Korean game companies are facing a crisis as they surrender the domestic mobile game market to foreign games. Foreign games are occupying the top positions in the domestic application (app) revenue list, surpassing domestic games. In particular, the rise of Chinese game companies is remarkable, amidst analyses indicating that users are experiencing fatigue from the domestic games, which are predominantly massively multiplayer online role-playing games (MMORPG).
◇ More than half foreign games… Most are from Chinese game companies
According to mobile index, an app statistics analysis platform, as of the 26th, six out of the top 10 revenue games on Google Play were foreign games. The top revenue was held by 'Last War: Survival,' created by the Chinese company First Funny. Other entries included ▲4th 'WOS: Whiteout Survival' ▲5th 'Zenless Zone Zero' ▲6th 'Royal Match' ▲7th 'Roblox' ▲10th 'Capybara GO.'
The situation was even more pronounced on the Apple App Store, where eight out of the top 10 revenue games were foreign games. The top revenue on the App Store was also 'Last War: Survival.' Following it were ▲2nd 'WOS: Whiteout Survival' ▲4th 'Pokémon Trading Card Game Pocket' ▲5th 'Capybara GO' ▲6th 'Honkai: Star Rail' ▲8th 'Roblox' ▲9th 'Brawl Stars' ▲10th 'Royal Match.'
Recently, the rise of Chinese games has been prominent in the domestic mobile game market. On Google Play, three out of the top six revenue games are Chinese, while four out of the top eight on the App Store are Chinese. 'Last War: Survival' has surpassed NCSoft's 'Lineage M' this year, maintaining the number one revenue ranking in both markets. The game's revenue in Korea from January to October this year reached $250 million (350 billion won), up 33 times from the previous year, accounting for 21.4% of the total revenue generated worldwide.
◇ New release gap and preference for non-MMORPG foreign games
The reasons foreign games have come to dominate the domestic mobile game market are complex. First, foreign games are launching offensives to exploit the declining popularity of existing domestic games and the gap created by the absence of blockbuster releases. Among the domestic games launched this year, very few have established themselves in the market's upper tiers, and the structure makes it difficult for new domestic blockbusters to emerge each month due to development timelines, resulting in a new release gap. However, industry consensus suggests that the gap has elongated as previously anticipated titles have failed to deliver significant results.
Additionally, there are analyses indicating that user fatigue has increased from the domestic games, which are predominantly MMORPGs. A common feature of the foreign games that have made it to the top ranks is that they belong to non-MMORPG genres. They include casual games, idle role-playing games (RPGs), collectible action RPGs, and strategy simulations. The domestic MMORPG genre has accelerated gamers' fatigue due to similar growth structures, uniform user interfaces (UI) and user experiences (UX), excessive monetization, and competitive prompts. Recent controversies over probabilistic item operations have also been pointed out as reasons turning gamers away.
Interest in domestic games is declining due to a generational shift among gamers. Unlike past generations where MMORPGs were mainstream, the 10-20 age group prefers games that require relatively less time and money. Those enjoying short-form videos on platforms like Instagram Reels or TikTok favor games with shorter playtimes, and foreign games have successfully tapped into that demand.
Kim Jeong-tae, a professor at Dongyang University, noted, "The 10-20 age group, which is accustomed to short-form content, lacks the time to sit down and play MMORPGs, leading them to seek casual games or snack games." He added, "Moreover, the controversy over probabilistic item operations that started in March has transformed users' suspicion about game operations into distrust, resulting in lower loyalty toward domestic games."