Date: Thursday, November 12, 2026
Topic: Pearl Abyss Q3 2026 Financial Results and Future Strategy
■ Summary of Pearl Abyss Q3 2026 Results & Current Status
▣ Q3 2026 Financial Summary
- Q3 2026 revenue of 101.5 billion won (+18.0% YoY, -47.3% QoQ)
└ Black Desert user metrics rebounded and revenue increased following major content updates
└ Added 5 new voiceovers and subtitles, held first discount sale, and released Enhanced version for Crimson Desert
- Operating profit of 20.7 billion won (-8.8% YoY, -69.4% QoQ)
- Net profit of 10.8 billion won (-71.0% YoY, -84.8% QoQ)
└ Decreased QoQ due to exchange rate impact from a stronger Korean won
- Revenue by IP: Black Desert IP 61.0 billion won, Crimson Desert IP 40.6 billion won
└ Black Desert up 10.9% QoQ, Crimson Desert down 70.2% QoQ
└ Black Desert showed QoQ strength
└ Crimson Desert sold approximately 680,000 copies during Q3
- Revenue breakdown by region: North America/Europe 68%, Asia 18%, Korea 14%
- Revenue breakdown by platform: PC 74%, Console 19%, Mobile 7%
└ PC share rose 13%p QoQ due to increased Black Desert PC revenue
└ Console share fell 15%p QoQ impacted by Crimson Desert revenue
▣ Q3 2026 Operating Expenses Summary
- Q3 2026 operating expenses of 80.8 billion won (+27.6% YoY, -35.4% QoQ)
- Labor costs of 36.7 billion won (+24.0% YoY, -50.9% QoQ)
└ Decreased as one-off bonus expenses paid last quarter were eliminated
- Commission fees of 18.3 billion won (+14.4% YoY, -40.2% QoQ)
└ Decreased, impacted by lower Crimson Desert sales
- Marketing expenses of 11.1 billion won (+8.8% YoY, +22.0% QoQ)
└ Increased due to marketing for Heidel Ball and the Crimson Desert Enhanced release
- Other expenses of 12.4 billion won (+148.0% YoY, +49.4% QoQ)
└ Increased due to higher outsourcing fees, including voiceovers for Crimson Desert
▣ 2026 Guidance
- Q3 performance met internal expectations; Q4 guidance may be slightly missed due to the strong won
└ Exchange rate diverged by approximately 10% compared to when the business plan was drafted
└ Striving to achieve guidance through Crimson Desert DLC release, marketing for base game sales growth, and stable Black Desert live service
- Full-year 2026 revenue expected to reach 709.8 billion to 743.8 billion won
└ Black Desert projected at 239.0 billion to 244.6 billion won, down ~4-7% YoY
└ Crimson Desert expected at 468.9 billion to 497.3 billion won
- Full-year 2026 operating profit expected to reach 315.5 billion to 345.2 billion won
└ Projected to increase by ~1,259-1,387% YoY
└ Operating profit margin expected at 44.4-46.4%
- Q4 revenue expected to reach 87.2 billion to 121.2 billion won
└ Black Desert 61.4 billion to 67.0 billion won, Crimson Desert 25.7 billion to 54.1 billion won
└ Operating expenses projected at 72.1 billion to 76.4 billion won
└ Operating profit expected at 15.1 billion to 44.8 billion won, operating margin at 17.3-37.0%
▣ Business Overview
- Black Desert
└ Added new PC content including Agent class, Edania story, and Black Shrine
└ Console revenue increased driven by system revamps such as new boss conquests and class balancing
└ Mobile slightly weaker due to continued intensifying competition
└ Hosting Calpheon Ball in December; planning to reveal 2027 new content and live service plans
- Crimson Desert
└ Released first DLC "Unknown Journey" on October 30; reached 8th on Steam on launch day
└ Preparing pricing strategies and platform expansion
└ Targeting Nintendo Switch 2 version release in the first half of 2027
- DokeV
└ Targeting release in H2 2028; development update to be shared within 2026
└ Accelerating development speed through continuous expansion of dev headcount, accumulated expertise, and the engine refined during Crimson Desert's development
└ Leveraging AI to rapidly test ideas before entering full development, boosting development speed
└ AI serves as a tool for idea validation and productivity enhancement; core fun and gameplay implementation are handled directly by the dev team
└ Targeting H2 2027 for full-fledged marketing, including hands-on demos
- PLAN 8
└ Targeting a 2–3 year release interval while focusing on DokeV development
■ Q&A
Did Q3 performance meet guidance?
= Despite the impact of the declining KRW/USD exchange rate, Q3 results generally aligned within the company's expected range. We are continuously monitoring key metrics and sales trends, and we will strive to achieve our annual guidance in Q4 based on Black Desert content updates and Crimson Desert sales strategies.
Why was Other Revenue negative?
= Our total operating revenue is calculated by combining IP revenue from Black Desert and Crimson Desert with Other Revenue. In Q3, IP revenue recorded 101.6 billion won and Other Revenue recorded -100 million won, bringing total operating revenue to 101.5 billion won. Other Revenue was negative due to reduced investment asset valuation gains at our subsidiary, Pearl Abyss Capital, primarily reflecting shrinking valuation gains on foreign-currency assets as the Korean won strengthened.
Could you elaborate on operating expenses?
= Q3 labor costs fell 50.9% quarter-over-quarter due to headcount reductions and the elimination of one-off bonus expenses incurred in Q2. Q3 headcount stood at 996, down 3.8% QoQ due to a decrease in short-term personnel related to Crimson Desert and the completion of internship programs.
Marketing expenses increased 22% QoQ due to marketing for Black Desert's Heidel Ball and pre-orders for Crimson Desert Enhanced and its DLC. In Q4, we will continue to maximize marketing effectiveness through efficient spending while considering market conditions.
Commission fees decreased 40.2% QoQ, impacted by Crimson Desert sales. In the first half, platform commission fees paid to platforms like Steam increased due to the launch of Crimson Desert, but in Q3, revenue stabilized at lower levels, affecting commission fees accordingly.
Additionally, differences in revenue recognition methods by platform affect commission fees. Console revenue is recognized on a net basis excluding platform fees, whereas PC revenue is recognized on a gross basis, with platform fees subsequently recorded under commission fees. In short, commission fees depend not only on sales volume but also on the sales mix across platforms.
Other expenses increased 49.4% QoQ due to higher outsourcing costs associated with adding five new voiceovers and Arabic subtitles ahead of the Crimson Desert Enhanced release.
What is the guidance on financial income/loss, and what caused the corporate tax income?
= Financial income/loss fell by 33.1 billion won QoQ to -45.3 billion won, as foreign exchange losses and losses on valuation of foreign-currency assets widened due to the fall in the KRW/USD exchange rate caused by a stronger Korean won.
Income tax expense is calculated on a cumulative basis by applying the estimated annual effective tax rate in accordance with accounting standards. As the income tax expense recognized through the first half exceeded cumulative earnings thresholds, a partial reversal occurred this quarter, resulting in corporate tax income. Furthermore, as subsidiary PAI is currently undergoing liquidation, we determined that the associated valuation losses can be utilized for future tax savings, recognizing 28.6 billion won in deferred tax assets. This contributed to the increase in corporate tax income for the quarter.
Is it possible to achieve the full-year guidance?
= We are focusing on maintaining stable live service for Black Desert and expanding sales for Crimson Desert to achieve our annual guidance. For Black Desert, we plan to reveal future update plans at the Q4 ball and continue rolling out content updates and service improvements. Crimson Desert launched its first DLC on October 30, and we are driving sales growth through pricing strategies and additional marketing activities. However, given recent exchange rate volatility, we will closely monitor related impacts and continuously review key metrics and sales trends to do our utmost to achieve our annual guidance.
What are the sales projections for Crimson Desert's base game and DLC?
= We do not separately disclose sales projections for Crimson Desert. Please refer to our annual guidance.
Is there any potential for one-off expenses?
= As of now, there are no one-off expenses expected to have a meaningful impact on financial performance. We manage expenses within the scope of our business plan and will communicate with the market if any changes occur.
What were Black Desert's Q3 results and expectations for Q4?
= In Q3, Black Desert showed quarter-over-quarter strength driven by various content updates and system improvements, including the new Edania Part 2 region and the new Agent class. In particular, following the introduction of the HYPERBOOST system—which accelerates progression for new and returning players—key user metrics improved, including higher Steam rankings, increased DAU, and a rise in streaming viewership.
In Q4, we held the 2026 Master Class Tournament PvP content and plan to share Black Desert's future update plans at the Calpheon Ball in December. In Q4 as well, we will continue stable live operations to deliver fresh, enjoyable content that drives strong performance.
Could you share the sales status of the Crimson Desert DLC?
= Sales of the DLC are currently progressing smoothly. In particular, following the DLC launch, base game sales have also increased, driving overall sales growth.
Are there plans to release Crimson Desert on Nintendo Switch 2?
= We are preparing the Nintendo Switch 2 version of Crimson Desert targeting a H1 2027 release, and specific schedules will be announced through official channels at a later date.
Are there plans for multiplayer in Crimson Desert?
= Given that Crimson Desert is a game featuring action mechanics and an open-world structure, there is potential for expansion into multiplayer in the long term. However, adding multiplayer is not simply a matter of introducing a new game mode; it requires comprehensive consideration of server infrastructure, game balance, platform stability, and live operations. We are currently conducting research on both technical feasibility and gameplay quality, reviewing ways for players to enjoy the Crimson Desert IP in more diverse forms. Once concrete plans are finalized, we will share details through official channels.
Could you provide details on additional DLC or franchise plans for Crimson Desert?
= We are currently focusing on the development of our next titles. Going forward, we plan to evaluate the expansion direction of the Crimson Desert IP and decisions on follow-up projects by comprehensively considering player feedback and market conditions.
Does Crimson Desert have prospects for awards like the Korea Game Awards?
= Crimson Desert has been nominated for awards by major prestigious outlets in recognition of both its development quality and mainstream appeal. Rather than aiming for awards as a primary goal, we focus on delivering the best gaming experience to players, and we will do our utmost so that these efforts translate into positive recognition and results.
What is the long-term growth strategy for Crimson Desert?
= Crimson Desert is a core IP that we intend to grow long-term rather than keeping as a standalone title. We plan to expand our user base and continuously enhance IP value through platform expansion and various follow-up strategies. Furthermore, as Crimson Desert possesses high scalability across its worldview, characters, and regions, we will continuously secure long-term growth drivers.
What are the plans regarding a Chinese game license (ISBN) or a mobile version?
= China is an important market in terms of industry scale, so we are continuously monitoring and evaluating it; however, we currently have no concrete plans to apply for a publishing license (ISBN). We are examining global market expansion opportunities from multiple angles, including China, and will announce any major decisions through official channels.
Currently, there are no plans to develop a mobile version of Crimson Desert. As Crimson Desert emphasizes high-quality graphics, action, and an open-world experience as its core values, thorough evaluation is needed to determine whether an equivalent gaming experience can be delivered on mobile platforms. While we continuously research the mobile scalability and optimization potential of the BlackSpace Engine, our current resources are focused on next-title development. We plan to evaluate mobile platform expansion in the future by considering technological environments, market conditions, and development priorities.
What kind of game is DokeV?
= DokeV is an open-world action-adventure game featuring a new world and storyline, where players adventure alongside Dokebi to freely explore the world and grow. It is being developed around bright, distinctive visuals, action mechanics, exploration fun, and diverse interactive elements as core features. Detailed gameplay systems and content will be revealed sequentially according to future marketing schedules.
Could you share DokeV's development status and marketing plans?
= DokeV is being developed stably by utilizing development assets and production experience accumulated through previous projects. We are currently expanding content around the main storyline to flesh out the overall gameplay experience.
We are targeting a launch in H2 2028 and plan to share a development update within this year. Additionally, starting in H2 next year, we expect to begin full-scale marketing activities, including hands-on demos. We will communicate with players by releasing information when we can effectively convey the game's direction and strengths.
What is the current headcount assigned to DokeV development?
= Development headcount is managed flexibly according to project phases, making it difficult to state a specific number. However, following the recent release of the Crimson Desert DLC and with Switch 2 development currently in the optimization stage, more development personnel have transitioned to DokeV compared to the previous quarter. Through appropriate resource allocation, we will do our best to meet the target release window of H2 2028.
What is the status of treasury stock acquisitions, and are there plans for additional buybacks or cancellations?
= On June 9, 2026, our Board of Directors approved a 100 billion won share buyback, entering into a trust agreement to purchase treasury shares from June 9, 2026, to December 9, 2026. As of November 12, the full contract amount has been repurchased, acquiring 3,006,938 shares through this trust agreement and bringing our total treasury shares held to 4,406,938 shares (7.7% of total issued shares).
No decision has been finalized regarding additional share repurchases, and we plan to evaluate options considering our overall financial condition, investment plans, and shareholder value enhancement measures. We will announce any decisions to the market once finalized.
We also consider share cancellations an important tool for shareholder returns. On June 9, 2026, the Board approved the cancellation of 1,403,945 shares—representing 50% of our existing treasury stock—and completed the share cancellation on June 12. The scale and timing of any additional share cancellations will be determined by the Board after evaluating financial conditions and investment plans, and will be announced once confirmed.
What are the dividend plans?
= We plan to initiate our first dividend based on 2026 financial results, with the payout size planned to be the greater of 10 billion won annually or 10% of net profit. The dividend record date will be December 31, 2026, and the exact dividend amount will be finalized through Board and shareholder meeting procedures.
Could you explain the utilization plans for BlackSpace Engine and AI?
= The BlackSpace Engine is one of Pearl Abyss's core technological competitive advantages, and we currently utilize it to strengthen our proprietary IP rather than commercializing it externally. In the long term, we plan to establish a user-generated content ecosystem based on the BlackSpace Engine, building a platform where players and creators participate and grow together.
We are also utilizing AI technology to improve development productivity and quality. AI is applied across various development areas—including repetitive task automation, content creation assistance, and testing efficiency—and we are expanding its scope across the entire development pipeline. We view AI not as a replacement for developers, but as a tool to elevate development efficiency and quality. Moving forward, we will expand AI application to deliver higher-quality games faster.
Are there future investment plans?
= We are exploring various possibilities as growth strategies, but we approach M&A cautiously, fully considering long-term direction and impact on shareholder value. Currently, our focus is on developing next titles—including DokeV—and strengthening core IP competitiveness, while prioritizing our vision of building a creative ecosystem. However, if an opportunity arises that substantially aids company growth and corporate value enhancement, we will evaluate new businesses and M&A with an open mindset.
