While the COVID-19 Pandemic Slowed the Gaming Industry... Chinese Mobile Games Close in on Korea's Heels

AFK Arena Ranks 3rd in Google Play and Apple App Store Revenue
Surpasses Nexon Mobile Blockbuster 'V4' in Less Than Two Weeks Since Launch
Nexon, NCSoft and Others Contemplate Global Release Timing for Mobile Blockbusters

[Asia Economy Reporter Jin-gyu Lee] As Chinese mobile games climb to the top ranks in domestic game charts, native Korean game developers are becoming increasingly anxious. The issue of Chinese game licenses (distribution permits) has taken a backseat due to the impact of the novel coronavirus (COVID-19), putting domestic developers in a position where they may have to concede their home turf.

According to mobile app ranking analysis site Gamevolution on the 28th, Chinese game company Lilith Games' idle role-playing game (RPG) 'AFK Arena,' released domestically on the 12th, ranked 3rd in revenue on both Google Play and the Apple App Store. It surpassed Nexon's major mobile title 'V4' in less than two weeks since its release. It has now climbed to just behind NCSoft's 'Lineage 2M' and 'Lineage M,' which are considered the pride of domestic mobile games. Additionally, Lilith Games' mobile strategy game 'Rise of Kingdoms,' launched last September, has maintained top revenue rankings on both major application markets for over five months, threatening the Lineage series and V4. Yostar's manga-style character development mobile game 'Arknights,' released domestically on the 16th of last month, also ranked 4th in revenue on the App Store and 7th on Google Play. Half of the top 10 revenue rankings on domestic Google Play, which had been reclaimed by Lineage 2M and V4, have now been overtaken by Chinese games.

In this situation, domestic companies are increasingly concerned about the global release of major mobile titles. Tencent, which operates Dungeon & Fighter (DNF) services in China, began accepting pre-registrations for the closed beta test (CBT) of the new title 'DNF Mobile' on December 30 last year. The local anticipation was high, with pre-registrations surpassing 12 million by January 8, less than ten days later. Initially, Tencent expected over 40 million pre-registrations for DNF Mobile, but the growth slowed after the COVID-19 outbreak, and the current number of pre-registrations remains in the 18 million range. A Nexon official stated, "The release schedule for DNF Mobile in China has not been decided, but the goal to launch within the first half of the year remains." The global release of Lineage 2M this year has also been affected by COVID-19. NCSoft CFO Yoon Jae-soo mentioned during a conference call on the 12th, "The development team is struggling to meet the high domestic demand for Lineage 2M, so they cannot fully focus on preparations for overseas expansion," adding, "The timing and countries for overseas release have not yet been decided." An industry insider explained, "The development team faces strict network separation both inside and outside the company, which limits their ability to develop games while working remotely."

Meanwhile, expectations had been rising that the issuance of game licenses would resume around the time of Chinese President Xi Jinping's visit to Korea in the first half of this year, but the spread of COVID-19 has made it difficult to remain optimistic about the resumption of license issuance.

This content was produced with the assistance of AI translation services.