Microsoft and Epic Games leave Korea Association of Game Industry amid workforce cuts

Microsoft (MS), which operates the global gaming platform “Xbox,” and Epic Games, which operates the “Epic Games Store,” have left the Korea Association of Game Industry through their Korean branches.

According to the gaming industry on the 4th, MS and Epic Games have voluntarily withdrawn from the Korea Association of Game Industry. They were also excluded from the list of member companies published on the website.

Korea MS became a board member of the Korea Association of Game Industry in 2023. This decision garnered attention at the time as MS headquarters was undergoing mergers and acquisitions (M&A) procedures in the Korean market with Blizzard, meaning they left the association again after about two years.

Epic Games Korea has participated in the Korea Association of Game Industry as a regular member for a long time. In 2018, it served as the main sponsor of the G-STAR, the largest game show in Korea, hosted by the association, promoting "Fortnite."

Some believe that the departure of the two foreign gaming companies is related to the trend of workforce reductions in the global gaming industry, which accelerated after 2023. Earlier, Epic Games laid off 830 employees, accounting for 16% of its total workforce in 2023. Blizzard Entertainment, a subsidiary of MS, and Riot Games, which services League of Legends (LoL) and Valorant, also reduced staff at their Korea branch after undergoing a major restructuring at the headquarters level last year.