Kakao Games posted a loss again in the third quarter this year. Sluggish results for "Goddess Order" and a decline in mobile revenue dragged down earnings, but the company plans to rebound with 11 new titles next year. It has secured about 150 billion won in cash through the recent sale of noncore subsidiaries and a large rights offering, wrapping up a transformation to focus on its core "games" business.
Kakao Games said on the 5th that under Korean International Financial Reporting Standards (K-IFRS) on a consolidation basis, it posted third-quarter 2025 revenue of 127.5 billion won and an operating loss of 5.4 billion won. Revenue fell 22% from the same period a year earlier (162.8 billion won), and operating profit swung to a loss from 7.7 billion won. The net loss widened to 33.6 billion won. However, it improved 37% from the previous quarter (operating loss of 8.6 billion won).
By platform, the PC online institutional sector recorded 42.7 billion won, up 25% year over year. A major update for "Path of Exile 2" and a "Battlegrounds" collaboration drove traffic. In contrast, mobile revenue fell 34% to 84.8 billion won. The Korea version of "Odin: Valhalla Rising" held steady thanks to a 4th-anniversary update, but a slowdown in global revenue and the stabilization at a lower level of "ArcheAge War" affected results.
"Goddess Order," the only anticipated title for the second half of the year, is expected to weigh on the fourth quarter after updates were halted about a month after launch. With new content supply suspended due to PixelTribe's management difficulties, Kakao Games is blocking in-app purchases and processing refunds.
Kakao Games aims for a rebound by sequentially launching 11 new titles starting next year. Vice President Han Sang-woo of Kakao Games said during a conference call after the third-quarter earnings release that day, "We have a variety of new titles in the pipeline, including the four key games—mobile 'Project Q' and 'Project OQ,' and PC and console 'Chrono Odyssey' and 'ArcheAge Chronicle.'" He added, "We plan to launch according to schedule, taking into account overall development completeness and market timing," and "All major projects are currently proceeding smoothly according to their planned stages."
"Chrono Odyssey" is in the polishing stage to reinforce its combat system and narrative after the recent CBT (closed beta test). The company will share the improvement status with the community within the year and conduct internal tests with core users early next year. XLGAMES' next title, "ArcheAge Chronicle," has undergone seven to eight internal tests, and a global user test involving about 100 users from Western markets is scheduled for December. "Project Q" and "Project OQ" are being developed to add differentiated combat systems to MMORPG's inherent competitive elements such as faction warfare.
Han said, "It will not be easy to improve profitability in the first half of next year due to a lack of new releases, but the impact of new titles will begin in earnest in the second half," adding, "We are focusing on completeness and securing global competitiveness rather than short-term performance."
The company also streamlined its financial structure. Kakao Games sold Kakao VX in Oct. for 210 billion won and raised 108.5 billion won through a third-party allotment rights offering, securing a total of 156.2 billion won in cash. The funds will be used to enhance financial stability through development of major new titles, acquisition of new IP (intellectual property), and debt repayment. Of the 11 titles to be unveiled next year, eight are self-owned IPs under development at subsidiaries. They include Ocean Drive Studio's open-world survival simulator "God Save Birmingham," LIONHEART STUDIO's MMORPG "Project Q," the subculture collection RPG "Project C," and XLGAMES' new title "The Cube: Save Us."
It is also pursuing IP diversification in the mobile institutional sector. "SM Game Station" (working title), under development by subsidiary Metabora, is a casual game using SM Entertainment artist IP, targeting a global fan base. In addition, various titles across genres are set to be unveiled next year, such as the strategy RPG "Dungeon Arise" (working title), developed in collaboration with Tinyfun Games. A Kakao Games official said, "As we have built a structure that enables us to focus our capabilities on our core business, games, we will successfully land next year's lineup based on our global service experience."