Latest news with #WiJong-hyun
Korea Herald
23-04-2025
- Entertainment
- Korea Herald
Is Microsoft overlooking Korean gamers?
Game industry expert says Korean gaming market has lost appeal with rise of competitors such as China Microsoft's decision not to release its latest title in South Korea has reignited criticism over its neglect of Korean gamers -- and game industry experts say such a move reflects Korea's declining standing in the global gaming industry. Bethesda Softworks, a US-based game publisher under Microsoft, released The Elder Scrolls IV: Oblivion Remastered at midnight Wednesday (Korean time), marking the return of the 2006 role-playing game classic. The Elder Scrolls IV: Oblivion Remastered launched globally via digital storefronts of Windows, PlayStation 5, and Xbox Series X and S. The remastered game features a visual overhaul of the original game using Unreal Engine 5, expanded gaming territories, as well as newly added dialogues, visual and audio effects. Notably absent in the global launch is South Korea, with the country being one of the only two countries where the game is not available for purchase on Steam, alongside Russia. On Steam, the game is available for purchase in 41 countries. The omission has reignited longstanding criticism of Microsoft's localization strategy and its perceived neglect of the Korean gaming community. The Outer Worlds 2, another upcoming Microsoft title, is reportedly not planning to include Korean language support at launch, echoing the nationwide controversy that surrounded the release of Starfield in 2023. Microsoft's decision to exclude a Korean language option in Starfield had sparked public outcry, including protests, boycotts and online petitions from Korean gamers demanding language support for the game. In January, frustration also mounted over Microsoft's promotion of Diablo 1 Remastered, a Blizzard title added to Game Pass. Although the game was marketed in Korea, it was never released in the local market, prompting accusations of false advertising. Industry analysts say the company's diminishing focus on Korea reflects broader shifts in the global gaming landscape. 'The Korean gaming market has lost much of its appeal (as a consumer) due to the rise of competitors such as China,' said Wi Jong-hyun, president of the Korea Game Society. According to him, Korea was once a strong consumer as well as a potential partner, with leading game IPs in mobile and RPG gaming sectors. However, he said China has stepped in to overtake Korea, with its gaming industry experiencing strong growth. 'From Microsoft's perspective, the priority is console sales, but Xbox remains a hard sell in Korea,' Wi added. 'As for the recent 'Elder Scrolls' situation, there may have been technical or localization issues for the company to leave out only Korea and Russia. But in the past, such factors wouldn't have stopped publishers from prioritizing Korea. Today, the incentive just isn't there.'
Korea Herald
22-04-2025
- Business
- Korea Herald
Kakao at crossroads: AI pivot fuels calls to shed noncore units
Entertainment and mobility units under scrutiny, while financial arms face limited impact South Korean IT giant Kakao is once again at the center of deal speculation, as rumors of subsidiary sales continue to swirl despite the company's repeated denials. Just days after Kakao dismissed reports that it planned to offload its entertainment arm, Kakao Entertainment, new chatter emerged Thursday suggesting its taxi-hailing platform, Kakao Mobility Corp., may also be up for sale. Kakao Mobility quickly pushed back. A company executive reportedly told employees Kakao has 'no plans to sell its management rights' in the unit, stating, "While discussions have taken place among shareholders and investors over the replacement of financial backers, no decisions have been finalized." The speculation coincides with a sweeping overhaul at Kakao, led by CEO Chung Shin-a, who has pledged to consolidate resources around artificial intelligence, positioning AI as the company's next growth engine. Since the revamp began, talk of offloading noncore subsidiaries has intensified, with many viewing major divestments as inevitable. The biggest jolt came earlier this month, when local reports said Kakao Entertainment — a heavyweight subsidiary estimated to be worth 10 trillion won ($7 billion) — could be up for sale. Kakao denied, responding that 'all strategic options remain on the table." But the vague wording, coupled with the unit's continued net losses, only fueled expectations that a deal may be imminent. Kakao Mobility is also reportedly in talks to replace its financial investors. Seoul-based private equity firm VIG Partners is said to be negotiating to acquire a combined stake exceeding 40 percent, and some market watchers believe VIG may eventually seek part of Kakao's 57 percent holding for potential ownership takeover. Despite its public denials of any formal restructuring, Kakao's actions tell a different story. Over the past two years, Kakao has trimmed its subsidiary count by more than 30. The company has also confirmed plans to sell Kakao VX, a golf-tech unit under Kakao Games, by year-end, while its labor union also claims the company is preparing to offload Kakao Healthcare soon. The overhaul is also a response to years of criticism over Kakao's unchecked expansion. What began in 2010 as a messenger app has morphed into a sprawling and loosely governed tech empire, with key units like Kakao Games, Kakao Bank and Kakao Pay listed independently from the parent — prompting backlash over governance and accountability. 'Kakao is at a pivotal moment,' said Wi Jong-hyun, a professor of business management at Chung-Ang University. 'It needs to define what to keep and what to let go, focusing its energy on areas that align with its core identity, KakaoTalk, and its growth prospects.' While Kakao Entertainment holds promise in content, Wi said its inability to pursue a market listing — an important consideration for corporate strategy — dealt a decisive blow. The entertainment arm has attempted an initial public offering since 2019, supported by aggressive acquisitions. While these deals fueled rapid expansion, they also came with significant financial and reputational costs. Its purchase of K-pop giant SM Entertainment sparked a major governance scandal, with key executives, including Kakao founder Kim Beom-su, facing legal scrutiny for alleged stock manipulation during the takeover. "With the market debut now gone up in smoke, the best option for Kakao is to sell the entertainment subsidiary, quickly distancing itself from the crisis, securing meaningful capital, and streamlining its portfolio," noted Wi. Sales of the mobility unit are also crucial for Kakao's next chapter, he added. 'Kakao Mobility has come to symbolize the company's reputation as a power-tripping conglomerate encroaching on small businesses, which is why Kakao has been trying to offload the unit for years.' Wi, a longtime critic of Kakao's sprawling business model, said Kakao Games should be next on the chopping block, citing its limited contribution to growth and weak connection with the company's core identity as a messenger. Regarding Kakao Pay — once rumored as a divestment target — Wi views it as a strategic asset. "The payments data it generates will be highly valuable, especially in light of Kakao's AI ambitions," he said. An industry official, speaking on condition of anonymity, also said the impact on Kakao Pay and fellow financial affiliate Kakao Bank is likely to be limited. 'Kakao Pay is a core business, tightly integrated with KakaoTalk and offering strong synergy potential,' the official said. 'Kakao Bank, meanwhile, operates with considerable autonomy from Kakao, its largest shareholder, as it is regulated under the Internet-Only Bank Act.' Despite the strategic value that subsidiary sales could bring, Kakao faces significant challenges, including strong resistance from its labor union, particularly as it considers sales to private equity firms. The union has consistently protested these sales, arguing that such moves would harm employee interests and undermine corporate value.
