Nexon refocusing on quality after poor Q1 growth

Nexon has promised shareholders to renew its focus on quality this week as its first quarter results show revenue and profit growth have slowed.

The Korean-based F2P publisher earned 47.5 billion yen in revenue ($464 million), up seven per cent year-on-year, but down three per cent on a constant currency basis in the three months to March 31st, 2014.

This was a big decline in growth compared to the first quarter of 2013, when its revenue and profit increased 36 per cent and 19 per cent respectively.

Net profit was 16.1 billion profit yen ($157 million), up seven per cent.

Titles key to Nexon its earnings included Dungeon&Fighter in China, as well as FIFA Online 3 and Sudden Attack in Korea.

But in a statement to investors, CEO Owen Mahoney said there was a need to focus on quality over quantity, which will necessitate the reallocation of resources "to our best games, and cut all others".

Nexon cautioned its shareholders that this change could disrupt revenue and profits in the near future, but said the company stands to benefit in the long-term.

“Going forward, we will sharpen our focus on quality across all platforms. At our core we are in a creative industry, and the only way to succeed is to create high quality games that deliver fun and unique gaming experiences to our players around the world,” said Mahoney, who took up his post in February.