Shortly after Owen Mahoney announced his decision to step down as CEO of Nexon in March 2024, I had the opportunity to interview him about this transition. We also heard from him at the GamesBeat at The Game Awards event, where he remarked on the disruption potential within the triple-A game sector. This is noteworthy coming from Mahoney, as he leads a company known for its suite of triple-A titles, primarily operating on a games-as-a-service model.
Owen Mahoney joined Nexon in 2010 as CFO and oversaw its IPO in 2011. Since becoming president and CEO in 2014, he has consistently driven revenue and operational income growth, overseeing the most robust game development pipeline in Nexon’s history. Mahoney's impressive tenure culminated with the announcement of his upcoming transition, where he will be succeeded by Junghun Lee, the head of Nexon Korea.
Despite being a Westerner leading a company based in Japan with heavy South Korean involvement, Mahoney's track record is commendable. Nexon is celebrated for hits such as Dungeon & Fighter, MapleStory, and Kart Rider, as well as recent mobile successes like Dungeon & Fighter Mobile and MapleStory M. Notably, MapleStory saw a remarkable 46% year-over-year growth in the last quarter.
In our December 7 conversation, Mahoney explained the reasons behind his decision to step down. He emphasized the importance of maintaining a strong team and a solid succession plan to ensure long-term shareholder value. "The average tenure for a CEO in a company of our size is around six and a half years, and with nearly ten years at the helm, I've seen this as an opportune moment for transition," he stated.
Mahoney also provided insights into the state of the gaming industry. He highlighted how developers are often unhappy, feeling confined to roles that stifle creativity. "Many talented developers enter the industry out of passion for games but end up in roles that resemble factory work, rather than truly creative positions," he noted. This environment, he claims, hampers innovation and leads to dissatisfaction across the industry.
He further criticized the current investment landscape, where long-term investors are growing increasingly wary of the volatile gaming sector. "The rapid escalation of game development costs—from $10 million to upwards of $300 million—has created unsustainable practices," he remarked.
On the topic of innovation, Mahoney expressed optimism for the future, particularly regarding Nexon's new first-person shooter, The Finals, developed by Embark Studios with less than 100 developers. This venture showcases a new model for creating triple-A titles, focusing on gameplay and user engagement rather than sheer scale.
Reflecting on the industry's potential, Mahoney believes there’s a pressing need for smarter development practices. “The best ideas come from those who truly understand the gaming experience. Games should be fun first and foremost," he asserted. Mahoney aims to lead a shift towards a development model that prioritizes creativity and player satisfaction over production scale.
Ultimately, Mahoney's departure marks the end of an era for Nexon, but also a potential turning point for both the company and the broader gaming industry. As he prepares for his next chapter, he hopes to leverage his coding skills and focus on development tools that further enhance the gaming landscape. "I’d like to explore ways to celebrate innovative tools and foster creativity in game design before fully stepping back," he shared.
With Mahoney's insights, it’s clear that the gaming industry stands on the brink of significant transformation. As Nexon looks to the future under new leadership, both developers and players can anticipate exciting innovations ahead.
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