South Korean game companies are focusing on acquiring intellectual property (IP) by investing in or acquiring development studios to diversify their portfolios and explore overseas markets to overcome the industry downturn.
According to the gaming industry on Sept. 4, Nexon plans to enter the Chinese market through its subsidiary, Embark Studios. Acquired by Nexon in 2019, Embark is a Swedish development company composed of former Electronic Arts (EA) members who worked on the first-person shooter (FPS) game Battlefield. Nexon is leveraging Embark to expand into the Western gaming market. Embark’s shooting game The Finals, released last December, has reached a peak concurrent user count of 240,000.
For the Chinese market, Nexon has signed a publishing deal with Tencent for The Finals and the upcoming game ARC Raiders. The goal is to localize the content to cater to Chinese users’ preferences. At a capital market briefing in Tokyo on Sept. 3, Nexon Japan CEO Lee Jung-hun stated that Tencent will handle content localization, and Embark may incorporate Tencent’s ideas back into the original game.
ARC Raiders is an extraction game set on a futuristic Earth, where players survive against machines and other players while gathering resources. Embark’s Communications Director, Sven Grundberg, described it as a third-person player vs player vs environment (PvPvE) action survival shooter, emphasizing immersion, tension, and deep gameplay.
In July, NCSoft announced a $3.5 million initial investment in Swedish startup Moon Rover Games, forging a strategic partnership. Founded in 2022 by veteran EA DICE developers, Moon Rover is developing Project Aldous, a co-op FPS for PC and consoles. NCSoft is the sole investor in this round, providing the necessary funding for Project Aldous and recognizing Moon Rover Games’ potential for innovation in the shooting genre.
NCSoft co-CEO Park Byung-moo said, “Project Aldous will complement NCSoft’s existing projects both in genre and regional focus,” adding, “We expect this investment to contribute to building global development clusters and expanding our market reach.”
The company also invested 37 billion won ($28 million) in shares and rights of Vic Game Studios, a South Korean developer specializing in subculture games. NCSoft continues to explore mergers and acquisitions to boost growth and profitability, with plans to invest in expanding its presence across regions, genres, and platforms. It has also established an M&A task force to drive these efforts.
Krafton has invested in 27 companies since going public in 2021, including 14 in North America and eight in Europe. It recently invested in Cypriot startup Eschatology Entertainment. Eschatology announced that it secured Series A funding led by Krafton, with an investment of $11.3 million. Founded in 2022 by developers of the hit online tank shooter World of Tanks, Eschatology is developing an FPS game set in a world that combines Western and apocalyptic themes.
