JoyCity has moved onto a track for a rebound in results, supported by the success of a new title. 'Biohazard Survival Unit', launched globally in November last year, delivered better-than-expected performance and secured growth momentum. With 2 new titles slated for release in the first half also joining the lineup, the likelihood of a turnaround this year is rising.

According to the industry on Feb. 11, JoyCity’s revenue fell for 4 consecutive years, but a rebound is expected this year. Signs of improvement have been clear since the fourth quarter of last year. On a consolidated basis, fourth-quarter revenue was 48 billion won and operating profit was 2.7 billion won, up 44.2 percent and 32.7 percent, respectively, from a year earlier. The increase reflects the full impact of the global launch of Biohazard Survival Unit.

Biohazard Survival Unit, co-developed by JoyCity and Aniplex, topped popularity rankings on Google Play in the United States and the App Store in Japan shortly after its launch in 151 countries in November last year.

Shinhan Investment Corp said the game recorded average daily payments of 300 million to 400 million won in its early launch period, the best performance among JoyCity’s new titles to date. JoyCity implemented Capcom’s flagship intellectual property (IP) 'Biohazard' universe in the strategy simulation genre, where the company has shown strength. Given the nature of the strategy genre, the structure allows for a sustained increase in users and average revenue per user by strengthening marketing and its business model. JoyCity announced on Feb. 6 that global cumulative downloads surpassed 5 million. That was about 80 days after the global launch in November last year.

In particular, official launches in the South Korean and Taiwanese markets on Feb. 5 are expected to have a direct impact on improving results. The two regions have high preference for mobile games and higher average revenue per user than Western markets. In fact, a day after launch, the game ranked No. 1 in strategy games on the App Store in Taiwan and Hong Kong and No. 2 on Google Play, and on Feb. 9 it topped Hong Kong’s Google Play free games ranking.

An analysis says the co-publishing model is also contributing to improved profitability. The structure has JoyCity sharing costs with Aniplex while taking sole responsibility for content balance management and marketing. JoyCity has proven operational know-how in the strategy simulation genre from 'Pirates of the Caribbean' and 'Gunship Battle'. It can improve its operating profit margin by receiving settlement of net revenue excluding IP and platform fees.

The new-title lineup slated for release in the first half is also set to strengthen performance momentum. 'Freestyle Football 2', under development by JoyCity subsidiary URE, successfully completed a global closed beta test on Feb. 2. Users in North America and Europe, key console game markets, participated in large numbers in the test, which ran for 4 days from Jan. 30.

The game delivered high-quality graphics using Unreal Engine 5 and provided stable cross-platform support between Xbox Series X|S and PlayStation 5. Participants continued to praise its immersive one-player, one-character control system and 5-on-5 strategic team play. JoyCity is continuing development with the aim of a simultaneous launch in the first half of this year, including a day-one release on Xbox Game Pass, reflecting feedback collected during the test period.

On Jan. 29, it signed a publishing contract for 'Project Imjin', a war massively multiplayer online role-playing game (MMORPG) being developed by RedZinc Games. The game, overseen by director Tae-gon Kim (김태곤), who produced 'Imjinrok' and 'Cheonha Jeil Geosang', is currently undergoing its second alpha test and is slated for release on mobile and PC platforms in the first half of this year. JoyCity plans to seek a foothold in the domestic market based on its operational know-how in war simulation games such as 'Gunship Battle: Total Warfare' and 'Pirates of the Caribbean: Tides of War'.

Brokerages are viewing JoyCity’s results improvement this year positively. Shinhan Investment Corp forecast JoyCity will post revenue of 170.3 billion won and operating profit of 26.4 billion won this year. That would be increases of 21.5 percent in revenue and 421 percent in operating profit from a year earlier. It said the operating profit margin is expected to recover to 15.5 percent.

Seok-oh Kang (강석오), an analyst at Shinhan Investment Corp, said, "'Biohazard Survival Unit' is delivering the best performance among new titles to date." He added, "As strengthening marketing and the business model accelerates, the genre can boost revenue and margins together through higher average revenue per user and new user inflows, so its growth potential is very large."