Positive factors in the trend of the game industry in 2023 (EN)
Index
Intro
Economic Positive Factors of the Game Industry
Trends in Korean Game Companies
Trends in Global Game Companies
Conclusion
Intro
As the new year begins, the prevailing economic stories that can be heard around us are mostly negative forecasts. The combination of excessive liquidity’s side effects and the changing global supply chain, as well as risks such as geopolitical risks, clearly indicates a new environment that we have not experienced before. Despite this, the gaming industry is expected to seize new opportunities and progress in 23, creating a new 23 year. In this article, we will try to confirm the positive factors for the gaming industry compared to other industries, and at the same time, the situation where the transition to Web3 is accelerated.
Economic Positive Factors of the Game Industry
According to Morgan Stanley, the gaming market was a sector that consumers opened their wallets for even during difficult economic times.
This background is interpreted as the fact that the content of games, which can easily be enjoyed in a difficult economic environment, has played a role. In addition, the fact that games that have delayed their release until 22 have been announced to be released in a large number in 23 is also a positive factor.
On the other hand, the fact that regulation in China has been eased since September 22 in the content sector is also positive. As licenses for games that have not been approved previously are approved and distribution becomes possible, it is expected that this trend will continue in 23.
These international and economic factors can be seen as a positive outlook for the gaming industry and provide a basis for anticipating maintenance or expansion rather than a reduction in overall money flow. At least it is possible to classify it as a sector in which investment is possible, taking into account the low valuation that has been observed so far.
Trends in Korean game companies
Even with the expected economic downturn, Korean game companies are also expected to release a large number of new works this year in an effort to improve profitability. As a result, Korean securities companies also expect improved earnings consensus compared to last year.
This trend is expected to also affect the new web3-related game and NFT markets. If the results are maintained or upward in the economic downturn, the relative effect may be greater, but it will also be a factor that can effectively attract the public’s attention. In addition, it is noticeable that domestic game developers are attempting to transition web2 games to web3 through the construction of metaverses. Krafton is aiming to build a creator-centric metaverse “Migaloo” in collaboration with Naver this year, and Netmarble is also planning to launch “Modoo Marble” in addition to the already released “King of Fighter’s Arena” through MarbleX, building an ecosystem. In addition, Neowiz is also planning to launch games through its blockchain platform “Intella X,” which includes a wallet and NFT marketplace.
Trends in Global Game Companies
French game company Ubisoft is supporting start-up companies through its accelerator program and maintains a positive perception of web3.
Examples of projects supported by Ubisoft
In addition to projects, there have also been cases of funding participation in web3 game companies. Ubisoft and Take two Interactive also decided to invest in Horizon.
The continuation of investment can also be seen in Japan. Square Enix, a Japanese game company famous for the Final Fantasy series, announced the first original game implemented based on Ethereum NFT in November of last year, and in the New Year’s greeting, it showed its commitment to the web3 game industry by saying “We will focus on blockchain games.” In addition, Square Enix recently announced that it will participate in the digital trading card game “Cross the Ages,” developed by Polygon, and invested in blockchain game startup ZEBEDE.
On the other hand, in September of 22, Savvy Games Group (“SGG”) announced that it will establish a global game and e-sports hub in Saudi Arabia, and signed a memorandum of understanding with Saudi Arabian company NEOM to cooperate in the development of a game ecosystem. SGG plans to develop a next-generation game platform using web3 technology and blockchain.
Conclusion
It is not necessary to be overly pessimistic about the outlook for the gaming industry in 23. Game companies are also showing sustained interest and ongoing projects in the full-onboarding of web3-related games. This year is expected to see growth in this trend. During this process, the emergence of killer apps or content would be the best situation. The vivid memories of “AXIE,” which played a pioneering role in P2E, stimulate imagination from the perspective of expecting such a trend this year. 23 will be an interesting year in the transition from web2 to web3.
