Game companies aim to increase overseas growth

[Courtesy of Netmarble Corp.]

South Korean game publishers are set to release highly anticipated titles with substantial development budgets that are targeting major markets such as Europe, Japan, and the Middle East, and hope this will help boost their performances in the second half of 2024.

According to industry sources on Sunday, major game companies including Netmarble Corp., NCSoft Corp., and Devsisters Corp. plan to launch new intellectual properties (IPs) globally starting in June 2024. Unlike in the past, the companies have prepared new games that cater to international tastes, including those in the casual, action, and idle role-playing game (RPG) genres.

Netmarble is preparing for the global launch of “The Seven Deadly Sins: Grand Cross,” which is based on a manga IP with over 55 million copies sold, and “King Arthur: Legends Rise,” a collectible RPG.

Krafton, which has the highest share of overseas revenue among Korean game companies, is set to release the mobile game “Dark and Darker” globally within 2024.

Krafton reported 310.5 billion won ($224.5 million) in operating profit in the first quarter of the year, with record sales of 665.9 billion won. Of its entire revenue, 94 percent was from overseas.

Netmarble, which had recorded seven consecutive quarters of losses until the third quarter of 2023, turned a profit in the first quarter of 2024 with an operating profit of 33.7 billion won, largely due to improved performance overseas, which accounts for 83 percent of its revenue.

Korean game companies are also actively entering the console market to enhance their global presence.

NCSoft will officially launch its action game “Battle Crush” for Nintendo Switch and PC in June 2024, after testing it in 97 countries in North America, Europe, and Asia in March.

NCSoft plans to release “TL” on console and PC platforms within the year in collaboration with Amazon Games.

Industry experts predict that Korean game companies with high overseas revenue proportions will continue to benefit from the strong dollar trend. Unlike industries directly affected by raw material price fluctuations, game companies can expect favorable exchange gains since most international users pay in U.S. dollars.

[Graphics by Song Ji-yoon and Lee Eun-joo]

The Korean gaming market’s slower growth is another reason for these companies to focus on overseas markets.

NCSoft, which has a relatively low overseas revenue proportion among the major game publishers, is exploring various strategies, including organizational restructuring, to move away from its Korea-focused business model.

But for Korean game companies to achieve significant results in international markets, they will inevitably face fierce competition from Chinese companies, according to sources.

Chinese firms are expanding their influence in North America by leveraging substantial financial resources and development capabilities.

According to global research firm Sensor Tower, six out of the top 10 global mobile game revenue rankings were occupied by Chinese games in 2023, while they also swept the top three spots.

Krafton’s “PUBG: Battlegrounds” for mobile platform was the only Korean game to make it onto the top ten list, ranking seventh.