K-Games Turning to North America... "Where Word of Mouth Leads to Big Hits"

Neptune Expects Synergy in US Market with Acquisition of Ikei Games
Word-of-Mouth on Genre Diversity Could Boost Popularity

Game companies hit hard domestically due to economic uncertainty and lack of blockbuster releases are seeking breakthroughs in the U.S. market.

According to industry sources on the 19th, game company Neptune recently acquired the domestic mobile game company IKE Games. As of last year, IKE Games recorded sales of 13.8 billion KRW and operating profit of 3.5 billion KRW, with about 70% of its sales coming from overseas markets. It is reported that the decisive factor behind Neptune's decision to acquire IKE Games was the response from the North American market.

The mobile game "Raising an F-Rank Hero," which the company operates, has recorded 1 million downloads, with more than half of its revenue coming from North America. Neptune is also targeting the North American market and sees the acquisition of IKE Games as a boost.

North America, along with China, is considered one of the largest gaming markets in the world. In particular, the influence of the United States is significant. According to data from the Korea Creative Content Agency, as of 2021, the U.S. gaming market accounted for 22.0%, followed by China (20.4%), Japan (10.3%), and South Korea (7.6%).

One notable advantage of the North American market is that games can enjoy long-term popularity after release. Unlike the domestic market, where success or failure is determined early, the North American market, including the U.S., can see games gain traction through word of mouth even after a considerable period. IKE Games' "Raising an F-Rank Hero" officially launched in December 2022 but began attracting attention several months later.

A Neptune official said, "In North America, companies like Candy Crush Saga generate trillion-won scale revenues with puzzle games, and it is a market where expectations can be held for up to a year after a game's release."

For this reason, the U.S. market is considered a blue ocean for domestic game companies. Pearl Abyss demonstrated videos of Black Desert and Crimson Desert at CES 2024, the world's largest electronics and IT exhibition held in Las Vegas earlier this month. Pearl Abyss has participated in CES for two consecutive years with Samsung Display, focusing on expanding into the North American market. Black Desert, which recently celebrated its 10th anniversary, is gaining attention from U.S. users. Neowiz targeted the U.S. market, which has many console gamers, by releasing "P's Falsehood" in September last year and establishing a new corporation in California. "P's Falsehood" recorded global sales of 1 million copies, proving the potential of domestic console games.

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