Nexon is heavily affected by China’s new game import laws

Yeah, we're boned.

Getting non-Chinese games into the Chinese market is a lengthy and challenging ordeal as it is, but the latest set of Chinese restrictions for South Korean companies makes it a much simpler process. Specifically? You can’t. No new games can be imported, full stop. Which is definitely simpler, but is already having a major impact on Nexon. The developer saw its stock stumble seven percent following the announcement, even though existing licensed games and all games already announced and approved are still allowed to continue operating.

If this seems like a bit of an overreaction, it’s important to note that China is one of the largest mobile gaming markets in the world, and roughly 40% of Nexon’s profits come from Chinese customers specifically. The long-term impacts on Nexon’s licensing and revenue will take a while to be seen, but any loss of access to China is going to have a large-scale impact on the company.

Source: Gamasutra
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