On the Radar: Nexon

Introduction

Nexon generates most of its revenues in the large South Korean and Chinese online game markets, and also has a significant presence in Japan, the US, and Europe. It is unlikely to threaten telco players’ voice or messaging revenues, and has demonstrated a willingness to collaborate with carriers on mobile game services under the right circumstances.

Highlights

The online game industry will most likely remain Nexon’s main focus for the foreseeable future. This core business is highly profitable (its 2Q12 operating margin was 47%), mainly due to the company’s online gaming strength in South Korea and China.

Nexon is also increasing its presence in mobile gaming, initially focusing mainly on the South Korean and Japanese markets, where there is significant potential for growth.

Features and Benefits

  • Understand why Nexon is less a direct threat to most network operators than a potential partner.

  • Learn the strengths that explain why Nexon would be a good partner for any service provider looking to add online gaming into its portfolio.

Key Questions Answered

  • Why should companies such as Nexon be at the top of the list for potential partnerships?

  • How does Ovum expect Nexon to further grow its business beyond its current key Asian markets?

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