Kakao Games did not have the best quarter, and the “why” is complicated.
According to the Korean games giant’s Q4 2024 financials, its PC segment was the only games segment to actually see a bump in revenues compared to Q4 2024 (though its comparison to a very spiky Q3 isn’t great). The problem is the mobile segment, which saw a 30% decline in revenues compared to Q4 2023. Unfortunately, this is a problem across the entire gaming industry, and we’ve seen it over the last year from companies like NCsoft and Square-Enix too. In the report, Kakao chalked it the mobile decline to an “absence of new titles and [the] natural decline of legacy titles etc.”
As for the company’s MMOs, the execs say they are still on track for a Q4 2025 launch for Chrono Odyssey (same as the plan last quarter). Beta is planned by summer; as we noted last month, the company has already been talking up early access.
ArcheAge Chronicles, the slimmed-down console-friendly MMO once known as ArcheAge 2, has been delayed so many times we’ve lost count, but as of right now it’s still targeting 2026, though the latest list shows it’s firmed up slightly to the first half of the year now.
Also worth noting is that Kakao is looking forward to Path of Exile 2 as a future revenue source that hasn’t been recognized yet (Kakao is publishing it in Korea). POE2 came up again during the call when an investor rep basically asked how Kakao plans to solve the problem of MMOs and online games eventually losing players and revenue over time (the billion-dollar question right?); Kakao says POE2 represents a “snowballing model” that builds on the IP and loyal playerbase to expand with DLC and sequels and live service revenue.
Execs on the investor call also said Kakao is trying to expand globally with a tailored strategy by region, focusing on the PC and console-driven market in North America and Europe. On the mobile side, the company is focused on games that perform well in the west (as they also perform well in Asia). Kakao has not been as focused on China given the state of regulation and opportunity, though the company is planning to be more aggressive about that in 2025. Likewise, Kakao argues that the Japanese gaming market requires extra depth and cultural sensitivity to succeed.
