[Edaily Reporter An Yu-ri ] Kakao Games Corp.(293490), which had posted losses for seven consecutive quarters, has found a glimmer of hope for a turnaround in its performance, thanks to the success of a new game. "The World of Goblins," released on the 8th, climbed to the top spot in Google Play sales on the 13th—just five days after its launch.

According to Mobile Index on the 14th, the massively multiplayer online role-playing game (MMORPG) “The World of Goblins,” published by Kakao Games Corp. and developed by Supercat, reached No. 1 on the Google Play revenue chart on the 13th. This was just five days after its official launch on the 8th. As of today, the game continues to hold the No. 1 spot on the Google Play revenue chart.

“The World of Goblins” had been drawing user interest even before its launch. When pre-downloads began on the 7th, it ranked No. 1 on the Apple App Store’s popularity chart, and on the day of its official launch, it climbed to No. 1 on Google Play’s popularity chart. After settling into the No. 2 spot on the revenue charts of both major app stores, it went on to claim the top spot on Google Play’s revenue chart.

This success is particularly significant given that Kakao Games Corp. has been struggling with poor performance for some time. In the second quarter of this year, Kakao Games Corp. reported consolidated revenue of 75 billion won and an operating loss of 23 billion won. Revenue fell 35.2% year-over-year, and the operating loss widened from 8.6 billion won in the same period last year. This marks seven consecutive quarters of losses since the fourth quarter of 2024. The decline in revenue from existing games, coupled with a lack of new releases, contributed to this trend. In particular, mobile game revenue in the second quarter of this year fell 47.8% year-over-year to 52.7 billion won.

However, it remains to be seen whether the initial success of *The World of Goblins* will immediately translate into a significant improvement in operating profit. This is because the game was developed by an external studio, Supercat, and is based on the Naver web novel and webtoon *The Demon-Slaying Chronicles*, meaning the original IP was also secured from an external source. Considering revenue sharing with the external developer and costs associated with using the original IP, the impact on profitability may be more limited compared to in-house developed titles.

With competition intensifying in the second half of this year due to the successive launches of new MMORPGs by competitors, the key question is whether the game’s initial success can be sustained into long-term revenue.

“Odin Q: Valkyrie’s Call,” scheduled for release in January of next year, is seen as the upcoming title that will determine whether the company can achieve a full-fledged turnaround in its financial performance. Odin Q is an MMORPG currently under development by Lionheart Studio, a subsidiary of DIO Corporation. As a sequel that builds on the IP of the company’s flagship title, “Odin: Valhalla Rising,” it features a world based on Norse mythology and graphics powered by Unreal Engine 5.

“God Save Birmingham,” an open-world zombie survival game currently in development by subsidiary Ocean Drive Studio, is also set for an early access release in the first quarter of next year.

“The World of Goblins” is also significant as it is the first major new title unveiled since Kakao Games Corp.’s largest shareholder changed to Line Yahoo last June and the co-CEO system led by Kim Tae-hwan and Lee Si-woo was launched. Under the new management structure, Kakao Games Corp. is pursuing a strategy of “selection and focus.”

The puzzle game “SMiniz,” launched in partnership with SM Entertainment, will end service on November 25—just nine months after its release. “ArcheAge Chronicles,” a new title originally scheduled for release in the fourth quarter and set to be published by Kakao Games Corp., will now be operated directly by its subsidiary, XL Games.

On the other hand, the company is actively investing in sectors it deems promising. It appears to be utilizing the 300 billion won in new investment funds secured through the acquisition of Line Yahoo for aggressive M&A activities. Kakao Games Corp. recently made a strategic investment in BackendX, an AI-based backend development and operations company, while also acquiring a 39.56% stake in casual game developer Me2on Co., Ltd., becoming its largest shareholder.

A Kakao Games Corp. spokesperson stated, “As announced during our second-quarter earnings call, we have decided that XL Games will handle the self-publishing of ‘ArcheAge Chronicles.’ We plan to launch the strategic adventure RPG ‘Dungeon Arise’ in the fourth quarter as scheduled, and our in-house titles ‘Odin Q: Valkyrie’s Call’ and ‘God Save Birmingham’ are set to launch in the first quarter of next year.”