"Games Are All About the Feel"...Will Console Games Hit the Jackpot?

Domestic Market Doubles in 3 Years
PlayStation, Xbox, Nintendo Drive Growth
Korean-Language Game Releases Also Contribute
Next-Gen Device Pre-Orders Soar
3N Prepare to Transform Long-Running PC Games

[Asia Economy Reporter Jin-gyu Lee] The domestic console game market has more than doubled in size over the past three years. Unlike PC and mobile games, which mainly focus on long-duration massively multiplayer online role-playing games (MMORPGs), users are flocking to console games that can be enjoyed lightly in a short amount of time. With the release of next-generation consoles such as Microsoft's Xbox Series X and Sony's PlayStation 5 (PS5), and the successive launch of console games based on long-standing PC games, a console game boom is anticipated.

Domestic Console Market More Than Doubles in Three Years

According to the Korea Creative Content Agency on the 7th, the size of the domestic console game market grew from 262.7 billion KRW in 2016 to 373.4 billion KRW in 2017, 528.5 billion KRW in 2018, and an estimated 600 billion KRW last year, more than doubling in three years. The growth of the console game market was largely driven by the success of the Xbox One, PS4, and Nintendo Switch. The so-called 8th generation consoles, including the PS4 released in 2013 and the Xbox One in 2014, gained worldwide popularity, leading to an increase in domestic console game users. The PS4, regarded as a masterpiece of console gaming, has sold over 110 million units worldwide, while the Xbox One has sold more than 50 million units. An industry insider said, "Until the early 2010s, most console games were released in English or Japanese, creating a high entry barrier for domestic users. However, starting with the PS4 and Xbox One, games began to be released in Korean, and many developers started creating games in multiple languages from the development stage, which increased the number of domestic console users." The addition of the Nintendo Switch in 2017 further accelerated the growth of the console market.

This year, the COVID-19 pandemic has also contributed to the increase in 'stay-at-home' users. The unexpected popularity of Nintendo Switch's Animal Crossing: New Horizons, released in March, is seen as part of this trend. Despite the ongoing boycott of Japanese products due to diplomatic tensions, a large crowd gathered to purchase Animal Crossing in Korea, creating a surprising phenomenon. Professor Wi Jeong-hyun of Chung-Ang University, who serves as the president of the Korea Game Society, explained, "From the 2010s, domestic representative mobile games, like PC games, have mainly focused on long-duration MMORPGs, making it difficult for casual players to easily access them. Instead, many people who want to enjoy games lightly in a short time are flocking to console games."

Market Expected to Grow Further with Next-Generation Consoles

The upcoming release of next-generation consoles PS5 and Xbox Series X in November, marking a generational shift in console gaming after seven years, is also a positive factor. The PS5, launching on November 12, and the Xbox Series X, releasing on November 10, held pre-orders in Korea last month, which sold out within minutes, signaling strong demand. Additionally, the domestic gaming industry's big three, known as 3N (Nexon, NCSoft, Netmarble), plan to release major console titles based on long-standing PC game intellectual properties (IPs), raising expectations further. Netmarble is set to launch its first console game, Seven Knights: Time Wonder, on the Nintendo Switch next month. Seven Knights, released in 2014, is Netmarble's flagship mobile game with 60 million global downloads. NCSoft is in the final stages of developing Project TL (tentative title), a console game based on its flagship PC game Lineage, targeting release on next-generation consoles. Nexon, which sparked a KartRider boom with its mobile game KartRider Rush+, also plans to release a console game using the KartRider IP soon. KartRider Drift is scheduled for release on the Xbox Series X, while the PS5 release remains undecided.