Yesterday GRAVITY Co., Ltd. (NASDAQ:GRVY) closed 2.3% up at $1.29 per share. The stock opened with a gap down and managed to close up just before the bell.
GRVY, of former Ragnarok Online fame, reported their fiscal Q2 performance in late August. The company saw an decrease of revenues across the board, the biggest dip coming in the form of a revenue shrink from subscription fees for their massively multiplayer online games. Royalty and license fee revenue decreased 7% quarter-over-quarter and revenue from subscriptions shrunk by a staggering 49% on the same basis.
The company also slipped into logging quarterly net loss as their net income of $667 thousand for Q1 turned into a net loss of $1.35 million for the quarter ended June. The market was quick to react and the stock lost almost 15% of its price on the day the report came out, then continued to slip further.
GRVY’s Ragnarok Online 2 ate a lot of time and resources, then ended up being scrapped due to poor player reception and reworked virtually from the ground up. The cute MMORPG franchise relaunch was marketed as RO 2: Legend of the Second but the reboot too still lingers in what some call with the endearing “development hell”, or endless beta testing.
Rumor has it a company named Asiasoft is gearing up to launch the first RO 2 English language server for the game in December but there is no hard information yet. Private free servers running unofficial versions with modified parameters are also not helping the developer in any way.
GRVY may find that they are late to the party, however, as a large number of potential players have given up hope and invested their time in other franchises.