WeMade Entertainment – WeMade records losses and bets on “blockchain MMORPG”

WeMade is one of the pioneers of “blockchain games”. For now, this strategy is leading to losses, but the studio sees it as an investment in the future and announces new blockchain-based MMORPGs.

In South Korea, the group We have done intends to position itself as one of the pioneers of the “blockchain game”, consisting in the production or distribution of games that exploit blockchain technologies and are based on in-game economic systems that integrate cryptocurrencies or the marketing of objects via NFT. With this in mind, WeMade has launched its own blockchain gaming platform, WeMix, which aims to leverage the group’s in-house designed games and those of third-party developers.

Results at half auction. Against this backdrop, WeMade has just released its accounts for the second quarter of 2022 and we can see that the group’s strategy will clearly require large investments.
Specifically, between April and June, WeMade posted losses (a deficit of 31.6 billion won, or 23.7 million euros) despite a turnover of 108.9 billion won (81.7 million euros). For comparison, in the same second quarter of 2021, the group generated a turnover of 51.7 million euros and made a net profit of 13.9 million euros.
During the second quarter, the The value of the WeMix token has decreased by nearly a third of its value (dropping from $ 4 to $ 2.7 during the quarter, and considering that at its peak last November, the token was worth more than $ 21). WeMade points out that this decline in value is part of the downtrend of all crypto assets currently.

How to explain the losses of the group? First of all the disappointing sales of MIR M: Avant-garde and Vagabond (the last WeMade game to date, launched on June 23) but also and above all due to the investments of the studio. WeMade is massively recruiting (salary costs increased by 244%) and massively promoting its platform (marketing costs increased by 387%). Likewise, the cost of operational use of the group’s servers increased very significantly, by 633%.

Blockchain’s bet for the future. Despite the gloomy results, WeMade remains convinced by “blockchain games” (the sector is still in its infancy and according to WeMade, only 1% of their potential has been exploited to date). Consequently, the study makes this clear all his next titles will be “blockchain games” and in the coming months, the WeMix platform will welcome seven new titles: WeMade promises a hundred long-term, 20% from its studios and the rest from third-party developers. In most internal games, quote the developer Legend of YMIR (made with the Unreal Engine) but also a new MMORPG not yet announced and currently entrusted to the development team of the Project V4 – the two games will be revealed in more detail next November as part of the G-Star 2022.

We understand that WeMade displays a very proactive policy and that it is a real gamble, both for the studio and for the “investor players”. According to the study, it is in times of crisis that the most daring choices must be made, and we will be curious to find out if these choices will prove to be profitable (or not) in the coming years.

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