SEOUL — Kakao Games Corp., a subsidiary of the South Korean internet conglomerate Kakao Corp., reported a swing to a net loss in the second quarter of this year, reversing the profit it had last year during the same period. The downturn is attributed to declining revenues from its mobile gaming sector and a lack of new game releases.
According to Yonhap News Agency, Kakao Games experienced a net loss of 11.7 billion won (US$8.5 million) for the April-June period, contrasting with a net profit of 8.7 billion won a year earlier. Its operating profit also saw a significant decrease of 89 percent to 2.8 billion won, and overall sales dropped 13.1 percent to 235.6 billion won. The company highlighted a 21.8 percent decline in mobile game revenues, which fell to 134.5 billion won, mainly due to the aging of its game portfolio and the absence of new titles that could rejuvenate its market presence.
However, there was a silver lining with a 4.8 percent increase in PC game sales, totaling 16.3 billion won, bolstered by a collaborative event with the popular game PUBG: Battlegrounds. Looking forward, Kakao Games has outlined plans to introduce new titles across various genres in the latter half of the year, including early access to the action RPG Path of Exile 2 and the real-time strategy game Stormgate. Additionally, the company is gearing up to launch major titles like Chrono Odyssey and ArcheAge 2 by 2026.