G-STAR 2024 to Host Seminar "Beyond the Boundaries of Games"
"Game Industry Must Expand Across Multiple Channels to Increase Profitability"
Since the endemic phase, the gaming industry has been one of the fastest-growing sectors in entertainment and media. Globally, the gaming industry is growing at an annual rate of 4.2%, with projections estimating revenues to reach $330 billion (approximately 463 trillion KRW) by around 2028. In this context, domestic game companies are also discussing the need to expand their pipelines by entering new channels and regions.
Lee Jae-hyuk, Partner and Leader of the Game and Virtual Asset Industry at Samil PwC, is delivering a greeting at the seminar "Beyond the Boundaries of Games: Diversification and Its Financial Risks" held at G-STAR 2024. Photo by Samil PwC.
On the 15th, Samil PwC held a seminar on this topic at 'G-STAR 2024' held at BEXCO in Busan. The seminar, titled "Beyond the Boundaries of Gaming: Diversification and Financial Risks," was attended by key representatives from major game companies such as Nexon, Netmarble, and Wemade.
The seminar consisted of six sessions. In the first session, Partner Jeong Won-seok discussed global trends and opportunities in the gaming industry. He analyzed that revenues from social games and casual games are rising, and in-app advertising revenue is also growing rapidly. Additionally, it was noted that generative AI is creating new innovations in game development, but its long-term potential remains uncertain.
The next session featured Director Lee Kyung-min, who covered value-up programs and strategies for increasing the value of game companies. He compared the market value of domestic listed game companies with global companies and explained how much more growth is possible in the future.
The third session addressed P2E (Play-to-Earn) games, highlighting that due to stringent domestic and international regulations, the sustainability of this sector remains somewhat uncertain. The fourth session focused on M&A and investment management, sharing recent successful cases.
The last two sessions introduced tax issues and data analysis tools. In particular, they discussed how to manage tax risks related to overseas subsidiaries and how to detect fraudulent transactions using analysis tools developed by Samil PwC.
After the seminar, Leader Lee Jae-hyuk spoke about diversifying game development by utilizing IPs such as webtoons and movies, and emphasized the necessity of complying with capital market regulations. He expressed hope that this seminar would help address industry concerns. Reviews and analysis related to this G-STAR event will be made available on the Samil PwC website and YouTube channel.
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