S.Korean games makers fall on launch of new review committee in China

Netmarble

10/12/2018 06:30

(Updates with report, adds analyst comment and shares of
another games maker)
    ** Shares of South Korean mobile games makers drop after
report that Chinese regulators have set up a new online games
ethics committee and reviewed 20 titles already  urn:newsml:reuters.com:*:nL3N1YF1NB
    ** This will have a limited effect on South Korean games
companies, but investor sentiment over games industries will
likely be dented as the launch of the committee itself means
that the Chinese government is aiming to tighten regulations on
the industry, says Kim Hak-joon, an analyst at Kiwoom Securities
    ** Netmarble Corp  251270.KS  falls as much as 8.9 pct to
its lowest since Oct 30
    ** Webzen Inc  069080.KQ , which offers MU Origin game in
China, declines as much as 13.6 pct
    ** WeMade Entertainment Co Ltd  112040.KQ  also declines
sharply
    ** Initial performance of Netmarble Corp's new mobile game
Blade & Soul Revolution, the most anticipated game of the year,
did not meet expectations, hovering below the overall level of
MMORPG performance in 2017, adds Kim
    ** While the early network traffic state of the new game is
below expectations, whether there is a network traffic reduction
on Tuesday will be the key to evaluate the success of the game,
says Hwang Seung-taek, an analyst at Hana Financial Investment
    ** Shares of Netmarble tumbled on Thursday, right after the
release of Blade & Soul Revolution due to technical errors
 L4N1YB0A9 
    ** Broader market  .KS11  down 1.1 pct as of 0617 GMT

 ((Reuters Messaging: joori.roh.thomsonreuters.com@reuters.net))