Market Insight

Nexon cancels development of Titanfall OL

July 17, 2018

Chenyu Cui Chenyu Cui Senior Research Analyst – Games, IHS Markit

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The freemium version of Titanfall was designed exclusively for Asian markets with development handled by Nexon GT, specifically the team responsible for Sudden Attack. The agreement to cancel Titanfall OL was co-announced by EA and Nexon, while the was still in closed-beta testing and yet to have been officially launched. The two companies will continue to work on FIFA Online 4, as well as new products.

We believe the cancellation is due to the success of battle-royale titles and their impact on the shooter segment. Indeed, Nexon is learning lessons from the failure of Sudden Attack 2. In 2016, the strong performance of Overwatch led to growing pains for the newly-launched Sudden Attack 2, which had high expectations for revenue growth but ceased service after just three months’ operation. With such a large scale of marketing spend and dev costs in tow, the closure of Sudden Attack 2 put great pressure on Nexon’s pipeline.

The phenomenal performance of something like PUBG also puts sizeable pressure on shooter titles in South Korea, and so it wouldn't be surprising to see Titanfall OL’s launch fail to garner much initial success. In addition to the intimidating presence of battle-royale games, negative feedback from players during the beta phase further reduced Nexon's confidence in rolling out Titanfall OL, so it's a sensible decision to shutter the game before invoking major marketing costs, and such. As a result, we expect FIFA Online 4 and Dungeon & Fighter to drive Nexon’s revenue in the remainder of 2018.

Geography
South Korea
Organization
Electronic Arts Nexon
Research by Market
Media & Advertising
Category
Games
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