MapleStory is a F2P side-scrolling MMORPG launched in 2003. At its core, it is a real-time, fast-paced, and flashy MMORPG with an extensive and fleshed-out class system. The 2D side-scrolling nature of the game allowed for more creative mini-game applications, like its iconic jump quests. The unique aesthetic of the game also likely contributed to its longevity, as unlike cutting-edge games of yesteryear, the game ages very well.
![KMST 1.2.177] Battle Mage 4th Job Revamped GIF | Gfycat](/_next/image?url=https%3A%2F%2Fstorage.googleapis.com%2Fpapyrus_images%2F7db7dedad7cfd3c027ff9d7f5b480b2e.gif&w=3840&q=75)
The class system in MapleStory stands out amongst its global competitors as highly developed even in its nascency - users started out as an Explorer (aka classless noob). One could only choose a class (Warrior, Bowmen, Magician, Thief) after reaching level 10. Once a player hit level 30, they could choose their 2nd job advancement, further specializing into 1 of 2 or 3 sub-classes. Further job advancements (at levels 60, 100, and 200) were more linear, but even then, it meant that a new explorer actually had 10 classes with varying nuances to choose from from the onset. The higher the level, the flashier the skills and equipment, giving competitive players an incentive to grind levels, which were not easy. In older versions, players needed ~200-300 hours to level to 50, an immense timesink. This has changed in favor of new and flashier classes, resulting in ~40 such choices as of March 2023.
Nexon, MapleStory’s publisher, is a pioneer in the F2P space, which represented a breakthrough in the space, attracting many young kids to the game, as opposed to the more “mature” audience in competitors like WoW. Revenue was broadly garnered from the Cash Shop, which only accepts actual IRL currency. That was not without controversy of course - one could purchase not only cosmetic items but also certain items that grant a chance to make your equipment stronger. While there were no actual boxes harmed in this behavior, there was no mistaking its resemblance to the questionable nature of “Loot Boxes”.
The cosmetic portion of the Cash Shop, however, dominated the large bulk. Given the game’s F2P status, most users looked very similar to one another, with only 3 hairstyles to choose from for each gender for example. While hair and facial changes are permanent, cosmetic clothes had a 90d expiration date - an early implementation of forced obsolescence.
Nexon, which holds MapleStory's IP, is a Japanese-Korean video publisher listed on the Tokyo Stock Exchange (ticker: 3659). Founded in Seoul in 1994, the company moved its headquarters to Tokyo in 2005. Having IPOed in 2011 (the 2nd largest of a tech firm in that year globally), the stock has done well since inception, peaking in April 2021, and currently sits at an MC of ~$19.2bn. In FY22, Nexon announced sales north of $2.5bn, making it one of the top ~10 game publishers globally.
Figure 1: share price performance of Nexon since IPO on Dec 2011
Despite its age, MapleStory remains a valued IP of Nexon, retaining serious mindshare on the eve of its 20th anniversary. Total registered users globally are over 180m, and lifetime revenue has exceeded $4bn. The spinoff into mobile (MapleStory M) has also been successful, which notched >5m downloads on Android alone. While Nexon does not give exact figures on MapleStory actual figures, the provided chart1 below from the IP paints a highly lucrative picture.
Figure 2: Lifetime revenue as per Nexon on its FY22 IP
This data is further supported by 3rd party data sources (MMO Populations2, and Steam3) on its surprising longevity, with an active community on Reddit. MapleStory, despite its age and past its heyday, is doing pretty well, with an estimated ~400k DAUs as per the MMO population.
Figure 3: L5Y active players as per MMO populations
Figure 4: L5Y players from Steam
Nexon has also grasped savvy marketing tactics to renew mindshare and grow its player base. In late 2020, they collaborated with BTS, with special in-game events and items to much fanfare.
MapleStory is not even Nexon’s most valuable IP - the title goes to Dungeon & Fighter, with 850m registered users globally and lifetime revenue in excess of $20bn. That said, MapleStory, despite its decline, is one of the crown jewels4 in Nexon’s portfolio - quite a feat for an old game where the users often get disillusioned with its developers.
Figure 5: historical LTM revenue of core IPs as per Nexon FY22 IP
Nexon has also successfully increased its expertise in the mobile space5 while diversifying away from PC, augmented by its 2016 acquisition of Big Hit Games, a mobile game developer based in Maryland, US.
Figure 6: historical revenue by end-market platform
Given its presence in Asia, it comes as no surprise that the bulk of Nexon’s revenues is from the region6, particularly within the Sinosphere - Korea, China, and Japan's contribution to its topline is close to 90%.
Figure 7: FY22 breakdown of revenue by region
In early March 2023, Nexon announced MapleStory Universe, its attempt at GameFi P2E. That Nexon decided to foray into GameFi P2E was not surprising - the company famously bought $100m of BTC in April 2021, near the pico top. What stood out was the main IP on which these NFTs were to be released - MapleStory.
Large Asian game companies entering the space are not uncommon, as we’ve seen with Square Enix’s SYMBIOGENESIS, NCSoft’s entry into SUI (wut??), and NetMarble into Klaytn (wuut???). Most traditional game companies entering into the space have been faced with dubious credibility, and that was originally the same with Nexon. The launch video of MapleStory Universe, however, spoke of a different story. Rather than focusing on the game first, Nexon has opted to focus on the IP and NFTs, with an inverted approach of NFTs sharing the games instead of merely slapping NFTs as skins in their games.
In this new bottom-up paradigm, Nexon will be a contributor and a member of this open ecosystem
Nexon, unlike others, has a very clear understanding of the space that was very well articulated in their launch video. Daehyun-ssi, the COO of Nexon Korea, has zoomed in on the advantages of the Blockchain and intends to leverage that to its advantage to evolve the MapleStory IP within the metaverse;
Transparent governance on-chain granting the player more control, which drives immersion and reduces reliance on a sole developer’s authority
Open ecosystems, with Nexon first and foremost as a contributor - rewards and profits are being shared with other contributors alongside a transferrable “state identity” across multiple games
NFTs as a store of credible IP value, backed by one of Nexon’s strongest legacy core brands - MapleStore
These NFTs will be shared and allowed to freely allowed to traverse the mempool, bringing composability to the non-fungible space. With the Blockchain as a denominator enshrining an almost immutable agreed set of rules, these once-individual worlds can now be bridged, transforming from a closed world to an open collaborative universe. Nexon is boldly allowing developers to jointly build and develop the MapleStory world, a task unthinkable for traditional game companies with obsessive control over their creation.
By opening these new frontiers, Nexon is attempting to further grant permanence to its IP (and thus NFTs) past its siloed world by granting tools designed to outlast Nexon itself. Four such games in the vein of this vision have been confirmed thus far;
MapleStory N, an MMORPG currently under development
All item NFTs are obtainable through gameplay by defeating monsters or completing quests - players now truly own their items, allowing for the removal of the Cash Shop and a free market economy
No NFT presale will be conducted
Fees generated in economic activities will be distributed on-chain to ecosystem contributors including Nexon and the players
MapleStory N mobile
Mobile support to allow for NFT access on the go by being able to bring your character with you everywhere
Mod N, sandbox platform
A platform for players to create sandbox experiences and games across PC and mobile based on MapleStory IP NFTs and external NFTs
All games created in Mod N will belong to the creator, and developers can leverage MapleStory’s assets which exceed 30m assets created over 20 years
Rewards distributed will be based on the contribution and popularity of the game created
MapleStory N SDK - open for other contributors to build a world surpassing the limits of Mod N
A platform focused on non-gameplay related experiences7, with an NFT app store and perpetuating the MapleStory IP metaverse
Examples include gamified healthcare trackers, merch stores, and integrated quests across the shared Universe
Figure 8: example applications of N SDK
At its core, MapleStory suits the GameFi P2E space very well, with many such parallels on a basic level. Cash Shop cosmetics allowed players to upgrade their character’s “rarity” from that of a “floor”. Special conveniences were sold like Pets, which picked up loot for the players but only lasted for 90 days. This also included Shop Permits, allowing for one to set up shop in the Free Market and sell one’s items on a peer-to-peer basis. The tokenization of jpegs as NFTs is thus a natural progression for MapleStory, granting players more control and flexibility while ensuring provenance and longevity. Crucially, Nexon has clearly identified this and has opened up its resources and toolboxes to further entrench the IP in the space on a collaborative basis.
The bera market in crypto has always been one for building. The biggest winners of the last cycle were launched in the darkest days of the long winter, like UniSwap and Opensea in 2018, which appeared with little fanfare.
As an avid player of games and a strong believer in the thesis of GameFi P2E to widening adoption of Blockchains, I have long held the belief that the winner will likely be from a crypto-native game studio with a firm grasp on the nuances of the space. Nexon’s entry with MapleStory Universe has upended that assumption, with its precise, bold, and knowledgeable approach to the space that far surpasses its competitors.
Legitimacy is the scarcest resource in this space, and Nexon using its MapleStory IP shows its acknowledgement, sincerity, and commitment to the space
Traditional gaming publishers - lacking the boldness to bet with their core IP and a meager understanding of the space - mostly elect to brute-force NFTs as skins in the game. Crypto-native indie game studios have a strong grasp of the nuances, but face multiple headwinds with amateurish games, weak IPs, and insufficient funding/developers.
Visualized: my Kerning City PQ days
Nexon's announcement of MapleStory Universe came in like a wrecking ball, breaking all mental models. The boldness of putting its core IP on the table, with a clear roadmap to leverage the open and non-siloed ecosystems of the space stands out far and tall from other competitors.
Given the nascency of the announcement (2 days ago as of this post), it is still too early to pass any judgment calls. I am certain, however, that Nexon, if they wish so, can move and execute fast given the vast amount of assets and lore available to the team.
Lastly, Nexon operates majorly in Asia (see Figure 7). NFT backlash amongst gamers has never stopped even during this winter. Gamers have long been strung and hung dry by game companies with their predatory models, excessive DLCs, and sometimes even P2W ecosystems. What is less understood, however, is that NFTs opens up gaming ecosystems, grants players more control, and are provably fair and transparent. Furthermore, revenue streams can be strengthened in less toxic and predatory ways, like taxes on auction house sales.
This backlash has its huge consequence in the West - UniSoft announced its intention to incorporate NFTs into its own ecosystem in late 2021. They were forced to backtrack quickly after gamers and even their own employees rioted against the decision. This is despite using Tezos over Eth, which was then PoW to assuage the concern about the chain’s environmental footprint. Nexon focus in Asia allows for agileness that the Western competitors cannot hope to have.
Only time will tell if Nexon can deliver on its ambitious promises. The language has been highly promising, showing a clear roadmap and solid vision that surpasses that of most crypto-native game studios.
I am cautiously optimistic about Nexon’s foray into the space. More details (or even an MVP) are to be had before I pass judgment, but my gut is telling me, that this might turn out to be quite the thing to behold.
If you enjoyed my ramblings, bls subscribe and follow my Twitter at @ExcelMaxi
Q4 2022 Investor Presentation
https://mmo-population.com/r/Maplestory/stats
https://steamcharts.com/app/216150
Q4 2022 Investor Presentation
Q4 2022 Investor Presentation
Q4 2022 Investor Presentation
https://maplestoryuniverse.io/
Lawrence
