Pearl Abyss Faces Uncertain Future with 'Red Desert' Delays
On August 14, NH Investment & Securities downgraded its investment opinion for Pearl Abyss from “buy” to “hold” due to ongoing delays in the launch of their highly anticipated game, ‘Red Desert’. The target stock price was also slashed from 52,000 won to 33,000 won, reflecting growing concerns about the reliability of the game’s release schedule.
The delays have been significant, with the launch date pushed back multiple timesfrom the first half of last year to the second half, then to this year, and now to the first quarter of next year. While delays are not uncommon in game development, the frequency of these setbacks has raised eyebrows among investors and analysts alike. With Pearl Abyss facing an operating loss of KRW 11.8 billion in the second quarter, the pressure is mounting for a successful launch to turn the tide.
As the company continues to grapple with declining sales from its existing title, ‘Black Desert’, and increasing marketing costs related to ‘Red Desert’, the uncertainty surrounding the game’s release remains a critical concern. Will Pearl Abyss be able to regain investor confidence and deliver a successful launch, or will the delays continue to hinder its growth?
Original source: https://www.mk.co.kr/en/stock/11393414