It’s been a disappointing financial quarter for investors in the Kakao gaming stock as the Q2 report showed sharp declines in revenue. The overall performance of the company managed to stay above the tide.
According to a detailed insider report, Kakao experienced impressive growth so far this year with margins showcasing a double-digit increase. At the investor call, the general report was well received with merited applause.
However, Kakao Games, the company’s gaming arm, returned a negative report. Details indicate that its Q2 financial performance saw a 20% decline in revenue. The reduction came amidst weak sales from Battleground where user volumes have been on the decline. Gamers have been affected by the absence of uniqueness among MMORPGs.
Another factor that plummeted the revenue last quarter might have been the inability of Kakao to stabilize its existing titles. The game developer has at least three games in play and another two in the works. Users’ dissatisfaction can often lead to abandonment if common bugs are not quickly resolved.
In addition, the company is still recovering from the problems of ArcheAge War. During the investor call, the company shed some light on future releases, namely ArcheAge 2 and Ares: Rise of Guardians.
That said, there is good news for ArcheAge fans as the studio has projected the arrival of ArcheAge 2 in the second half of 2024. Kakao Games also outlined that the Unreal Engine 5-powered sequel will be coming to both PC and consoles.
Finally, Ares: Rise of Guardians, the MMORPG which was launched in South Korea at the end of July, has been confirmed for a global launch very soon. Even though we have no idea of the exact dates or which countries will be involved, it would appear that KaKao will be monetizing the game. It will “reduce compulsory initial billing” with microtransactions added once “many users” have settled into the game.