Pokémon Go versus the Korean Gaming Industry

An existential threat? #hotgamingtakes

daniel so
Ampersand Media Lab
5 min readJul 14, 2016

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The Korean mobile gaming industry is deliberately using delay tactics against Pokémon Go.

There, I said it. It’s probably not true. But it feels cathartic to say it, especially as my disappointment in the game’s non-release is agonizingly reinforced every other hour as I check my app in vain, hoping by some miracle that Niantic Labs has unblocked Korea from their server.

What evidence do I have to support my probably false statement? Hearsay. (much props to the Pokémon Go Korea FB group for gathering most of this info). Time for a deep dive!

  1. An email that allegedly came from Pokémon Go Support:
Unfortunately, due to circumstances beyond our control, Korea will not be one of those markets

Unfortunately, due to circumstances beyong (sic) our control, Korea (Republic of) will not be one of those markets added to the Asian launch. We are monitoring and working closely with the South Korean government and gaming industry in South Korea, and hope to have the game available for those there to enjoy!

This email reveals that a.) Pokémon Go will not be launched in Korea any time soon, and b.) that there is significant resistance from both the Korean government and the Korean gaming industry.

2. The inconsistent logic being applied to Pokémon Go and Ingress

Niantic Labs, the genius developer behind Pokémon Go and a division of Alphabet (Google’s holding company), is not new to AR gaming. Their first game, Ingress, was launched in 2012(!) and has become a massive success. It is also available in Korea and is playable without any technical or legal complications. Pokémon Go and Ingress are extremely similar games, and one could argue that Pokémon Go is actually a pared down version of Ingress. Which begs the question — why is Ingress playable in Korea without issue but not Pokémon Go? Is it really a security issue, or is PoGo’s popularity too big of a threat?

3. Pokémon Go is another reminder of the Korean game industry’s inability to create memorable characters.

AR is not a new technology, and creating games like Pokémon Go is not that hard. After all, there was a game similar in concept created by Korean devs in 2011 called Olleh Catch Catch. Unfortunately this game was an abomination:

Much of this is because Korean games have forgettable characters. It’s not a design issue either, because there are a lot of great Korean graphic artists. It’s just that, for whatever reason, the concept of character and even story development is not highly valued. Instead, Korean games focus mostly on grinding and competitive multiplayer. So while Korean games can be madly fun and addictive, they don’t really create iconic gaming moments. You’ll never be emotionally scarred from a Korean game like you would when, say, Aerith dies in FF7.

These iconic moments of character development just don’t happen in Korean games.

I think when Korean game devs see all this commotion around Pokémon Go; about how people are planning grueling 4 hour roadtrips to the rural village of Seokcho — the one, isolated corner of the country where the game is playable — just to play the game; about how it’s making millions of dollars a day and is close to overtaking Twitter in DAU; I think when Korean devs hear all this, they feel frustrated at best and at worst, threatened. I think they’re saying to themselves: Hey. We can make this sort of game. The tech isn’t that hard, and we have the artists. But how can we compete with a franchise as iconic as Pokémon?

Netmarble’s VP of marketing’s reaction to rumors of PoGo’s release in Korea.

The Korean mobile game industry is huge. Despite having a population of only 50 million-ish people, Korea ranks as the third largest mobile gaming market in Asia with a value of $1.37 billion. Top grossing games in Korea are known to make over $500,000 in revenue per day. Netmarble, probably the leading Korean game developer with over 3,000 employees and 1 billion dollars in yearly sales, is aiming for an IPO valuation of around 7 billion dollars.

Netmable’s market valuation is similar in size to LG, a company that produces smartphones like the LG G5. This is relevant because LG, along with Samsung and other phone developers, were major players in the coordinated effort to impede another earth-shattering technology developed by a foreign company: the iPhone. I believe we are seeing a parallel situation here. Vested industry interests (Samsung, NetMarble) are caught with their pants down by a groundbreaking technology (smartphones, augmented reality) from a foreign company (Apple, Niantic), and thus use delay tactics to ensure they have ample time to develop their own offerings (Galaxy, some other AR game?) before the foreign intruders come barging through their door.

The point is that if there is a deliberate strategy being used to block PoGo from entering Korea, it wouldn’t be the first time the Korean government and its vested interests are impeding the entrance of a potentially industry-changing product from entering the market. I would not be surprised if PoGo was delayed for several months; and when it does open, it will just so happen to launch a week or two after the launch of a Netmarble AR game. Or maybe this is much ado over nothing.

All I know is I’m going to Seokcho this weekend to catch some Pokémon. See you in game.

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