Nexon Writes Down Entire Value of Lawbreakers, Blames PUBG For Game's Failure

In Nexon's Q3, 2017 earnings report the company wrote off the entire value of Lawbreakers, which means they now value the game at $0 on their balance sheet. While Nexon didn't break down how much money they lost on the title, the Lawbreakers write-off made up a "majority of the total other expenses" in the quarter which was ~$32.6M.

【Q】 Do you have impairment loss or any other extraordinary expenses recorded as other expense in Q3?
【A】 Impairment loss is included in other expense. In Q3, impairment loss related to LawBreakers accounts for the majority of the total other expense. We will not accrue any more impairment loss pertaining to LawBreakers.

Another interesting tidbit from the company's Q&A Session with analysts was that Nexon blamed Playerunknown's Battlegrounds for Lawbreaker's failure. Nexon's Chief Financial Officer Shiro Uemura stated:

Our results in North America in the third quarter were below our outlook, mainly due to the sales from LawBreakers being below our expectations. LawBreakers is a unique FPS developed for core users. We had very high expectations for its launch; however, the timing of its launch turned out to be unfortunate, specifically the blockbuster PC online game PlayerUnknown's Battlegrounds came out right about the same time, making the market environment very tough for first-person shooters in general and for LawBreakers.

Blaming PUBG seems a bit silly considering both titles are vastly different. One is a hero shooter and the other is a Battle Royale game.

  • Preciel

    what a cringy company 😛

  • Boltonsquad

    Lawbreaker's made the error of releasing at all, we already have Overwatch and Paladins. I wouldn't personally blame PUBG for the failure of Lawbreakers as popular games already exist in this category.

  • TianlanSha

    I wonder what comes next for LB...

    • corinarh

      trash bin

      • Justin Shinra Locke

        Probably a free to play model first, then trash bin

  • Kudos

    How is it silly if a run away success like PUBG takes sales and time away from other games? CSGO player count dropped as players moved from one to the other. PUBG has taken the lion's share of my time. I used to play a lot TF2 and Overwatch, but have barely touched them. I was interested in R6:Siege, but I'm too busy playing PUBG.

    • Zariarn

      It's not silly at all. If you're talking buy to play games, most decide between one or two. Some games get left in the dust. I don't doubt one bit that PUBG has drawn people to its corner instead of Lawbreaker's.

      • blunite

        Thats not how the business world works. If your product doesn't sell. It means the buyer wasn't sold. It means they didn't feel the product was worth the buy. In other words it's the developers fault for not creating a product that meets the demand.

        • Zariarn

          Flooded markets can cause good games to die. (I'm not saying Lawbreakers is good cause I've never played it)

  • Augosyx

    Why PUBG when LB were clearly trying to overthrow Overwatch in the first place? PUBG is a different genre so blaming them for their success is downright stupid.

    • chosenxeno

      It's somewhat of a factor but I agree that Paladins and Overwatch played a much larger role.

    • blunite

      I knew that game might have a problem. Just look at the art style, vibes, presentation, depth. That alone typically doesn't work as well.The only games that usually dominate are powerful iconic and meaningful games. You gotta capture the audience in one trailer. Lawbreakers didn't meet the gamers subconscious standards.

    • Brittney Madison

      Actually Lawbreakers started development before Overwatch.

  • Zariarn

    I think LBs biggest downfall was trying to release the game with a price tag during the hype of Overwatch. I'm willing to bet PUBG's success did pull some people away from purchasing Lawbreakers.

  • brad

    they didn't even advertise the game well or pay streamers to play it.

  • chosenxeno

    While it's not the sole reason it was a factor. The other factors were Palidans is free and good. Overwatch got cheaper and it's by most accounts a great game. PUBG has such a nice premise and seemed refreshing in comparison to "Hero Shooters" genre and it's Hybrids(Gigantic, Paragon ect. These should have honestly been the writing on the wall).