Will 'Red Desert' Game Revive the Gaming Industry Amidst Clouds? Expert Analysis Revealed

Analysis of the Game Industry

• The game industry is a key focus in the third quarter for investors and analysts.

• Different game companies have varying strategies and product launches lined up.

• The performance of game companies is expected to improve in the third quarter compared to the second quarter.

• Examples include Craft On's peak season for the PUBG IP and Pearl Abyss's increased traffic for the PC version and Black Desert.

• Costs were high in the second quarter, but there is potential for turnaround and improvement in the third quarter.

Analysis of the Game Industry

Analysis of New Game Release and Stock Reaction

• The upcoming year holds potential for new game releases, which can significantly impact the gaming industry.

• A recent video release from Pearl Abyss Veil has caused a significant drop in stock prices for the company.

• The response to the video quality from game YouTubers and the community has been positive, with strong viewership numbers.

• However, concerns about the writing and related risks to the game release schedule have also emerged, impacting market sentiment.

• The stock reaction is being attributed to profit-taking and some disappointment due to unmet expectations for the game Red Desert.

• Despite the positive feedback on video quality, the overall market sentiment and concerns about the game's release schedule are affecting the stock performance.

Analysis of New Game Release and Stock Reaction

Analysis of Game Development Progress and Market Expectations

• The video has been edited to showcase various aspects of the game, including combat elements and graphics, but it indicates that the game development is still far from completion.

• The release schedule appears to be delayed due to the need for further development, making it unlikely to be released in the first half of next year.

• The marketing momentum is expected to pick up in the second half of this year following the release of the video, and there are possibilities for momentum play with strategies such as resolving Woo Yoon's.

• The performance of gaming stocks is showing a generally positive trend, with Krafton being a top pick for the researcher in the 3rd quarter due to its performance in the 2nd quarter.

Analysis of Game Development Progress and Market Expectations

Analysis of Company's Market Position and Future Prospects

• The company's valuation, at about 13 times the market capitalization compared to this year's net profit estimate, is considered highly attractive.

• Concerns have been raised about discounts, with the company's stock being traded at a lower value.

• There is a risk factor called Jira that needs to be considered regarding the company's performance and future prospects.

• Traffic and sales in the Chinese market are reported to be declining, leading to concerns about the company's future growth potential.

• Despite decline in the Chinese market, new user traffic from regions such as the Middle East and other new regions is being maintained, reflecting an overall stability in traffic parameters.

• The organizational structure of the company is undergoing changes, with a focus on self-developed new games and efficient release of new works.

• The company is transitioning into a new structure where it will recruit and publish games from developers, indicating a shift from a developer-focused model to a more diversified approach.

Analysis of Company's Market Position and Future Prospects

Analysis of Naver's Clova Integration and Future Prospects

• Naver's stock price has been sluggish after the release of Clova.

• A researcher recently published a report regarding Naver, raising questions about Hyper Club's performance after the release of Clova.

• Clova's integration with the search function is a key focus, evaluating its fit within the cultural and contextual context.

• The newly integrated plug-in called Skill is planned to be linked to Naver's own reservations, shopping, and external services like Socar in the future.

• The reservation shopping feature of Clova currently offers a smooth flow from consumer search to the final goal, indicating satisfactory performance without concerns so far.

Analysis of Naver's Clova Integration and Future Prospects

Conclusion:

The game industry is poised for a potential resurgence as 'Red Desert' game's release looms. While concerns and market reactions cast shadows, the game's development progress and market expectations signal opportunities for gaming stocks. Stay informed about the company's position and future prospects amidst the evolving game landscape.