Game Development Cost Increase vs. Game Stock Investment, NCsoft

Game Development Cost Increase vs. Game Stock Investment, NCsoft

As the cost of game development has increased outrageously, developers have to make safe choices. Relying on proven IP and fandom. The cost of developing AAA-class titles is more than 300 billion won. <Cyberpunk 2077>, <Marvel's Spider-man 2>, and <Red Dead Redemption 2> have spent $300 million.

It's $300 million, and 300 billion won is not the name of anyone's dog.

If you do this and fail, it's not like you're really reeling from the company. So, I understand Tencent vice president saying, "It's getting harder to take risks."

On top of that, users are also becoming cautious about spending. They are secretly sensitive to metacritic 90 point over/under, and it is inevitable that the increase in game development costs will lead to consumer transfer to game prices. Purchase is bound to be hesitant.

Can we convince users with quality?

"Final Fantasy 6" released the game at a very high price of about 120,000 won (217,000 won as of 2024 given 2% inflation) in 1994, but it convinced users of the quality. When talking about the best Final Fantasy ever, 6, 7, and 10 must be mentioned. It is a story that had a strong impact.

However, the fact that this is a story itself is not common in the first place, so it becomes a hot topic.

In addition, Nintendo controlled the price of romp packs by abusing game companies through the exclusive status of Super Famicom, so the common case was never to be,

Nintendo's status at the time was at Apple's level.

Then it's a casual game that's worth looking back on. Casual games are definitely less burdensome than AAA games.

By the way, is the development cost low because it's a casual game? I think development costs will start to become a hot topic in casual games.

Deb Sisters' recent release, Cookie Run: The Witch's Castle, gave a boost to animation and art. These are all development costs. I personally thought no one could deny that Dev is Korea's best casual game developer after watching these animations, but... box office is another matter.

Probably, Kang Seok-oh's estimate of half a billion won in daily sales and Kim Ha-jeong's estimate of 100 million won. (Inaccurate. Depends on memory.)

It is said that Return is not necessarily proportional to the development cost, and the user's eye level is gradually increasing.

Therefore, developers think that development costs are increasingly completely AAA games, so there is only one option to satisfy the users' eye level or turn to a casual game.

Final Fantasy 16 shocked the world with its graphics and directing levels when the demo was released. The game's development cost is W100 billion.

However, if it's worse than this, it can't be said to be an AAA-class game. In addition, the development cost of "Throne and Liberty" was 100 billion won.

The reason I don't like NC is simple. Is it possible to provide better quality than Square Enix.

NC's Peer Group is Square Enix. This is because the sales are concentrated in certain genres, such as MMORPG Exposure. Square is JRPG and NC is LineageLike.

So can NC really do better than Square Enix? I think so until 2020. However, since then I've answered no to this, so I think Square Enix is right for NC Salva.

We have confirmed that the quality of competing with console AAA is ambiguous, and that the return is not significant compared to the development cost.

Therefore, I think NC is still expensive. If it's less than 140,000 won, it's still worth seeing it from a buying point of view because of its value...

If NC can't answer the question for sure whether it can do better than Square Enix, I think it's right to just buy SENIC. If you can't answer this question and buy NC, you just throw your money into the sewer.