[Pangyo Game] Grounds for “3N” are Shaking… Krafton, Smilegate, Kakaogames, Pearl Abyss (KSKP) are Quickly Catching Up

LOS ANGELES, CA, July 01, 2021 /24-7PressRelease/ — When will an era of the 3N’s including NC Soft, Nexon, Netmarble taking the lead in the gaming industry come to an end? This year, medium-sized gaming companies are rapidly catching up. Not only are the popularity of their games but also their performances catching up with those of the 3N’s driving change to the landscape of industry.

On the 21st, according sources in the industry, medium-sized gaming companies are growing rapidly and posing a threat to Krafton, Smilegate, Pearl Abyss. Krafton is considered almost as big as the 3N’s.

Today, the over-the-counter market capitalization of Krafton which is planning to go public reaches about 25 trillion won. It surpasses those of NC Soft and Netmarble.

The same goes for company performance. Last year, the operating profit of Krafton recorded three times that of Netmarble. Its operating profit to sales is also bigger than that of Nexon•Netmarble. In terms of IP expansion, it is projected that it has high growth potential.

Smilegate has emerged as a company that would disrupt the landscape. Smilegate has joined the one trillion annual sales club last year for the first time since it was founded.

Smilegate is producing solid performance in the global market. It is being well-received by users overseas as 80% of its last year’s sales came from other countries.

In addition, Smilegate stands out in the game IP content business. Last year, Smilegate released a drama using a game “cross fire” in China. Its accumulated views hit 1.8 billion. Moreover, it is widely known that it is making a film in the US.

Kakao games and Pearl Abyss are expanding businesses through M&A.

Last year, Kakao games has become the biggest stockholder by making investments worth of 193.5 billion won in Neptune, a game developer. In July, it is planning to finalize the merger between its subsidiary company Friends games and a software developer Way2bit through which it aims to expand blockchain-based metaverse business.

Last month, Pearl Abyss also acquired 100% of shares of Factorial games, a game developer well-known for its game “Lost Kingdom.” Other than the biggest IP of Pearl Abyss “Black desert,” it is planning to strengthen its portfolio through various genres of games.

An industry insider said, “medium-sized gaming companies which served as the backbone of gaming industry are catching up fast. In order to sustain business growth, they would need to keep developing solid games.”

Pangyo Technovalley is an innovation hub for global companies comparable to the Silicon Valley in the US, Zhongguancun in China, and STATION F in France. It is an Asia tech hub with 1,259 IT, BT, CT, and NT companies that possess innovative products and technologies. Located just south of the metropolitan area, it provides the best environment for Korean companies to do business with great transportation access and infrastructure.

Various high-tech companies are located in Pangyo Technovalley, and it is occupied by 64,000 full-time employees, many in their 20-30s. In terms of industry, the companies are engaged in information technology, contents technology, biotechnology, and nanotechnology.

With the support of innovative companies with global capabilities such as Kakao, Naver, AhnLab, Krafton, NCSoft, Nexon, and Hancom, companies in Pangyo Technovalley recorded 107 trillion won in sales last year. Investment and infrastructure growth in Pangyo is expected to continue, with the Metaverse hub entering Pangyo this year.

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Source: 24-7PressRelease.com

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