Nexon has released its financial report for the first quarter of 2024 (since the studio operates on a January to January basis in fiscal year terms), and apparently, The Finals isn’t performing as hoped.
In its earnings letter, Nexon reports a drop in revenue of around 13% when compared to the first quarter of last year, as well as a precipitous fall in operating income of around 48%.
The studio puts that deficiency down to “lower consumer spending, rising costs, and an anticipated one-time loss”, although it does say that its revenue and income were “stronger than expected”.
This performance, Nexon says, is down to the success of EA Sports FC Online, which is available across several Asian markets, as well as EA Sports FC Mobile, a free-to-play version of EA’s wildly successful soccer game.
Nexon also points to the strong performance of gacha RPG Blue Archive as a reason for its financial results exceeding expectations in 2024’s first quarter.
Together, these three titles make up for what Nexon calls the “lower-than-expected performance of The Finals“. According to Nexon, the game’s second season, which launched in March, temporarily boosted player numbers, but “delivered lower-than-expected retention and revenue”.
Despite The Finals‘ underwhelming performance, Nexon says it still expects the game to help drive a revenue increase on a year-over-year basis in 2024’s second quarter, at least in North America and Europe.
When it comes to Nexon’s future, the company says it’s releasing major updates for “all of [its] flagship franchises” in the second quarter of 2024, including The Finals and EA Sports FC Online.
Additionally, new games like The First Descendant, MapleStory Worlds, and the Chinese release of Dungeon&Fighter Mobile are all scheduled for Q2 or thereabouts, so Nexon will be hoping that those releases can turn its fortunes around.
We’ll have to wait and see whether these games represent the sea change Nexon appears to need right now. Stay tuned for more.
