Korean game industry newcomers take market by storm with rising sales

Korean game industry newcomers take market by storm with rising sales

by Pranali Mehta

The South Korean game industry is witnessing a shift in dynamics as leading markets players from last year appear to be slipping as newcomers take over the overall market by storm, as evident from the sales reports of various companies. 

Krafton, notable for the online multiplayer game PUBG: Battlegrounds, and Kakao Games Corp., the video game unit of Kakao Corp. that hosts the mass multiplayer online role-playing game (MMORPG) Odin: Valhalla Rising, have reported a soar in sales on-year as the games gained global popularity.

In contrast, the three big game publishers, Nexon, Netmarble, and NCSoft, which are known as the 3N in the country and have been ruling the industry for years, recorded slow sales for their games owing to the lack of new game releases.

Industry watchers have suggested that it may also be due to increased operating expenses, such as salary hikes to attract talented developers and high marketing costs, along with the responsibility of being the first-generation game makers of the country.

According to the fourth-quarter predictions made by financial information service provider, FnGuide, it is estimated that Krafton and Kakao Games will see a rise of 25.4% and 116.2% in their annual sales, respectively, while Netmarble will see a 2.6% growth, Nexon a 9.2% and NCSoft a 2.1% growth from last year.

However, the fourth-quarter as well as the annual reports of the five companies are yet to be released and may show a difference in the actual figures.  

Kospi, the stock exchange market for all game companies, records Krafton posting ₩521.9 billion ($437.8 million) in sales during the third quarter, a 42.3% surge from last year in the same period, while Kakao Games posted ₩466.2 billion ($392 million) in sales in the third quarter, a record 210% surge on-year.

Netmarble, Nexon, and NCSoft, meanwhile, posted a negative growth rate in sales on-year.

Morgan Stanley Capital International has also added Kakao games and Krafton to the firms’ regional emerging market index after the companies had posted their quarterly figures, solidifying their position in the industry.

Source credit: http://www.koreaherald.com/view.php?ud=20211226000099

Pranali Mehta

A chemical engineer by qualification, Pranali Mehta dutifully walked down the slated path and worked in a chemical firm for a year. Her passion for writing however, pushed her into experimenting with the same as a career. With over three years of experience in content writ Read more...