Pearl Abyss experiences a drop in second-quarter earnings as the effects of Crimson Desert's launch period wane

Image credit: Pearl Abyss

Pearl Abyss experienced a softer second quarter following the initial momentum from the March release of Crimson Desert.

After a dramatic increase of 419.8% in first-quarter earnings, both operating revenue and profits saw a decrease.

Operating revenue fell by 41.4% to ₩192.6 billion ($135.9 million), while operating profit dropped 68.1% to ₩67.6 billion ($47.7 million). Net profit similarly decreased by 58.3% to ₩70.9 billion ($50 million).

The company fell short of its previous forecasts due to reasons such as "sales splits across distribution channels for Crimson Desert, regional pricing strategy differences, time lags between sell-through and revenue recognition for physical packages, and revenue deferrals for refund guarantees."

In terms of regional revenue distribution, North America and Europe accounted for 75%, with Asia contributing 16% and Korea 9%. By platform, the PC led with 61% of revenues, consoles contributed 34%, and mobile represented 5%. A substantial portion of revenue—about 70%—was attributed to Crimson Desert on consoles.

During the second quarter, Crimson Desert sold 2.11 million copies, earning ₩136.1 billion ($96 million). Digital versions represented 82% of these sales, with physical copies making up 18%.

The company is working on DLC for their open-world RPG, set for a third-quarter announcement. It is also extending to new platforms, having achieved a "playable baseline" on the upcoming Nintendo Switch 2, with a release aimed for the first half of 2027.

The Black Desert series brought in ₩55 billion ($38.8 million), with a slight drop attributed to a focus on "content optimisation rather than major expansions."

Looking forward, Pearl Abyss updated its full-year projections, anticipating operating revenue between ₩709.8 billion ($501 million) and ₩743.8 billion ($525 million), with operating profit estimates ranging from ₩315.5 billion ($222.7 million) to ₩345.2 billion ($243.6 million).

The company is also developing two new titles, DokeV and Plan 8. DokeV is planned for release in the second half of 2028. Pearl Abyss strives to sustain a "consistent release cycle of every two to three years" for its games.