XL Games Sells 'ArcheAge' IP for 39.2 Billion Won

[Financial News] XL Games, a development subsidiary of Kakao Games, is transferring the intellectual property (IP) for the massively multiplayer online role-playing game (MMORPG) 'ArcheAge' and development rights for its sequel 'ArcheAge S' to Align Studio.
The company is selling a core asset to secure liquidity as its performance has continued to deteriorate in recent years.
On the 8th, XL Games disclosed that it would transfer to Align Games, a game software developer, all intellectual property embodied in the ArcheAge game and its sequel, as well as the ArcheAge S development project and related assets, contracts, personnel and liabilities, for 39.2 billion won.
The purpose of the transfer is to secure liquidity and improve the financial structure. The transfer date is October 27.
The move follows continued deterioration in performance caused by a string of disappointing new releases and the burden of massive development costs.
XL Games said, "Changes in assets, liabilities and the future profit-and-loss structure are expected, while the inflow of proceeds from the transfer is expected to secure liquidity and improve the financial structure."
XL Games recorded 31.09 billion won in revenue and an operating loss of 24.16 billion won last year. Revenue in the first quarter of this year was also 3.27 billion won, down 89% from the same period a year earlier. In response, the company has been making every effort to improve its financial structure, implementing voluntary retirement and personnel reassignment programs last May.
XL Games had been seeking a rebound in performance by leveraging its lineup of new releases.
In the fourth quarter of this year, the company plans to launch 'ArcheAge Chronicles,' a new RPG based on the ArcheAge IP, as a multiplatform title for PC and consoles. It is also developing 'ArcheAge S: Straits of Freedom,' targeting a release in the second quarter of next year.
[email protected] Jang Min-kwon Reporter