Game Companies Crossing Boundaries... Diversifying Platforms Through Consecutive Investments

Console No.1 Japan Sony Acquires European Mobile Game Company
Kakao Games Continues Investing in PC and Console Game Companies

[Asia Economy Reporter Yuri Choi] The gaming industry is expanding its main platforms and new business areas through a series of investments. Global console giants are investing in mobile game companies, while domestic mobile game companies are investing in console and PC game companies, diversifying their platforms.

According to the gaming industry on the 16th, Japan's Sony recently acquired European mobile game company Savage Game Studios. Savage, which has extensive experience in producing mobile games, is known to be developing a AAA-level (large-scale) mobile action game. Savage will be organized under the mobile business division. Last month, Sony established the 'PlayStation Studio Mobile Business Division' to expand its mobile business. It operates independently from the console division and is responsible for developing mobile games based on Sony's intellectual property (IP).

Sony, the undisputed number one in the console market, acquired a game company to expand into the mobile market. Previously, Sony announced plans to increase the share of PC and mobile platforms to 50% by 2025. Currently, PC and mobile account for 20% and 10%, respectively.

Earlier this year, the major U.S. game company Take-Two Interactive acquired mobile game company Zynga for about 15 trillion won. Take-Two, famous for the 'GTA' and 'Civilization' series, has focused on console and PC games. It made a bold investment to release existing IPs in mobile versions.

Domestic game companies, which have focused on mobile games, are expanding into console and PC areas. Kakao Games affiliate Neptune invested 1 billion won last month in console game developer Grumpy. Grumpy is currently servicing the console game 'Dogfighter - World War 2' and is developing 'Disorder,' an action and character-focused game based on PlayStation 5.

They are also accelerating their approach to PC games. Earlier this year, Kakao Games invested 24 billion won in the U.S. game developer Frost Giant Studios through its European subsidiary. Frost Giant is a company formed by key developers of ‘StarCraft 2’ and ‘Warcraft 3’ and is developing the PC and console-based real-time strategy simulation game 'Stormgate.' In April, Kakao Games also invested 18.3 billion won in cloud game developer Playable Worlds. Playable Worlds is currently developing a cloud-based massively multiplayer online role-playing game (MMORPG) and a metaverse platform capable of game distribution services.

Game companies are investing in developers one after another to diversify their platforms. While mobile games account for more than 50%, console and PC games each hold about 20% of the market. Platform diversification is also essential for overseas expansion.

An industry insider said, "Rather than competing solely on a specific platform, companies are seeking to diversify their revenue streams across multiple platforms," adding, "Domestic game companies will also increase investments in console and PC game companies because there are limits to mobile alone."