Pearl Abyss has reported a decline in financial performance for the 2nd quarter of 2026 as initial launch sales for Crimson Desert began to cool. The South Korean game developer recorded an operating profit of KRW 67.6 billion, representing a 68.1% drop compared to the previous quarter. However, the company is preparing major content expansions and a Nintendo Switch 2 port to stabilize long term revenue.
According to the 2nd quarter earnings letter released by Pearl Abyss, overall revenue fell 41.4% QoQ to KRW 192.6 billion. The drop came from deferred revenue splits across retail channels and regional pricing changes. Physical package distribution terms also caused a time lag in revenue recognition. The developer deferred 20% of retail package sales to cover refund guarantees, with plans to recognize this money sequentially in the coming months. High one time expenses, including performance bonuses paid out after the launch of Crimson Desert, further impacted the operating margin.
Crimson Desert managed to hold steady by selling approximately 2,110,000 copies in the 3 months ending in June. Digital downloads made up 82% of these sales, while physical packages made up the remaining 18%. The average selling price dropped from KRW 74,000 to KRW 63,000 due to distribution commissions and platform fee structures. At the same time, Black Desert outperformed internal projections by generating KRW 55.0 billion. The older game was supported by system updates and celebratory events for its 3,000th day of service, helping the company offset the dip in new release momentum.
The developer is actively working to extend the lifespans of its current games. A downloadable expansion for Crimson Desert is in active development and is scheduled to launch later this year. Specific pricing and content details will be revealed in the 3rd quarter. For the console audience, a port of Crimson Desert is currently playable on Nintendo Switch 2 development kits. Technical reviews are underway to optimize graphics and preserve the open world experience, targeting a release in the 1st half of 2027.
Two future projects remain in active development to secure future growth. The highly anticipated open world game DokeV is targeting a launch window in the 2nd half of 2028. Marketing campaigns and playable demos for DokeV are scheduled to start in the 2nd half of 2027 as staff move over from completed projects. For Plan 8, Pearl Abyss intends to maintain a release cycle of every 2 to 3 years by allocating resources carefully across its development teams.
To support shareholder value, the board of directors retired 1,403,945 treasury shares, which represents 50% of its holdings. The company is also executing a KRW 100.0 billion share buyback program that runs through December. Investors can expect the 1st dividend payout based on the full 2026 fiscal performance, with a scale set at 10% of net profit or a minimum of KRW 10.0 billion. In corporate restructures, the sale of the CCP Games subsidiary was finalized in May, with all related financial gains filed under discontinued operations.
