won. These figures represent increases of 101% and 1,053%, respectively, compared to the same period last year. Revenue marked the second-highest quarterly performance since the company’s founding, while operating profit exceeded ten times the level of the same period last year.

This improvement in performance was driven by portfolio diversification away from a reliance on “Lineage.” “Lineage Classic” and “Aion 2” delivered solid results. Casual games also established themselves as a new revenue source. In the second quarter, casual games accounted for approximately 20% of total revenue.

However, despite revenue growth, Netmarble Corporation’s profitability deteriorated. Second-quarter revenue reached 749.2 billion won, a 4.4% increase year-over-year. Operating profit fell 20.8% to 80.1 billion won. This was due to new titles released in the first half of the year failing to meet expectations, coupled with increased marketing expenses.

Netmarble Corporation is embarking on a restructuring effort aimed at extending the lifespans of its existing live games. Kim Byung-kyu, CEO of Netmarble Corporation, stated, “While we have driven growth through frequent game releases, there have been market concerns that the lifecycles of our existing games are relatively short.” He added, “We share these concerns and have determined that a more fundamental restructuring is necessary to meet market expectations.”