Kakao Games reports 6.3 billion won loss in Q4, plans new game lineup for recovery

Kakao Games announced its fourth-quarter and annual results for 2024 on the 11th.

In the fourth quarter of 2024, Kakao Games recorded approximately 160.1 billion won in revenue and an operating loss of about 6.3 billion won, a decrease of 21% and a shift to a loss, respectively, compared to the previous year. On an annual basis, revenue was approximately 738.8 billion won and operating profit was about 6.5 billion won, down 14% and 92% respectively from the previous year.

The company is implementing a strategy of choice and concentration, downsizing unprofitable businesses, and streamlining management while preparing for the development of large-scale games for PC online and console platforms. The impact on performance also came as a result of the exclusion of consolidation due to the sale of part of its equity in Senate Technology since last year and the withdrawal of some businesses from Kakao VX.

Factors contributing to the deterioration of fourth-quarter performance include the absence of new titles, natural decline of existing titles, and the deferred accounting treatment of "Path of Exile 2." However, the company noted that its flagship live games maintain stable services and continue to achieve solid results.

Kakao Games aims for a rebound in performance through various new releases in 2024. This includes major new titles such as the PC online and console cross-platform open-world action RPG "Chrono Odyssey," the action roguelite shooter "Section 13," as well as a variety of indie games. In particular, "Chrono Odyssey" is set to conduct a global test in the first half of the year, and tests for "ArcheAge Chronicles" are also planned for the second half.

It will also challenge various genres on mobile. Upcoming releases include the AAA-level "Project Q," the 2D pixel graphic side-scrolling action RPG "Guardians Order," the subculture cultivation simulation "Project C," a "baseball simulation game (working title)" utilizing global IP, and a casual game titled "SM Game Station (working title)" utilizing SM idol IP, which will be launched in domestic and global markets.

Han Sang-woo, CEO of Kakao Games, stated, "We will sequentially reveal large-scale titles based on a multi-platform foundation to enhance competitiveness,” adding, “Based on the service know-how we have accumulated so far, we will strengthen our efforts to target the global market.”