Mobile Games to Seek Breakthrough with Overseas Expansion

Faced with a complex distribution channel structure and saturated domestic demand, the Korean mobile gaming industry is seeking a way out with global services.

According to industry sources on June 12, a number of local mobile game developers are expanding their presence overseas to maximize profits. Some companies’ better-than-expected performance is getting a lot of attention.

HanbitSoft is enjoying tremendous popularity of its game, called “FC Manager Mobile 2014,” which was launched on Google’s and Apple’s app markets in 30 countries including Japan, East Asia, and Latin America, using Line’s gaming platform. The gaming company forged a partnership with Line to introduce this game with the 2014 World Cup. The popularity of the game reflects the power of Line’s platform.  

Com2us is winging for a rebirth, helped by the success of “Ace Fishing: Wild Catch” and “Summoners War: Sky Arena” in the global market, after its influence in the local market was greatly weakened by the hugely popular Kakao Games. Its success is drawing a lot of attention, since the company did not go through influential mobile game channeling platforms such as KakaoTalk and Line.

Actozsoft has recently been seeking a way out with overseas expansion, following its struggle in the local market stemming from its failure to produce successful works after “Million Arthur.” After launching “One For Eleven” in 25 languages and 130 countries, the firm introduced “Iron Knights” to five countries including the Philippines and Vietnam, and the mobile game received a warm response from those markets. 

Incross’ exponential growth is also noticeable. The company, which became known in the local market for its game “Legend of Gods,” was not famous despite its good performance. However, after releasing the same game in the Japanese market, it ranked second on the App Store charts for free games in Japan. 

An industry source said, “Local mobile gaming companies with low price-to-earnings ratios have no choice but to penetrate global markets in order to survive, due to the unfavorable distribution channel structure.” The source added, “They are seeking a way out by building partnerships with major platforms utilizing increased demands during this year’s World Cup season, or by maximizing their publishing capability, which will determine the fate of their businesses.”