Asian free-to-play gaming giant Nexon reported second quarter revenues and earnings that underscore its proven business model, the company announced today. And the main firepower behind the company’s financials come from online games that are more than a decade old.
Once again, it makes you wonder if free-to-play games, where you play the game for free and pay real money for virtual goods, can be a far better business model than selling games at retail for $60 each, as is popular in the West.
Revenue in the second quarter was $430.5 million, up 2 percent from the same quarter a year ago. Net income was $290 million in the quarter, up from $173 million a year earlier. The company said the results underscored the company’s strength in live services for ongoing games and validated its business model. But the company also got a big boost from a favorable value for the U.S. dollar.
Dungeon Fighter and MapleStory are both more than 10 years old, but they continue to grow in both players and revenues. Dungeon Fighter Online, known as Dungeon & Fighter in South Korea, continues to engage players in China, while MapleStory showed particular strength in South Korea, where it grew 61 percent in the quarter compared to a year earlier.
“Nexon’s second quarter truly showcases the company’s strength in live services and game operations as it validates our model,” said Owen Mahoney, CEO of Nexon. “We are seeing continued growth in player numbers and revenues from our original intellectual…