Webzen continues to face prolonged poor performance due to delays in new game releases. The company reported declines in both revenue and operating profit for the third quarter of this year, as it has failed to secure a new hit title to offset falling sales from existing games.
On November 6, Webzen announced that its consolidated revenue for the third quarter was 36 billion won, with an operating profit of 5.3 billion won. This represents a year-on-year decrease of 17.8% and 29.3%, respectively, while net profit fell by 40.1% to 5.2 billion won. A company representative stated, "The ongoing absence of new titles has impacted sales both domestically and internationally."
Webzen has relied on games utilizing its 'Mu' intellectual property (IP), such as 'Mu Online' and 'Mu Origin,' along with long-standing titles like 'Metin2' to generate revenue. However, it has not been able to secure a new blockbuster to compensate for the decline in sales from existing games.
In the third quarter, revenue from the core 'Mu' IP was 22.3 billion won, down 17.7% from the same period last year. The 'Mu' franchise accounted for 61.9% of total revenue, still representing over 60% of Webzen's sales. Other major titles also continued to underperform, with 'R2' revenue at 2.9 billion won, a 28.5% decrease year-on-year, and 'Metin2' down by 9.7%. Revenue from other games also fell to 2.2 billion won, a 32.9% decline compared to the previous year.
International sales for the third quarter were 18.4 billion won, a 23.0% decrease from the same period last year. The share of international sales in total revenue dropped from 55% last year to 51% this year.
Interest is growing in Webzen's potential for performance improvement following the return of its largest shareholder, Chairman Kim Byung-kwan, to management after nearly a decade. Kim stepped back from management in 2016 to enter politics but returned as an inside director in December last year and became chairman of the board in March. However, the company noted that Kim is primarily serving as an advisor on investment and management strategies for the executive team.
Webzen has been working to secure new titles through both in-house development and external investments, but has not achieved significant results. The development of its self-produced subculture RPG 'Terbis' has been delayed, as it entered additional development after a closed beta test in June last year, pushing back its originally scheduled release from 2025.
Webzen is also facing challenges from a dispute with Hound13, the developer of 'Dragon Sword.' The company invested 30 billion won in Hound13 and launched 'Dragon Sword' in January, but has since become embroiled in legal disputes over the validity of their publishing contract. In July, a court dismissed Webzen's request for a temporary injunction against its own game publishing, complicating matters further.
Webzen plans to address its poor performance by launching new titles next year. At the upcoming G-Star 2026 game exhibition, the company will showcase a demo version of 'Defense Game Tyrant: Last Stage,' an RPG based on a Naver Webtoon IP. Webzen aims to release 'Defense Game Tyrant' in the first half of 2027.
Development of new titles utilizing the core 'Mu' IP is also ongoing. Webzen plans to unveil a teaser video for 'Mu Theos' at G-Star. Additionally, it is preparing a new project called 'Project G,' targeting Western markets through its subsidiary Webzen Red Star. The company aims to expand its revenue base by broadening the use of existing IP while securing new IP.
* This article has been translated by AI.
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