Kakao Games on the Rise: "I'm the Star of G-Star Too" [Buaeri's Game Dictionary]

Visitors are gathered at the Kakao Games booth at G-STAR 2021 held at BEXCO in Busan. Photo by Kakao Games

[Asia Economy Reporter Buaeri] Kakao Games, which caused a sensation this year in the domestic gaming industry with the mobile massively multiplayer online role-playing game (MMORPG) 'Odin: Valhalla Rising,' also made its presence felt at G-STAR, the largest game exhibition in Korea. It is being evaluated as having filled the void left by the 3N (NCSoft, Nexon, Netmarble), the elder statesmen of the gaming industry.

2K Fills G-STAR Without 3N

According to the G-STAR Organizing Committee on the 20th, 'G-STAR 2021,' which opened on the 17th at BEXCO in Busan, featured 1,393 booths from 672 companies across 40 countries. With the 3N absent for the first time this year, emerging forces Kakao Games and Krafton (2K) filled the gap. Kakao Games took the role of the main sponsor of G-STAR.

G-STAR resumed offline exhibitions after two years amid COVID-19. Although the atmosphere was unlike previous years, with visitor numbers limited to 6,000 per day, participants' interest remained high. Kakao Games, which set up the largest booth with 100 spaces, attracted many visitors. Kakao Games prominently showcased Odin as well as the survival game 'Eternal Return.'

Demonstrating the Power of 'Odin'

Odin, which shocked the market by pushing aside NCSoft's Lineage siblings (Lineage M and 2M), rose to become the best game of the year. Odin won the Grand Prize at the '2021 Korea Game Awards.'

The Game Awards are hosted by the Ministry of Culture, Sports and Tourism and organized by the Korea Game Industry Association to select the best game in Korea each year. The final decision is made through evaluations by a professional judging panel, votes from game industry experts and journalists, and general online voting. Odin won four awards, including Startup Company Award, Excellent Developer Award, and Graphic Technology Creation Award.

Odin was highly praised for breaking the domestic top revenue rankings that Lineage M series had dominated for over two years, proving its popularity as a 'game changer.' The judges commented, "With its vast open world and strategic battles, it has received favorable reviews from many users," and added, "Expectations for its future global expansion are also high."

Namgoong Hoon (left) and Jo Gye-hyun, Co-CEOs of Kakao Games

Record-Breaking Revenue and Global Advancement

Good winds continue to blow for Kakao Games. Thanks to Odin's blockbuster success, Kakao Games posted its best-ever performance in the third quarter this year. Kakao Games recorded 466.2 billion KRW in revenue and 42.7 billion KRW in operating profit in Q3. These figures represent increases of 210% and 101% respectively compared to the previous year. Odin's cumulative revenue has surpassed 400 billion KRW. According to securities firms, Kakao Games' revenue is expected to exceed 1 trillion KRW next year, with operating profit reaching around 280 billion KRW.

Building on its domestic success, Kakao Games is preparing for a global advance. Recently, Kakao Games reorganized its management system and added a 'Global Business Direction' under the dual CEO structure of Namgoong Hoon and Cho Gye-hyun. CEO Namgoong will focus on North America and Europe, while CEO Cho will target the Asian region for overseas market expansion.

Kakao Games is also expected to enter the Play to Earn (P2E) market, which has emerged as a new growth engine in the gaming industry. Kakao Games announced that its subsidiary Friends Games is developing a non-fungible token (NFT) marketplace specialized in sports, games, and the metaverse.

In a letter sent to shareholders on the 3rd, CEOs Namgoong and Cho emphasized, "All games serviced by Kakao Games will aim for global release," and added, "We will officially begin the transition to Season 2, aiming beyond Korea and beyond games."

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