Korean game developers turn eyes to console game markets N. America, Europe

[Game image : TL, NC Soft]

South Korea’s game companies are developing new console games targeting North American and European markets with the goal of launching next year in hopes to offset stagnant sales in Korea and China.

North America and Europe are the largest console game markets in the world, commanding 83.5 percent of the total with combined sales reaching $60.1 billion, according to global consulting group PwC. North America had a 21.5 percent annual growth rate in the sector between 2020 and 2021, when the pandemic was at its worst. Unlike Korea and other Asian markets, console games are as popular as PC and mobile games in Western countries.

Korean game developers are turning their eyes to North America and Europe to leverage growing interest from consumers there toward Korean game titles, while their sales in the home market is lagging. The Korean game industry has grown since 2013, centering on the mobile game sector. According to Korea Creative Content Agency, domestic mobile game sales were estimated at 11.86 trillion won ($9.27 billion) last year, accounting for 59.2 percent of total sales.

The Korean mobile game market, which grew by nearly 40 percent in 2020, is expected to lose steam with a growth rate of 11.4 percent and 8.9 percent this year and next year, respectively.

China’s regulatory barrier for the game industry is another factor to drive Korean companies to move toward North America and Europe. China is still the world’s No. 1 game market with a market size of 296.5 billion yuan ($43 billion won), 2.7 times larger than that of Korea. However, gaming is a highly regulated industry in China. The Chinese government suspended online game licenses several times in the past. Only five Korean game titles received launching approval by Chinese authorities between 2018 and 2021.