Kakao Games Sees Explosive Growth: Q3 Revenue and Profit Soar, Paving the Way for a Major Comeback with New Game Lineup

Kakao Games’ third-quarter financial report released on the 6th showed that the company’s performance declined significantly. Operating profit was 5.7 billion won (approximately RMB 29.24 million), a significant decrease of 80% from 28.7 billion won in the same period last year. Sales were 193.9 billion won, a year-on-year decrease of 14.3%, with a net loss of 7.3 billion won.

The performance decline was mainly affected by the weakness of the mobile gaming business. Due to the poor performance of externally published games, mobile game sales fell to 126.6 billion won, a year-on-year decrease of 31.1%. However, the PC game business performed well, especially after the launch of a large-scale cooperation event for “PlayerUnknown’s Battlegrounds”, sales reached 34.2 billion won, a year-on-year increase of 196% and a month-on-month increase of 109%.

The company stated that it has recently implemented a series of strategic adjustments to focus on its core business, including the sale of Sena Technology shares and the reduction of part of the Kakao VX business. These adjustments have been reflected in the financial statements as gains and losses from discontinued operations.

Although overall operating expenses fell by 4.7% year-on-year to 188.2 billion won, the company increased manpower investment in the core game business, causing labor costs to increase to 45.3 billion won, an increase of 5.7%. In addition, PC game promotion and global marketing expenditures increased by 32.3%, resulting in marketing expenses of 15.2 billion won.

Looking ahead, Kakao Games has a series of plans for new game releases. The company will launch an early access version of “Path of Exile 2” in South Korea on December 7. Next year, new games such as “Lost Eidolons: Veil of the Witch” and “Valhalla Survival” will be launched, as well as a baseball simulation based on non-fungible token (NFT) technology. game.

In addition, the highly anticipated MMORPG masterpieces “Project Q” and “Chrono Odyssey” are expected to be released in the third and fourth quarters of next year, while “ArcheAge Chronicles” is planned to be released in 2026 Released in year.

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