Witnessing the surging popularity of the internationally popular games like League of Legends and Diablo 3 than they initially expected, the two CEOs of Korea's largest game makers shared the idea that the merger between Nexon and NC Soft should be necessary to compete with global online game behemoths like Blizzard Entertainment -- and to command a larger share in the global stage in future. (Photo: Crazy Racing Kart Rider, one of the best-hit online games created by Nexon)
Seoul, KOREA ¶ Jun 12, 2012 (Whowired) -- After Nexon acquired a 14.7% of NC Soft shares on Jun 8, it has become the biggest shareholder of NC Soft, and the unraveled mammoth to rule Korea’s game industry. Nexon’s revenue last year was 1 trillion 219 billion won while NC Soft’s was 608.9 billion won. The combined annual revenues of the two companies would be roughly three times bigger than the industry’s runner up, Neowiz and it accounts for about 30% of the total revenues of the local online game.
Kim Jeong-ju, Nexon’s founder and Kim Taek-jin(picture), NC Soft’s founder were actually college alumni’s. They went to the same college, Seoul National University and Kim Jeong-ju was two years senior than Kim Taek-jin. They have been close acquaintances since the college days. Kim Jeong-ju jumped into the online game business first as well. He found Nexon in 1994 after finishing a Ph.D at the KAIST. Three years later, Kim Teak-jin established NC Soft.
It is reported that, after seeing that the popularity of overseas games like League of Legends and Diablo 3 has been much hotter than they expected the two most successful self-made men in the country shared the idea that the merger between Nexon and NC Soft is necessary to compete with global online game behemoths like Blizzard Entertainment. Currently, League of Legends and Diablo 3 are competing for the top spot in the local game popularity list, which was once dominated by local games.
Even though Nexon developed super-hit games like Kartrider and The Kingdom of the Wind, Nexon has its biggest strength in publishing games. Nexon also has established a global network of its subsidiary companies such as Nexon Taiwan, Nexon Europe, Nexon Japan, Nexon America. In addition, Nexon is the biggest shareholder of Gamania, the biggest game company in Taiwan. Nexon has more than 30 game developers under its arms. In fact, famous hit games like Sudden Attack, Ion, Lineage, Lineage 2, Dungeon and Fighters have been all published by Nexon.
Meanwhile, NC Soft has been focusing on developing games, and has been extremely successful with mega hit games like Lineage and Ion. NC Soft plans to release Blade and Soul, its next flagship online game, to challenge Diablo 3 by Blizzard. Industry watchers expect that if the two companies successfully join force to create synergy effects from Nexon’s global expertise in game publishing and Nexon’s game developing abilities, there is a strong possibility that the landscape of the global online industry would be completely changed to their interest.
Adrian Han (firstname.lastname@example.org)
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