Nexon Co., a Japan-based developer and publisher of online games, is closing its Irvine studio even though there’s a boom for at-home playing during the coronavirus pandemic.
Nexon spokesman Jeff Brown said the facility would close early this month, and gaming websites said the shutdown would affect 60 employees.
“This was a decision based on our creative strategy,” Brown told the Business Journal by email on July 20. “We deeply appreciate the commitment and output of the OC team, however projects in development there no longer fit with our focus on core creative competencies.”
The gamesindustry.biz website said the exact number of those affected wasn’t known but that 60 people listed Nexon OC as their place of employment, while website mxdwn.com also said 60 people were employed there. Brown said he couldn’t confirm that number.
Interest Surge
Many gaming companies have been enjoying a surge in interest due to stay-at-home orders during the COVID-19 pandemic that also closed theaters, amusement parks and other outdoor attractions.
The local area has become an epicenter for the gaming market with more than 400 esports and video gaming-related companies within a 65-mile radius of Irvine, according to an estimate by Esportz Entertainment Corp.
Major local companies include game developer Blizzard Entertainment Corp. of Irvine and equipment company HyperX in Fountain Valley.
However, some companies that rely on in-person events, including Allied Esports Entertainment of Irvine, were hurt by pandemic closures.
Parts Hurting
“The shutdown of Nexon OC shows that the strong sales from increased games engagement during the pandemic isn’t helping all companies. There are still winners and losers in this business,” VentureBeat.com said on July 16.
The website added that a new survey shows that “there are parts of the game industry that are hurting despite the overall positive trend.”
“Nexon itself has more than 5,000 employees. In mid-2019, Nexon consolidated a couple of Southern California offices into one location. The Nexon OC studio was part of the Asian company’s attempt to expand into the West,” VentureBeat said.
Owen Mahoney is chief executive of the Tokyo-based company. Nexon of America is headquartered in El Segundo.
Severance, Outplacement
“All permanent employees impacted by this decision will receive severance and outplacement assistance,” Brown said. “Projects in the OC studio were never announced and closure of the studio—while difficult—represents no disruption to our product roadmap.”
Nexon is “deeply committed” to growing its development and publishing capability in Western markets, both Europe and North America, Brown added.
Multiple Nexon studios are currently developing content for Western players including: Pixelberry in Mountain View; Big Huge Games in Timonium, Md. and Embark Studios in Stockholm, Sweden.
Nexon is known for many classic role-playing games such as MapleStory, according to website mxdwn.com. The Irvine-based Nexon branch was supposedly working on a PC-based Unreal Engine 4 “massively multiplayer” online game, the website said.
The company provides games for PCs and mobile devices. n
