"Will Paid Games Work?" Kakao Games Launches First New Title 'Elion' After IPO

[Asia Economy Reporter Buaeri] Kakao Games will officially launch its new title 'Elion' on the 10th, marking its first release since its initial public offering (IPO).

Kakao Games announced that it will begin the official domestic service of Elion at 2 PM on the same day. Elion is a PC massively multiplayer online role-playing game (MMORPG) developed by Krafton, the company behind the success of 'Battlegrounds (PUBG)'.

Elion boasts large-scale battles between users and stunning graphics as its strengths. It features 'skill customizing' with thousands of possible combinations and 'non-targeting' combat action.

Attention is also focused on whether Kakao Games' monetization strategy will succeed. Kakao Games has introduced the 'Buy-to-play' business model for the first time in domestic PC MMORPGs. To play Elion, users must purchase a minimum 9,900 KRW access pass. However, purchasing the pass once grants lifetime access to the game.

This differs from existing domestic games that generate revenue through item purchases and follows a model common in North America and Europe. The strategy is interpreted as aiming to prevent indiscriminate user influx and secure loyal customers. Kim Sang-gu, head of Kakao Games' PC business division, previously explained, "We will selectively provide a comfortable gaming environment only to users who purchase access passes, invite-only users, and PC room users."

Kakao Games and Krafton are positioning Elion as a new growth engine. Kakao Games needs a flagship PC game to drive performance after its listing. For Krafton, which has yet to release a major hit after PUBG, Elion is a hopeful title. Krafton, preparing for its IPO next year, currently relies heavily on PUBG for most of its revenue, making a follow-up hit crucial.

The securities industry predicts that Kakao Games' growth next year depends on the success of 'Elion.' Kim Dong-hee, a researcher at Meritz Securities, stated, "The expected revenue for Elion in 2020 is 60 billion KRW, which is 76% of the annual revenue of last year's PC game 'Lost Ark.' Kakao Games' mid- to long-term corporate value and growth direction next year will likely hinge on Elion's success."