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Research Article

Reorganization and Challenge of Online Game Business: A Study on Nexon

Jungjoo Jahng1 · Kim Taekyung1 · Hyunyung Jang1

1 Seoul National University

Published: January 2009 · Vol. 12, No. 3 · pp. 111-133
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Abstract

The online game market in Korea had been radically expanded from the late of 1990s to the mid-2000s with commercial success of Starcraft by Bllizard Entertainment and Lineage from NC Soft. The most of game developers in Korea focused their positions on how their games resembled Lineage, which had known to “Big Shot Game” type of MMORPG (Massively Multiplayer Online Role-Playing Game), as a measurement of success. Even though the market growth was incredible, game developers suffered from fierce competition soon due to the lack of diversity of revenue models. Then, Nexon launched “Crazing Kart Rider” the game, which was a clever reposte enough to be over common practice that a racing game is not compatible with online environment in terms of Big Shot Game. New strategies of Nexon included 1) mixing charged items with free service and items, and 2) one-source-multi-use. Those were so innovative that online game industry came to rethink their business practice. But, Crazing Kart Rider came to be confronted by new challenges from rising of game portal and penetration of traditional game console manufactures from 2007. This case study is helpful to make business practitioners to discuss with success factors of Nexon and to find feasible strategy to gain sustainability in the online game industry.
Keywords: 넥슨온라인 게임 산업플랫폼 경쟁