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Game-Time report/As an out-and-out big year, 2023 will be a year full of surprises, regrets and setbacks for the domestic and foreign game industry.
Recently, the Korean media GameVU also summarized the top 10 news of the Korean game industry this year. We might as well take a look at what the game industry will look like this year from their perspective.
1. Popular sales and outstanding performance of Korean local games
This year, many Korean games were released on PC and console platforms. Including “Pinocchio’s Lie” by Neowiz, “Dave the Diver” by Nexon, etc.
Among them, “Pinocchio’s Lie” won the grand prize at the 2023 Game Awards and five other awards in South Korea, and also won multiple awards abroad. Sales exceeded 1 million copies within one month of the game’s release, and although there is no official announcement, sales are expected to reach 2 million copies within the year.
“Dave the Diver” scored highly in user and media reviews and was certified as a “must play game” with sales exceeding 2 million copies.
2. Frequent good news in the field of e-sports
This year, South Korea has received continuous good news in the field of e-sports. At the Hangzhou Asian Games, South Korea won gold medals in the “Street Fighter 6” and “League of Legends” projects, and also achieved good results in the “PUBG Mobile” and “FIFA Online” projects.
In the 2023 World Championship, known as the “League of Legends World Cup”, South Korea’s T1 team defeated China’s WBG and won the championship. In addition, Danawa also won the championship in the PGC 2023, the global competition of “PlayerUnknown’s Battlegrounds”.
3. The rise of subculture games (two-dimensional games) as mainstream culture
This year, the number of game types known as “subculture (two-dimensional)” has increased significantly. Starting with “Ever Soul” by Kakao Games, many such games have been released one after another. At this year’s G-Star Game Show, a number of new subculture works were also displayed.
In addition, games such as MiHoYo’s “Genshin Impact”, Nexon’s “Blue Files”, Kakao Games’ “Horse Girl”, Shift Up’s “Nikke” and other games already on the service have hosted and participated in multiple events. The event creates a sensation every time. As a result, this year there has been a growing chorus of voices arguing that these games should no longer be called subcultures.
4. The end of the 3N era, Nexon’s dominance, and the rise of SK2
The Korean gaming industry was once dominated by three companies: Nexon, NCSoft and Netmarble (collectively known as 3N). But this year, the performance differences between the three companies are obvious. Nexon is expected to achieve annual sales exceeding 4 trillion won for the first time, and expects profits to exceed 1 trillion won. NCSoft and Netmarble expect sales and profits to decline.
Meanwhile, companies such as Krafton, Smilegate and Kakao Games (collectively known as SK2) continue to grow. In particular, Krafton and Smilegate’s growth in operating profits is enough to threaten 3N. Therefore, the performance ranking of the gaming industry may undergo significant changes in the future.
5.The gaming industry is swept by the artificial intelligence craze
The artificial intelligence boom triggered by ChatGPT has also had a strong impact on the gaming industry. Not only foreign game companies, but also Korean game companies have begun to recruit AI researchers and carry out related projects, applying AI technology to game development to improve development speed and quality. There are even AI-based game tutoring services.
In South Korea, companies including NCSoft, Smilegate, Nexon, Netmarble, Com2uS, Neowiz and other companies are actively responding to AI. In addition, Krafton also launched Rellu Games, which specializes in AI-based game development, and has successively demonstrated a series of results.
6. The prosperity of global game exhibitions and the end of E3
As the impact of the epidemic gradually ends, game exhibitions have become active again. Germany’s Gamescom, Japan’s Tokyo Game Show and South Korea’s G-Star attracted many companies to participate in the exhibition, attracting a large number of visitors and regaining their pre-epidemic vitality.
However, E3, once one of the world’s three major game shows, announced its end. E3, which began in 1995, has been criticized for changes in the way game companies promote themselves, higher participation fees and ticket prices compared to other game shows, and rampant unfair practices. The impact of the epidemic became the final blow, causing it to announce its suspension and a gloomy end.
7. Wemix tokens have experienced ups and downs, and related controversies have gradually subsided.
Wemade’s virtual asset Wemix has had its ups and downs this year. It was delisted from major Korean exchanges late last year but was relisted on most Korean exchanges this year. With the end of the cryptocurrency winter, Wemix has shown a leading trend in the blockchain game platform and achieved remarkable results.
In addition, although controversies were raised about South Korean congressmen’s cryptocurrency investments and Wemade’s involvement, these controversies gradually subsided due to a lack of evidence. The controversy raised by the Korean Game Association about legislative lobbying in Congress has also gradually diminished due to a lack of evidence, and Wemade’s image has gradually improved.
8. The sexism controversy faced by the gaming industry
In November this year, some works produced by outsourced studios sparked sexism controversy. The work contained discriminatory expressions against men. This issue was subsequently found in many other works, causing widespread controversy.
In the face of controversy, game companies responded quickly. Meanwhile, women’s groups and the Democratic Labor Confederation have criticized gaming companies. While the incident rippled across political circles, most reactions still viewed gaming companies as victims.
9. Legal disputes, some are ongoing and some have ended
Legal disputes between game companies have been particularly frequent this year. In the copyright lawsuit between NCSoft and Webzen related to Lineage M, NCSoft won in the first instance. At the same time, NCSoft also filed a lawsuit against Kakao Games and XL Games for Lineage 2M.
In addition, Nexon also filed a project leak and copyright lawsuit against Ironmace for “Dark and Darker”.
On the other hand, Wemade and Actoz Soft, as well as Lansha, who have been involved in a long-running legal dispute over the Legends series, have dramatically transformed into a partnership. They withdrew their previous lawsuit and entered into a licensing agreement from which both parties benefited.
10. The game industry is facing a cold wind, with declining performance and reduced number of employees.
Everyone is having a hard time
As the impact of the epidemic gradually ends, the gaming industry, which once benefited from the special situation, has experienced a particularly declining performance this year. As a result, many gaming companies have taken measures such as reducing their employees and company size.
This includes not only large game companies such as NCSoft and Com2uS, but also companies such as Line Games, Devsisters, and NPixel, which have also implemented business reorganization, employee relocation, and encouragement of resignations.
However, at the same time, trade union organizations in the Korean game industry also began to form.
