[Edaily Reporter An Yu-ri ] Amid assessments that the prestige of “G-Star,” Korea’s largest game exhibition, has waned, the Japanese game exhibition “Tokyo Game Show (TGS)” is emerging as a battleground for Korean game companies. Following last year’s trend, a large number of “subculture” games with a Japanese anime style are expected to be showcased again this year.

According to industry sources on the 7th, the number of Korean game companies participating in TGS—which stood at around 30 in 2024—surpassed 40 last year. This year’s figure is expected to exceed last year’s level. The “3N”—Nexon, Netmarble Corporation(251270), and NC (NCsoftCorporation(036570))—along with Smilegate and a host of small, medium, and indie game companies, are heading to Tokyo in large numbers.

◇Rising Popularity of Subculture Games → Importance of the Japanese Market

The reasons Korean game companies are flocking to Japan include a larger market size than Korea’s and geographical advantages. According to the Korea Creative Content Agency, the Japanese game market was worth approximately $22 billion in 2024, accounting for 10% of the global market—higher than Korea’s global market share (7.2%). Other strengths include its proximity to Korea and the even distribution of console, mobile, and PC users.

As the global subculture game market expands, the importance of the Japanese market has grown even further. Japan is, in effect, the birthplace of subculture. This means that if a game gains recognition from Japanese users, it is likely to attract attention from subculture fans in other countries, including Korea.

This year, the titles submitted by Korean game companies have seen even greater segmentation in their target audiences and gameplay styles, even within the subculture category. Genres have diversified beyond role-playing games (RPGs) that involve collecting and raising cute female characters to include interactive games where players spend daily life with characters, narrative-driven collection-based RPGs, strategic turn-based combat, and roguelike action games.

Nexon’s “Paraydolia” highlights daily life content centered on living alongside characters. Netmarble Corporation’s “Pearl in Blue” focuses on a story where players build relationships with girls. “Shangri-La Frontier: The Seven Strongest Species” features two-player swap combat, while Smilegate’s “Dead Account: Two Blue Flames” highlights roguelike action. NC’s “Astrae Oratio” sets itself apart with a historical setting in a fictional Tokyo of 1889 and a world of divine machines.

◇Expanding Collaboration with Japanese IP

There is also a growing trend of developing games using local Japanese intellectual property (IP). Notable examples include #Com2uS Corporation’s “Doyonamgwi: Crimson Inferno” and “Gachiaquta: The Game,” Wemade Co., Ltd.’s “Hundred Note,” and Big Game Studio’s “Condemned by the Hero.”

Collaborations with Japanese IP typically take the form of partnerships with production committees. A production committee is a representative Japanese content investment model in which publishers, broadcasters, advertising agencies, and merchandise distributors jointly invest in production costs. During the game development process, the project must undergo meticulous review by local stakeholders to meet the expectations of existing IP fans.

An official at the Japanese branch of a Korean game company, who requested anonymity, said, “It’s no exaggeration to say that the IP holder points out issues character by character,” adding, “However, once you pass this rigorous review, the likelihood of meeting the expectations of the existing fan base increases significantly.”

◇The Growing Tokyo Game Show, G-Star’s Diminishing Presence

While the Tokyo Game Show has expanded by riding the wave of the subculture boom, the presence of G-Star, South Korea’s leading game exhibition, has relatively diminished. As of the 7th, the only major Korean game companies that have confirmed their participation in this year’s G-Star are Webzen Inc. and KRAFTON. The “3N” companies—which are heading to this year’s TGS—have not yet confirmed their participation in G-Star.

A gaming industry official stated, “Game companies have become much more selective about which exhibitions to attend, based on the target market and release schedule of their new titles,” adding, “For games that utilize Japanese IP or target subculture audiences, TGS is one of the most effective stages for testing global reactions.”

TGS 2026 will be held from the 17th to the 21st at Makuhari Messe in Chiba Prefecture, Japan. For the first time this year, the event duration has been extended from four days to five. The business-to-business (B2B) sessions will take place on the 17th and 18th, while the public sessions will run from the 19th to the 21st.

Despite the absence of a large number of Chinese game companies due to deteriorating Sino-Japanese relations, the number of participating countries has increased to 51 based on preliminary figures, up from last year. The preliminary list released by the Computer Entertainment Suppliers Association of Japan (CESA) includes 38 participating entities from South Korea, including companies and institutions. When factoring in participation in joint pavilions operated by the Korea Creative Content Agency and local governments, the actual number of South Korean participants is expected to be even higher.