“One Store is expected to surpass its monthly breakeven point (BEP) and turn a profit in September,” said Jang Hyun-guk, CEO of Nexters. He has moved up the timeline for achieving BEP from the end of the year to September, citing recent expansions in new content and exclusive games that have enabled faster profitability improvements. Additionally, the global launch of One Store in 124 countries at the end of this month will accelerate its transformation with a focus on AI and blockchain games.
In a recent interview at Nexters' office in Pangyo, Jang discussed the company's plans for profitability improvement and global platform transition following the acquisition of One Store. Nexters completed the acquisition of One Store in June and is now accelerating its efforts to enhance profitability and restructure its business.
As a domestic app market, One Store has faced challenges against global competitors, reporting sales of 113.3 billion won and an operating loss of 9.6 billion won last year. Since acquiring One Store, Nexters has been implementing new content and exclusive games starting in July to improve profitability.
“A month ago, I said we would achieve monthly BEP by the end of the year, but now I can confidently say it will be in September,” Jang stated. “By September, we will not only achieve a monthly turnaround but also expect to turn a profit in Q4, with an annual profit expected next year.”
Jang envisions Nexters as an 'AI and blockchain game platform.' When planning new business initiatives for Nexters by the end of 2024, he initially considered a blockchain game platform, later expanding the vision to include AI as it emerged as a new technological paradigm.
He believes that first-mover advantage is particularly significant in the platform market. As seen with platforms like Steam, Google Play, and the App Store, user and content concentration occurs in platforms that dominate specific markets. Therefore, establishing a platform in the AI and blockchain game sector is crucial.
Nexters has been building its mainnet, wallet, game token and NFT exchange, and community, and secured game distribution and payment capabilities with the acquisition of One Store. The global service is set to launch in 124 countries at the end of this month, just two months after the acquisition.
Jang also plans to change One Store's differentiation strategy. He noted, “One Store has competed with low fees and point benefits, but this approach alone has limitations for growth.”
Instead, One Store will highlight AI and blockchain games as unique content that cannot be found on Google Play or the App Store. He emphasized, “There must be content that is not available on the App Store or Google Play, and I see AI and blockchain as that content.”
After the global launch of One Store, the challenge will be how many actual users can be attracted. It is essential to create reasons for overseas users of existing app markets to install One Store separately. Jang views user acquisition as key to establishing a foothold in the global platform market.
He is looking to Steam as a reference for acquiring global users. Unlike existing app markets that secure users based on specific operating systems, Steam has grown its user base by gradually adding games on an open platform. One Store aims to attract users with AI and blockchain games, creating a network effect that increases game supply.
“We need to have answers on how to secure platform users,” he said, adding, “In the competitive global market, game content will ultimately become crucial.”
The AI creation game section opened in early August is one of the content areas where One Store can differentiate itself from existing global app markets. It allows individuals to create games using AI and share them on One Store, establishing a new foundation for game supply.
In the long term, One Store aims to grow platform fees as a primary revenue source. The plan is to expand the revenue structure centered on fees from game and app distribution and game item transactions.
Currently, One Store's distribution fees are around 10 billion won per month, while game item transaction fees range from 100 million to 200 million won. Jang anticipates that as item transactions expand, related fee revenues will grow to match distribution fees.
In AI games, he sees potential for monetization not only through in-app purchases and advertising but also through the game creation process itself. He envisions charging for the usage of large language model (LLM) tokens and production support features, potentially linking this to a subscription model. “We can create a revenue model from the production itself by supporting users to use more tokens or create better games,” he explained.
The organizational integration of Nexters and One Store is also underway. Jang stated, “Ultimately, we are a company that is creating a single platform, so we are considering merging into one company,” adding that depending on technical reviews, this could happen as early as the end of this year or next year.
Meanwhile, Jang expressed lingering regret over his experience leading the WEMIX project at Wemade. He said, “I feel sorry for those who invested in WEMIX and for the employees and partners I worked with. The successful experience with WEMIX confirmed the potential of blockchain games, and both successes and failures are now integrated into this new project.”
Jang believes that the success of the AI and blockchain game platform must be demonstrated through user engagement and results. “If we show that playing AI games leads to growth and results, and that going global with blockchain games connects to growth and results, the market will believe it,” he concluded.
* This article has been translated by AI.
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