Did Nexon’s AI Ethics Stance in Arc Raiders Just Shift NEXON's (TSE:3659) Investment Narrative?

• Nexon’s CEO Junghun Lee recently argued that “every game company” now uses AI, while stressing that human creativity still separates standout titles from average ones, as debate intensified over the ethical limits of AI in its hit game Arc Raiders.
• Following criticism, Embark Studios clarified that Arc Raiders relies on machine learning and reinforcement learning rather than generative AI, putting Nexon’s broader technology choices and stance on AI ethics under a spotlight.
• We’ll now examine how Nexon’s emphasis on AI efficiency, paired with human creativity and ethics concerns, may influence its investment narrative.

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NEXON Investment Narrative Recap

Nexon’s investment story rests on its ability to extend the life of legacy franchises while building new global hits like Arc Raiders. The latest AI ethics debate appears more reputational than financial for now, with the key near term catalyst still being successful global launches and the biggest risk remaining player fatigue and revenue concentration in aging titles.

Against this backdrop, Nexon’s November 11 guidance for 2025, including projected revenue of ¥467,303 million to ¥480,839 million and a higher annual dividend forecast of ¥45.00 per share, feels especially relevant as investors weigh whether AI driven efficiencies and live service updates can support ongoing earnings growth.

Yet, beneath Nexon’s focus on AI efficiency and content updates, investors should also be aware of rising global scrutiny of in game monetization and how it could...

Read the full narrative on NEXON (it's free!)

NEXON's narrative projects ¥515.1 billion revenue and ¥111.7 billion earnings by 2028.

Uncover how NEXON's forecasts yield a ¥3461 fair value, a 9% downside to its current price.

Exploring Other Perspectives

Simply Wall St Community members currently offer 1 fair value estimate for Nexon, clustering tightly at ¥2,244.29 per share, underscoring how even a single viewpoint can diverge from market pricing. You should weigh this against Nexon’s heavy reliance on aging blockbusters, since any slowdown in engagement or weaker reception for new titles could challenge assumptions behind both community and analyst expectations.

Explore another fair value estimate on NEXON - why the stock might be worth 41% less than the current price!

Build Your Own NEXON Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your NEXON research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free NEXON research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate NEXON's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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