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Owen Mahoney, who recently announced he would step down as CEO of Nexon next year, sat down with us to explain his decision. We also heard from him at the GamesBeat at The Game Awards event, where he shared his views on the future of triple-A games, predicting significant disruptions in the industry. Interestingly, Mahoney, who leads a company with many successful triple-A games, believes there’s room for change, especially as Nexon’s games are typically run as games-as-a-service.
Mahoney joined Nexon in 2010 as CFO and played a key role in its initial public offering in 2011. He’s been leading the company as President and CEO since 2014, driving consistent growth. On November 11, Nexon announced that Mahoney would step down in March 2024, with Junghun Lee, head of Nexon Korea, set to take over.
Despite being a Westerner heading a company with its headquarters in Japan and much of its development staff in South Korea, Mahoney has steered Nexon to significant success. Known for games like Dungeon & Fighter, MapleStory, and Kart Rider, Nexon has also seen recent mobile hits, including Dungeon&Fighter Mobile and MapleStory M. Notably, MapleStory’s revenue grew 46% compared to the previous year.
Starting next March, Mahoney will seek re-election to Nexon’s board and will serve as a senior advisor. Both Lee and Mahoney will continue in their current roles until the succession is formally approved. As the company, valued at $20 billion, transitions leadership, it will be interesting to see its future direction.
On December 7, Nexon announced at The Game Awards the launch of The Finals, a first-person shooter where combat is a spectator sport. The game’s development involved fewer than 100 developers, underscoring Mahoney’s point about disrupting the traditional triple-A game model.
Mahoney expressed surprise at the number of people questioning his decision to step down. He explained that after nearly 12 years of going public and ten years as CEO, it was time for new leadership. He emphasized the importance of having a strong succession plan for long-term shareholder value.
Discussing corporate governance, Mahoney highlighted Nexon’s proactive approach. He stressed that shareholders expect the management team to be efficient and reliable, and having a robust succession plan is crucial. He believes Nexon has one of the best benches of executives in the business, contributing to its current success. He also pointed out that succession should occur when a company is doing well, not when it’s struggling—an opportune time for a transition given Nexon’s current success.
Mahoney reflected on Nexon’s unique history and its long-term approach. Founded in Korea at the dawn of the internet, listed in Tokyo and America, and employing 7,500 people in Korea, Nexon has always been a different kind of company. Inventing the first MMORPG and free-to-play game, Nexon focused on creating lasting franchises like MapleStory and Dungeon Fighter, which continue to grow even decades after their launch.
Mahoney believes that Nexon’s business model allows it not only to maintain successful franchises but also to invest in highly innovative new games. This approach enabled the development of The Finals by Nexon’s Embark Studios, which received 7.5 million downloads during its beta phase, demonstrating the industry’s appetite for new ideas.
Mahoney voiced concerns about the current state of the video game industry, noting widespread dissatisfaction among customers and developers. He criticized the large-scale triple-A game development model, where developers often feel like they’re working on an assembly line rather than engaging in creative work. He emphasized the need for smaller, more iterative teams to foster creativity and innovation.
He also commented on the pressures facing CEOs in the industry, who must balance enormous financial risks with shareholder expectations. Investors, weary from unfulfilled promises of technologies like VR and blockchain, are increasingly wary of the games industry.
Mahoney advocates for smarter navigation through the industry’s challenges, leveraging software tools to streamline development and reduce costs, ultimately creating more enjoyable games. He believes that focusing on finding the fun in games, rather than chasing the latest trends, is key to success.
Looking ahead, Mahoney plans to delve deeper into software tools and development, combining his interest in coding with his extensive industry experience. He aims to engage in ongoing education and potentially influence the next generation of game developers.
Overall, Mahoney’s insights underscore a vision for a more sustainable, creative, and player-focused games industry, anticipating significant changes in the years to come.