Mobile game company Com2uS, which is highly dependent on mobile game sales, plans to diversify its platform by preparing new titles for consoles and PC this year. Currently, 33 mobile games from Com2uS account for about 80% of its total revenue. However, amid the poor performance of the media subsidiary acquired by Com2uS in 2021 and the ongoing recession in the content industry, it is expected to be difficult to surpass the break-even point this year.
According to a quarterly report from Com2uS on the 17th, among the 503.5 billion won in operating revenue in the third quarter of last year, the amount attributed to mobile games was 417.5 billion won, accounting for 82.9% of the total. The percentage of operating revenue from mobile games has shown an increasing trend, recording 70.7% in 2022 and 73.7% in 2023. The report states that Com2uS currently operates 33 mobile games, with "Summoners War: Arena of the Sky" and its baseball game lineup serving as cash cows.
In addition to the existing games it operates, Com2uS plans to release new titles, including the globally launched mobile idle role-playing game (RPG) "Gods and Demons" and games based on its baseball franchise and Summoners War intellectual property (IP).
Recently, the topic of business diversification through a "multi-platform" strategy has gained traction in the gaming industry, prompting Com2uS to accelerate the launch of new titles for consoles and PC. The massively multiplayer online role-playing game (MMORPG) "The Starlight," developed by Game Tales and published by Com2uS, is set to be released in the second half of this year for PC, console, and mobile versions.
However, it seems to take time for the media subsidiary's performance to stabilize. Com2uS operates WYSIWYG STUDIOS and MyMusicTaste under its umbrella. WYSIWYG STUDIOS is engaged in celebrity management and content production. Comedians Taxes and Ji Sang-ryeol, singer Ailee, and actress Ko Yoon-jung are affiliated with WYSIWYG STUDIOS. Com2uS acquired WYSIWYG STUDIOS in 2021. MyMusicTaste is a company that plans concerts and festivals.
The securities industry analyzes that Com2uS’s gaming business profits are offsetting losses in its content business. According to the industry, the operating losses of Com2uS’s media subsidiary are expected to decrease from 53.2 billion won in 2023 to 24.4 billion won in 2024, but it is determined that it will not reach the break-even point. The content industry anticipates difficulties in recovering investment due to a recession this year, which may lead to reduced drama scheduling and advertisement production.
Kim Hyun-yong, a researcher at Hyundai Motor Securities, noted, “While Com2uS is expected to achieve significant profit increases in its gaming business, projecting an operating profit of 50 billion won and an operating profit margin of 7.7% in 2025, the consolidated operating profit is expected to fall below market expectations at 35.6 billion won.”