Smilegate on track for video communication business with P.Pool

P.Pool [Courtesy of Smilegate]

Smilegate Holdings Inc., a South Korean major game company with an annual revenue of 1.5 trillion won ($1.17 billion), has ventured into the video communication platform market, aiming to carve a niche in the space dominated by multinational giants like Zoom, Microsoft and Cisco. With a focus on catering to individuals and communities, the company seeks to offer specialized services and tap into the market overlooked by established big players.

According to sources on Sunday, Smilegate unveiled the open beta version of its next-generation video communication service, P.Pool, on July 27 and is currently gathering user feedback. While the video communication platform market has mostly been monopolized by enterprise-oriented video conferencing services, one IT source commented, “There is undoubtedly a demand for user-centric services that utilize ‘video’ as a medium, much like the continuous emergence of services in the social media market, even if the video conferencing market is saturated.”

Smilegate’s strategy in this market centers around targeting B2C transactions and young consumers, including college students and various communities. Unlike business meeting-focused software such as Zoom and Teams, Smilegate aims to compete in services used for hobbies, leisure activities, and private gatherings tailored to the younger demographic.

Incorporating elements of fun and excitement from popular augmented reality (AR) games and avatars into the new service, P.Pool, the name itself signifies the combination of ‘Play’ and ‘Pool,’ representing the gathering of people for entertainment.

Smilegate previously launched the PC web version of P.Pool as a closed beta test (CBT) in November last year and has now initiated the open beta service for the mobile app after an interval of eight months.

Given the nature of the platform business, it is essential to attract as many users as possible in the early stages to expand the ecosystem and secure a fan base. Therefore, Smilegate emphasizes that all services offered by P.Pool can be used without time limitations, providing unlimited access to users. While the room creator needs to sign up for membership, invited participants can join without registering, ensuring greater openness. P.Pool offers two modes - the room mode, accommodating up to 25 participants, and the hall mode, which allows up to 1,000 people to gather together, according to the company.

In the fiscal year of 2022, Smilegate recorded a revenue of 1.57 trillion won and an operating profit of 643 billion won, with game business accounting for 87 percent of the revenue.

The video conferencing platform market experienced rapid growth in the aftermath of the Covid-19 pandemic, as flexible working arrangements spread across the industry. According to market research firm knowledge Sourcing Intelligence, the market size of video conferencing and related services is projected to grow to $28.82 billion in 2028 from $13.87 billion in 2021. However, with the recent transition to an endemic state, the previous surge has been abating.