Game Industry Stock Price in 2025, Will It Be in the spotlight Again This Year?
Jan 06, 2025
'Game Company's stock price, what is the future of this year?'
In 2024, the KOSPI index fell 9.6% and the KOSDAQ 21.7%, respectively, due to various negative factors from the beginning of the year to the end of the year.
Given that stock markets in major foreign countries, including the U.S. and Japan, have risen by up to 20 percent, it is all the more painful that they have been completely shunned by domestic and foreign investors.
The stock prices of domestic game companies also failed to escape the swamp of sluggishness. Of course, there have been fluctuations, but when comparing the stock price over the past year, all but Krafton have fallen. Still, what is hopeful is that the KOSDAQ index rose sharply for two consecutive days on the 2nd and 3rd when the domestic stock market opened, and the KOSPI rebounded 1.79% on the 3rd, which was one of the themes led by the game industry.
Although it is possible to aim for the base effect caused by excessive falls, it is clear that the game industry will receive attention from investors again only if the goals set by each company, such as the release and success of expected films, the effect of cost reduction through restructuring, and the use of opportunities for blockchain and cryptocurrency rebound, are properly achieved. We look at the outlook for this year through the year-long fluctuations in stock prices of major game companies.
▶ Synergy of old and new IP, runs more
Krafton was the only major game company to see its stock price rise when it compared its closing price on Jan. 2, 2024, and Jan. 3, 2025.
It started at 195,800 won in early 2024, but rose 71.09% over the past year, hitting 335,000 won on the 3rd. In particular, it rose 5.85% on the 3rd alone, proving that it is also the best expected stock this year.
Although it has been in its eighth year since its launch, it has been more prominent in the sluggish domestic market last year thanks to the strong cash cow called 'Battlegrounds'IP, which is still showing solid sales growth online and mobile. The market capitalization also surpassed KRW 16 trillion again, ranking 89th overall in the KOSPI, further widening the gap with the market capitalization of Netmarble and NCsoft, which are in the second to third positions, and securing their status as a domestic 'game leader'.
Given that stock prices reflect future values, expectations for new works such as 'Dark & Darker Mobile' and 'Injoi' are also high. As a Krafton, if the two works are successful, it will be able to reduce its dependence on 'Battleground'IP and have an opportunity to have multiple sales sources, while also securing momentum to lead new technologies such as launching and expanding games using AI (artificial intelligence).
Nexon, which is listed on the Tokyo Stock Exchange, is still the top market cap in terms of Korea game companies with a market capitalization of 2.19 trillion yen (about 18.73 trillion won) as of December 30 last year, but the difference with Krafton has narrowed significantly due to reasons such as a drop in the yen's value. Last year, it is expected to be the first Korean game company to surpass 4 trillion won in annual sales, but the stock price has fallen 12.76 percent on a year-on-year basis. In addition to the 'Dungeon & Fighter Mobile', which is still at the top of sales since its launch in China last year, if one of the most anticipated films of the year, 'First Busker: Kazan' and 'Mabinogi Mobile' are successful, it is expected to approach the era of 7 trillion won in sales in 2027 as declared by Nexon CEO Lee Jung-hun.
Netmarble, which turned around in a year-round surplus with 'Only Level Up: Rise' released last year after escaping the quarterly deficit in the fourth quarter of 2023, showed a 9.48% drop throughout the year, but it has firmly maintained its second-largest market cap, with the 52-week high exceeding 70,000 won. This year, with the release of PC and console versions of 'Nahonleb', expected works such as 'Mongil: Star Dive' will be released as planned, and Netmarble Neo will be ready for listing.
▶ The path of crisis and transformation, and new products will be released as the foundation is strengthened
NCsoft was a game company that represented the difficulties of the domestic game industry last year, with its stock price falling to 21.25% due to a decrease in sales of LineageIP.
In order to overcome this, the government plans to overcome the crisis by attempting the most changes since its foundation, including massive restructuring and the spin-off of four development studios, and this year, with new works such as 'LLL' and 'Taektan' as well as services such as 'Lineage 2M' and 'Blade & Soul 2' that have been sold in China. Kim Taek-jin, co-chairman of Park Byung-moo, also expressed his rather grim New Year's address, saying, `Let's make efforts to cut bones thinking that there will be no future if we don't make a turnaround this year.'
Pearl Abyss is also struggling, with its stock price falling by 25.91% due to a drop in sales of 'Black Desert'IP. In the end, it is a common task that we have no choice but to escape the crisis with new works. Triple-A new work 'Red Desert', which has been hard-working for the past six years, will be released in the fourth quarter of this year, and sales and stock prices are expected to draw an upward curve again if they show up as scheduled and perform as expected.
Kakao Games also saw its stock price fall 36.37% due to a sharp drop in sales and operating profit, with its stock price, which had exceeded 110,000 won in 2020, falling to its lowest price since its listing last year. However, while 'Path of Exile 2', which was released in December last year, is receiving good responses in the market, if highly anticipated new works such as 'Chrono Odyssey', 'Archie Age Chronicle' and 'Valhalla Survival' lead to box office this year, it can be expected to turnaround this year.
The rebound in the blockchain and cryptocurrency industries led by the second Trump administration is certainly a boon for game companies that are actively developing related industries at home and abroad, such as Com2uS Group and WeMade. Although it is not easy for P2E games to be serviced in Korea this year, it is highly likely to attract attention again in the global market, so we are preparing a number of new products that have added this function to the existing IP. Action Square, joined by Jang Hyun-guk, former CEO of WeMade, who led the WeMix project at WeMade, is expected to jump into the blockchain industry anew, and its stock price more than tripled compared to early December last year.
In 2024, the KOSPI index fell 9.6% and the KOSDAQ 21.7%, respectively, due to various negative factors from the beginning of the year to the end of the year.
Given that stock markets in major foreign countries, including the U.S. and Japan, have risen by up to 20 percent, it is all the more painful that they have been completely shunned by domestic and foreign investors.
The stock prices of domestic game companies also failed to escape the swamp of sluggishness. Of course, there have been fluctuations, but when comparing the stock price over the past year, all but Krafton have fallen. Still, what is hopeful is that the KOSDAQ index rose sharply for two consecutive days on the 2nd and 3rd when the domestic stock market opened, and the KOSPI rebounded 1.79% on the 3rd, which was one of the themes led by the game industry.
Although it is possible to aim for the base effect caused by excessive falls, it is clear that the game industry will receive attention from investors again only if the goals set by each company, such as the release and success of expected films, the effect of cost reduction through restructuring, and the use of opportunities for blockchain and cryptocurrency rebound, are properly achieved. We look at the outlook for this year through the year-long fluctuations in stock prices of major game companies.
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Krafton was the only major game company to see its stock price rise when it compared its closing price on Jan. 2, 2024, and Jan. 3, 2025.
It started at 195,800 won in early 2024, but rose 71.09% over the past year, hitting 335,000 won on the 3rd. In particular, it rose 5.85% on the 3rd alone, proving that it is also the best expected stock this year.
Although it has been in its eighth year since its launch, it has been more prominent in the sluggish domestic market last year thanks to the strong cash cow called 'Battlegrounds'IP, which is still showing solid sales growth online and mobile. The market capitalization also surpassed KRW 16 trillion again, ranking 89th overall in the KOSPI, further widening the gap with the market capitalization of Netmarble and NCsoft, which are in the second to third positions, and securing their status as a domestic 'game leader'.
Given that stock prices reflect future values, expectations for new works such as 'Dark & Darker Mobile' and 'Injoi' are also high. As a Krafton, if the two works are successful, it will be able to reduce its dependence on 'Battleground'IP and have an opportunity to have multiple sales sources, while also securing momentum to lead new technologies such as launching and expanding games using AI (artificial intelligence).
Nexon, which is listed on the Tokyo Stock Exchange, is still the top market cap in terms of Korea game companies with a market capitalization of 2.19 trillion yen (about 18.73 trillion won) as of December 30 last year, but the difference with Krafton has narrowed significantly due to reasons such as a drop in the yen's value. Last year, it is expected to be the first Korean game company to surpass 4 trillion won in annual sales, but the stock price has fallen 12.76 percent on a year-on-year basis. In addition to the 'Dungeon & Fighter Mobile', which is still at the top of sales since its launch in China last year, if one of the most anticipated films of the year, 'First Busker: Kazan' and 'Mabinogi Mobile' are successful, it is expected to approach the era of 7 trillion won in sales in 2027 as declared by Nexon CEO Lee Jung-hun.
Netmarble, which turned around in a year-round surplus with 'Only Level Up: Rise' released last year after escaping the quarterly deficit in the fourth quarter of 2023, showed a 9.48% drop throughout the year, but it has firmly maintained its second-largest market cap, with the 52-week high exceeding 70,000 won. This year, with the release of PC and console versions of 'Nahonleb', expected works such as 'Mongil: Star Dive' will be released as planned, and Netmarble Neo will be ready for listing.
|
NCsoft was a game company that represented the difficulties of the domestic game industry last year, with its stock price falling to 21.25% due to a decrease in sales of LineageIP.
In order to overcome this, the government plans to overcome the crisis by attempting the most changes since its foundation, including massive restructuring and the spin-off of four development studios, and this year, with new works such as 'LLL' and 'Taektan' as well as services such as 'Lineage 2M' and 'Blade & Soul 2' that have been sold in China. Kim Taek-jin, co-chairman of Park Byung-moo, also expressed his rather grim New Year's address, saying, `Let's make efforts to cut bones thinking that there will be no future if we don't make a turnaround this year.'
Pearl Abyss is also struggling, with its stock price falling by 25.91% due to a drop in sales of 'Black Desert'IP. In the end, it is a common task that we have no choice but to escape the crisis with new works. Triple-A new work 'Red Desert', which has been hard-working for the past six years, will be released in the fourth quarter of this year, and sales and stock prices are expected to draw an upward curve again if they show up as scheduled and perform as expected.
Kakao Games also saw its stock price fall 36.37% due to a sharp drop in sales and operating profit, with its stock price, which had exceeded 110,000 won in 2020, falling to its lowest price since its listing last year. However, while 'Path of Exile 2', which was released in December last year, is receiving good responses in the market, if highly anticipated new works such as 'Chrono Odyssey', 'Archie Age Chronicle' and 'Valhalla Survival' lead to box office this year, it can be expected to turnaround this year.
The rebound in the blockchain and cryptocurrency industries led by the second Trump administration is certainly a boon for game companies that are actively developing related industries at home and abroad, such as Com2uS Group and WeMade. Although it is not easy for P2E games to be serviced in Korea this year, it is highly likely to attract attention again in the global market, so we are preparing a number of new products that have added this function to the existing IP. Action Square, joined by Jang Hyun-guk, former CEO of WeMade, who led the WeMix project at WeMade, is expected to jump into the blockchain industry anew, and its stock price more than tripled compared to early December last year.
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This article was translated by Naver AI translator.
