Nexon to Launch Dungeon & Fighter Mobile Game in China on May 21

Nexon's Dungeon & Fighter mobile game set to launch in China in 2024, expected to generate $600M-$1.1B in annual revenue, boosting Nexon and Tencent's stock prices.

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Salman Khan
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Nexon to Launch Dungeon & Fighter Mobile Game in China on May 21

Nexon to Launch Dungeon & Fighter Mobile Game in China on May 21

Nexon, a leading South Korean online gaming company, announced that it will release the highly anticipated mobile version of its popular game Dungeon & Fighter in China on May 21, 2024. The game, developed in partnership with Chinese tech giant Tencent Games, has already seen success in South Korea since its initial release in 2022.

The original Dungeon & Fighter game, launched in 2008, has amassed over 850 million users worldwide and is considered one of the most lucrative computer games in history. The mobile adaptation, titled Dungeon & Fighter Origin in China, aims to tap into the massive mobile gaming market in the country.

Nexon stated that it will first optimize the game for advanced gaming circumstances and improve user experience before releasing the title in China. The company has been developing the mobile version for seven years, and it received government approval in China after an initial revocation in 2017.

Why this matters: The release of Dungeon & Fighter Mobile in China is expected to generate significant revenue for both Nexon and Tencent. Analysts estimate the game could earn between $600 million to $1.1 billion in annualized revenues, potentially securing a top 5 spot in the country's mobile game rankings.

Tencent recently conducted a closed test with 300,000 players, which yielded promising results according to HSBC, with strong performance across metrics such as daily active users, retention rate, and user spending propensity. "The game's release in China comes after a freeze on new game approvals was lifted in 2022, and a more conciliatory tone from the Chinese government emerged in late 2023," said a Nexon representative.

The news of the game's release has led to a surge in both Nexon and Tencent's stock prices, with Tencent's shares seeing their biggest one-day gain in nearly a year. The earlier-than-expected launch is seen as a positive development for Tencent's gaming revenue in the second quarter and beyond, as the company looks to revive its sales momentum after a soft first quarter.

Key Takeaways

  • Nexon to release Dungeon & Fighter mobile game in China on May 21, 2024.
  • The game has over 850 million users worldwide and is highly lucrative.
  • Tencent and Nexon expect the game to generate $600M-$1.1B in annual revenue.
  • Tencent's closed test yielded promising results for daily active users and spending.
  • The game's release has led to a surge in Nexon and Tencent's stock prices.