South Korean gaming studio NCSoft stock price spikes 30% amid plans to launch NFT games in 2022

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South Korean game developer NCSoft has announced plans to launch non-fungible token (NFT) -based games in 2022. Hong Won-jun, chief financial officer of NCSoft, said on the earnings call the company’s third quarter on November 11.

According to Hong, the planned NFT game titles will come in the form of massively multiplayer online role-playing games (MMORPGs) with release dates slated for Q2 2022.

NCSoft’s NFT-based game titles will also follow the play-to-earn (P2E) model where players are rewarded for playing the games, in this case with cryptocurrencies. NCSoft plans to create its own crypto tokens to use as a reward for playing the games.

The game maker could also expand the P2E format beyond its upcoming catalog of NFT-based games, Hong saying, “We are also considering applying the play-to-win game model to all games developed and distributed by NCSoft. “

As part of the announcement, Hong also said that the emerging NFT gaming space will provide a further business growth opportunity for the $ 13.67 billion company.

The switch to blockchain-based games comes after the company lost more than $ 3.7 billion in market value between August and September following the failure of its martial arts role-playing game “Blade & Soul 2 “.

NCSoft’s NFT game announcement received a favorable reception from investors, with the company’s share price rising 30% from 592,000 Korean won (501.57) to 786,000 Korean won (665. $ 94) on Thursday to match its daily limit for the first time since January 2015. The company’s stock price is still down nearly 20% year-to-date on the Korean Stock Exchange after a drop of nearly 50% between February and October.

Today’s announcement also offers another indication of the growing appeal of blockchain-based P2E games in South Korea. Mir4, an MMORPG with a crypto component, produced by another South Korean game studio WeMade Co, has gained popularity on the Steam platform.

Outside of South Korea, NFT games also appear to be growing in popularity, especially as companies seek to develop large metaverse ecosystems. This rise in power is evidenced by the growing volume of venture capital funds for NFT-based startups, as we have seen in recent months.

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