By Sagar V. Mankar “Dungeon and Fighter: Origin” is the mobile version of the immensely popular multiplayer online action RPG of the same name, developed by the Korean company Nexon.
This action-packed game has been in development for over seven years, and it’s finally set to be released on May 21st through Chinese publisher Tencent.
Why So Much Delay?
The release of DnF Mobile in China was initially delayed due to the Chinese government’s crackdown on the gaming industry between 2018 and 2023.
The government made strict rules for licensing and publishing foreign games in China that put many games on hold and some of them even shut down in process.
But, in February 2024, China softened its stance and granted 32 “Waizi” licenses to foreign games, including Tencent and Nexon’s games.
How Market React to the News?
The “Dungeon and Fighters” franchise is one of the world’s most profitable computer games, and its mobile adaptation has been eagerly awaited by gamers worldwide.
The game’s release in South Korea in 2022 was an instant hit, and its upcoming launch in China, the world’s largest gaming market, has been met with an overwhelming response from the gaming industry.
In February (during license permission) Tencent’s shares rose by 5% (highest since July 2023) and now on Monday morning of the date announcement, it rose again by 4.5%.
Revenue Expectations
Investment bank Jefferies is bullish on the game’s prospects, expecting it to “secure a top 5 spot in revenue rankings” in China and potentially generate between $600 million to $1.1 billion in annualized revenues over time.
However, they also anticipate a “cautious approach to engagement and monetization” during its initial launch.
How Did the Closed Beta Testing Perform?
Last month, Tencent conducted a closed beta test with 300,000 players, and the results were impressive.
According to a note from HSBC, the testing yielded solid performance metrics, including daily active users, retention rate, and user paying propensity.
Source: Reuters