status of korean game industry
DESCRIPTION
Some figures of Korean game industry and thoughts for innovation policiesTRANSCRIPT
Status of Korean Game Industry
18.11.2013
Seogwon Hwang
Research Fellow at STEPI in Korea
Market Size
(100 Million KRW)
* 1 USD = 1063.5 KRW (15.11.2013)
Source: KOCCA, White Paper on Korean Games ( 2013), modified by the author
Ocean Story Scandal
Global Market Share
Global Market 111.8 BUSD
Korean Share 7.1 BUSD
6.3%
Source: created based on KOCCA’s White Paper on Korean Games ( 2013)
Market Segments
Online video
mobile
PC games
Arcade games
PC bang
arcades
Source: KOCCA, White Paper on Korean Games ( 2013), modified by the author
Exports and Imports
EX IM
EX: Exports, IM: Imports (1000 US$)
online video mobile arcade PC total
Very weak in console games
Source: KOCCA, White Paper on Korean Games ( 2013), modified by the author
Export Details
China
Japan
North America
South East Asia
Europe miscellaneous
Source: KOCCA, White Paper on Korean Games ( 2013), modified by the author
Number of Game Companies
1017
957
2011 2012
Source: created based on KOCCA’s White Paper on Korean Games ( 2013)
Number of Employees
2010 2011 2012 CAGR
Production and Publishing
48,585 51,859 52,466 3.90 %
PC Bang and Arcades
46,388 43,156 42,585 -4.20 %
Total 94,973 95,015 95,051 0.00 %
Source: KOCCA, White Paper on Korean Games ( 2013), modified by the author
Macro culture: Hot wind blowing in cold winter
• From online RPG to mobile ?
• Not that huge success story from start ups
• Successful game platforms based on messenger services
– Kakao, Line
• Politicians call Game as one of the four social evils (Drug, Alcohol, Gambling and Game)
• Conflict between the industry and politics which is supported by parents and medical doctors
Profitability = Sustainability
• Revenue: Power function of Ranking
in Market Places – Mean value low, median much
lower – Winner takes all
• Many success stories. But what about the whole ecosystem? – Still profitable for most of
'normally good talented' people?
– Common belief that every one can succeed. "Don't give up!" (One of the most common slogans in SLUSH13) But, really?
Daily Revenue (US$)
Appstore Ranking
Source: Hwang S. and Kim S. (2012), Profitability Analysis of Mobile Applications, presented at IT Service Conference in Seoul (in Korean)
𝐥𝐧 𝒚 = 𝟗. 𝟏 − 𝟏. 𝟏 𝐥𝐧𝒙
Open Platforms
• Openness and freedom for users
– Firms to seek locked-in users but users to seek freedom
• Tizen by Samsung and Intel
– Tizen might be another competing private platform if they succeed
• From de facto standards to de jure standards
– Policies need to do more to make users free
Thank You [email protected]