'Continued Losses': Kakao Games Seeks Q4 Rebound with Dokkaebi's World (Comprehensive)

Third-quarter revenue of KRW 69.1 billion; operating loss of KRW 26.3 billion

"Dokkaebi's World" to launch globally in the second quarter of next year

"Continuing to streamline business operations and make strategic investments"

Kakao Games, which has posted operating losses for eight consecutive quarters due to a lack of new releases and declining sales of existing titles, will seek to turn things around starting in the fourth quarter of this year.

Kim Taehwan (right) and Lee Siwoo, co-CEOs of Kakao Games. Photo provided by Kakao Games.

Kakao Games said on November 4 that it posted consolidated revenue of KRW 69.1 billion and an operating loss of KRW 26.3 billion in the third quarter of this year. Revenue fell 46% year on year, while the operating loss widened.

By business segment, revenue from PC online games fell 57% year on year to KRW 18.5 billion. Mobile game revenue declined 40% over the same period to KRW 50.6 billion.

Kakao Games expects a turnaround starting in the fourth quarter, driven by the performance of "Dokkaebi's World." Since its release last month, the game climbed to No. 1 in Google Play's revenue rankings within five days and has remained near the top. Its strengths include a player-friendly monetization structure and 2.5D pixel art inspired by traditional Korean sensibilities.

Kakao Games also plans to launch the game globally on mobile platforms and Steam in February next year. At an earnings call on November 4, Kakao Games CEO Lee Siwoo said, "'Dokkaebi's World' is recording the highest actual user traffic of any massively multiplayer online role-playing game (MMORPG) the company has ever operated. We believe it can compete in global markets, thanks to its differentiated monetization structure and Korean-inspired worldbuilding."

The action-slash PC online game "Path of Exile 2" will also officially launch on December 12. The company is stepping up preparations for the simultaneous launch in Korea, Taiwan and Japan next January of the major MMORPG "Odin Q: Valkyrie Call."

Meanwhile, under its new management structure, Kakao Games is streamlining its business structure and pursuing mergers and acquisitions (M&A) and strategic investments to support medium- and long-term growth, as well as agreements for new titles. Building on its acquisition of global casual game company Me2on and its strategic investment in BackendX, an artificial intelligence (AI) backend technology company, both carried out over the past three months, Kakao Games will continue to seek out promising developers and technology companies.

Lee said, "Me2on has generated steady revenue and profit that do not depend on whether a new title becomes a hit. It will complement our business portfolio, which has experienced significant earnings volatility." He said the acquisition would reduce net debt by KRW 30 billion, making it possible to invest in growth while improving the company's financial structure. He added, "We will do our utmost to ensure that our efforts to launch new titles, return value to shareholders and invest to secure new growth opportunities lead to a meaningful recovery.

This content was produced with the assistance of AI translation services.