Horizon: Steel Frontiers is an MMO based on the PlayStation series, and it's coming to PC and mobile (but not PS5)

NCSoft, known for Guild Wars 2, is developing "Horizon: Steel Frontiers," an MMO spin-off of Sony's successful Horizon franchise, which has sold 38 million units globally. This new title, specifically designed for mobile, will launch on PC, Android, and iOS, notably bypassing PlayStation 5, signaling a strategic effort to expand the IP into the lucrative mobile and PC MMO markets. While NCSoft possesses significant MMO development experience, its recent title "Battle Crush" was quickly discontinued, adding a layer of risk to this venture for which release details and monetization strategy are yet to be announced.

Analysis

Sony's (SONY) Horizon franchise, which has sold 38 million units globally, is strategically expanding into the mobile and PC MMO market with "Horizon: Steel Frontiers," developed by NCSoft. This move targets lucrative new platforms (PC, Android, iOS) and notably bypasses the PlayStation 5, indicating a mobile-first development approach designed to leverage a strong IP across broader gaming demographics. This diversification effort aims to extend the intellectual property's reach beyond its core console ecosystem.

NCSoft, known for successful MMOs like Guild Wars 2, brings significant development expertise to the project. However, the recent discontinuation of its title "Battle Crush" just five months post-release in June 2024 introduces execution risk for "Steel Frontiers." The game's monetization model (paid or free-to-play) remains unannounced, which will be critical for its commercial viability and investor assessment.

The expansion underscores the high value of the Horizon IP, further evidenced by Sony's ongoing litigation against Tencent for a "slavish clone." While the general sentiment is mixed (0.1) with a neutral tone, the initiative represents Sony's effort to generate new revenue streams from licensing and new game sales, potentially increasing long-term shareholder value.

Key Decisions for Investors

• Investors should closely monitor SONY's execution and financial performance of "Horizon: Steel Frontiers" as it represents a significant push into mobile gaming and IP diversification beyond its console ecosystem.
• Evaluate NCSoft's ability to deliver a successful and sustainable MMO, given its mixed recent track record with "Battle Crush," and await details on the game's monetization model to assess revenue potential.
• Consider the potential, albeit indirect, revenue uplift for platform providers like Google (GOOGL, GOOG) and Apple (AAPL) from increased mobile game transactions, especially if "Steel Frontiers" achieves significant user adoption.