A new study predicts that the South Korean games market will surpass $2 billion in 2007, thanks to the burgeoning online and mobile market.
A study abstract from San Francisco-based Pearl Research reveals that 79 percent of all South Korean households own a computer, and 12 million out of 15 million households utilize broadband. Over 20,000 Internet cafes exist in the country, further reflecting its strong IT culture.
Pearl forecasts that the online PC games market will be valued at over $1.2 billion this year, driven by casual, easily accessible games that can be played in less than 10 minutes. The research firm says that over 30 percent of the online games market is made up of casual games, which attract females over 30.
As for the console and handheld market, Pearl believes that online gameplay, “culturally relevant and localized software,” increased market investment and next generation consoles will drive the growth of the $160 million segment.
As with many other regions, mobile gaming is on the upswing in South Korea, where the market is expected to exceed $275 million this year. Advancements in technologies, marketing and 3D games are likely market drivers.
According to Pearl, some likely inhibitors of growth include an influx of derivative titles, piracy and rising development costs.
South Korea is home to some notable game companies, including NCsoft and Phantagram, with heavy-hitters Nintendo and Activision recently setting up shop in the region.
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