Korean game makers eye overseas markets in blockchain push

“Modoo Marble” [Image source: Netmarble]

Korean video game makers are looking at markets overseas as domestic regulators are putting the brake on games that use blockchain technologies.

Following recent court decisions banning play-to-earn (P2E) games, Korean game makers are establishing subsidiaries overseas to develop new games as part of their move into foreign markets, including the Middle East.

P2E games use cryptocurrency and non-fungible tokens as part of the play. Courts last month dismissed motions filed by Korean game makers, Sky People Company Corp. and Natris Corp., to cancel the regulator’s decision to not rate their P2E games. The Game Rating and Administration Committee decided not to rate those games, seeing their use of cryptocurrency and NFTs as having “speculative” elements.

The courts’ dismissal of the two game makers’ motions has now encouraged video game companies to find other options for blockchain games in other markets.

Netmarble Corp. through its subsidiary Marblex Inc. joined other companies to invest 400 million yen (3.7 billion won) into the Japanese blockchain game community YGG Japan last month. Other investors included Japanese game giant Sega Corp. and cryptocurrency exchange Coinchec Inc.

“We saw growth potential in the Japanese blockchain game market,” the company said. “Our focus will be mainly on expanding the blockchain game user base through the community.”

Earlier, Netmarble signed a memorandum of understanding with another exchange, Binance, on Jan. 11. The game maker plans to release “Modoo Marble: Meta World” sometime in the first quarter, a game based on its property rights to “Modoo Marble.”

“MIR M” [Image source: Wemade]

Wemade Co. is advancing into the Middle East and North Africa. The company established a subsidiary Wemix Mena Ltd. in the United Arab Emirates (UAE) on Jan. 16. The UAE subsidiary, which will cover the company’s blockchain business, is the company’s second overseas arm in the region, following its first subsidiary in Saudi Arabia. The company plans to use its latest global release “MIR M” and “MIR 4” to develop its blockchain game business.

Neowiz also established a subsidiary in the UAE in September through its blockchain platform Neopin. Korean game makers tend to favor Abu Dhabi and the Middle East because people there tend to play more hours and spend more in Korean games.

As of 2022, Southwest Asia and the Middle East were the top two regions where gamers played Korean games the longest. A Southwest Asian fan would play for 393 minutes per week, and a Middle Eastern fan would play for 377 minutes per week, according to Korea Creative Content Agency data. Average monthly spendings within Korean games were the highest in Qatar and in the UAE. The average monthly spendings in those top two countries were $76.20 (93,000 won) and $68.98, almost double the average spendings across all regions in the survey, which was $38.51.

Com2uS Holdings Corp. operates Web 3 games, an NFT marketplace, and its own metaverse platform Com2Verse, all on its blockchain network Xpla. Through these services, the company is promoting a “play-to-own” alternate to P2E.

Kakao Games Corp. recently started a global service of its golf game “Birdie Shot” through its blockchain subsidiary Meta Bora.

“Sluggish crypto asset markets and the ban on P2E games in the domestic market are believed to be transient event. Game makers will continue to seek blockchain options available now and overseas markets are good breakthrough points for that,” an industry insider said.