2Q11 game industry 'earnings shock' may not be the end

In the second quarter of this year, domestic game performance is a 'earnings shock' in a word. Major game operations, including 3N, has almost crashed almost anything. In the case of sales, the increase in increasing decline depending on the company, but operating profit was greatly reduced, and considering sales declining and considering sales declines, operating profit declining increased.

What is the cause? For each company, the details are different, but the reason is compressed in several ways. In the case of this year, IT industry salary impressions, including the game industry from the beginning of this year, to factors. A representative case is a pulse of 48.5%, which has increased by 48.5% rather than a previous year. However, as a whole in the domestic game company, it is not likely to be similar to the number of labor costs or labor costs, but the bis is a temporary benefit payment, and labor costs are significantly increased due to temporary benefit payments. Increased labor costs due to the annual relay of the salary, is difficult for earnings shock reasons to penetrate the entire game company.

Causes of more important than labor costs are marketing costs. The increase in marketing costs means that the game industry has been competitive overall. In more detail, two factors have had a direct impact. One is expanding global, and another is increasing the marketing expenditure period. Among them, 'global enlargement' is further analyzed as a greater impact.

The main game company, which has a great increase in marketing costs and increasing marketing costs, is NCsoft, Com2us, Cacao Games, Pulse Bis and Game Bill. First, NCsoft launched Lineage 2M in Japan, Taiwan, and Marketing expenses increased by 331% from the previous year. Caucasu is a Marketing cost of 112.8%, and the Marketing costs increased by 112.8%, and the Marketing Beaters and European Services in the Black Desert North American, and European Self Services, respectively, increased by 310.9% and 42.1%, respectively.

In particular, in the case of Cacao Games and NCsoft, the main title of the main title and its representative new Odin: Ballage, and 2 marketing time, and the two marketing time are overlapped, the relevant marketing costs have increased significantly. Conversely, in the second quarter, Joy City, Nexon Kiti, and the other, based on the existing work of the existing work, which has been a service that has been service for many years, and the marketing costs were small, and the Sunday Tose has a large cost of ad sales in the game that does not have a large cost. The increase has contributed to the rise in profits.

The second part is that the period of expensing marketing costs is also increasing. In the past, we focused on marketing expenses immediately after the launch, and after the marketing ratio was turned on, the marketing costs were reduced from the next quarter. However, the current marketing costs are maintained even after a certain scale. Mobile market competition is intensified and marketing for new user attracting is that it has been able to maintain existing levels of performance.

Based on the game that has been released in the beginning of last year and early this year, the cost of Made and Devs Sisters Marketing costs a relatively similar level compared to the past two quarters of the year. We launched Muack Angel in the second quarter of last year, and Webzen, which had no new release in the second quarter of this year, has been in the level of 7% on the marketer than the previous year.

In addition, the development of Corona 19 and telecommuting is delayed, and the release of the release was delayed and affected the increase in marketing spending period. NCsoft's Block 2, Trickster M launches, and it is necessary to take advance reservation marketing more longer than scheduled. In addition, in other aspects, Netmarble and Cacao Games were the main new in the first half of the second countries and Odin: launched in the second quarter of 2Q. In particular, netmarble has occurred in the first quarter, and it was found that the production and release delays have had a direct impact on the occurrence of space.

One concern is that the earnings shock may not be the end of 2Q. Marketing ratio is because it is a temporary phenomenon. The global game market is done in saturation. Global Market Research Agencies New Games predicted that the global game market in the year will decline by 1.1% from last year. Domestic market is also expected to be in the growth rate of 7% (2020 game white paper) this year.

In order to take up a lot of pies in a limited market and maintain this, we have to take a bigger and more long-term marketing to secure the user. It is impossible to reduce marketing costs to survive in the market. It has a basic game in the domestic game store, and the reason why the PC, console, and a non-game advance to advance is that it is a survival strategy to increase the pie itself that can be eaten.