2019 South Korean Game White Paper: 880 local game companies The fourth largest mobile game market in the world
Looking at the overall situation, in 2018, the domestic game market in South Korea reached 14,290.2 billion won (approximately 12.34 billion U.S. dollars), an increase of 8.7% compared with 2017 (13,142.3 billion won, approximately 11.35 billion U.S. dollars). South Korea's game industry continued to grow during the ten years from 2009 to 2018. Although it declined slightly in 2013 (a decrease of 0.3% year-on-year), it resumed growth in 2014 and maintained its growth momentum until 2018. The Korean mobile game market surpassed PC games for the first time in 2017, and it also occupied a dominant position in the Korean game industry in 2018. In 2018, the sales revenue of the mobile game market reached 6,655.8 billion won (approximately 5.75 billion U.S. dollars), accounting for 46.6% of the total game industry sales revenue. The sales revenue of PC games was 50236 billion won (approximately 4.34 billion U.S. dollars), accounting for 35.1% of the total game industry sales revenue. The sales revenue of Internet cafes was 1,828.3 billion won (approximately 1.58 billion U.S. dollars), accounting for 12.8% of the total game industry sales revenue. The sales revenue of console games was 528.5 billion won (approximately 456 million U.S. dollars), which accounted for the proportion of the total game industry sales revenue from 2.8% in 2017 to 3.7%. In 2018, the sales revenue of the Korean game industry only saw a year-on-year decrease of 12% in the sales of arcade games, while other sales revenues increased year-on-year. However, the growth rate has decreased compared with 2017. In terms of growth rate, only console game sales revenue has maintained a high growth rate for two consecutive years, and the growth rate reached 41.5% in 2018. The growth rate of PC games was 10.6%, the growth rate of mobile games was 7.2%, and the growth rate of arcade games and Internet cafes remained around 3%. In 2018, the export value of the Korean game industry increased by 8.2% year-on-year to reach 6.411 billion US dollars. Imports also increased by 16.3% year-on-year, reaching US$306 million. 1. Game industry trends in 2018 In 2018, the Korean game market grew by 8.7% year-on-year, reaching 14,290.2 billion won In 2018, the domestic game market in South Korea reached 14,290.2 billion won (approximately 12.34 billion U.S. dollars), an increase of 8.7% compared to 2017. South Korea's game industry has maintained a growth trend as a whole, with only a slight decline in 2013, but has maintained its growth momentum after resuming growth in 2014. However, the year-on-year growth rate in 2018 was significantly slower than in 2017.
The scale of the mobile game market reached 6,655.8 billion won, accounting for 46.6% of the total game market In 2017, South Korea's mobile game market surpassed the PC game market for the first time, and the focus of the Korean game industry has shifted to mobile games. In 2018, the scale of the mobile game market continued to account for the largest proportion of the overall game industry. In 2018, the sales revenue of the mobile game market reached 6,655.8 billion won (approximately 5.75 billion U.S. dollars), with a market share of 46.6%, a slight decrease from 2017 (47.3%). The sales revenue of the PC game market was 50236 billion won, with a market share of 35.1%, a slight increase from 2017 (34.6%). The sales revenue of the console game market was 528.5 billion won, with a market share of 3.7%, and both sales revenue and market share increased significantly year-on-year. In the overall game industry, only arcade game halls saw a year-on-year decrease of 12% in sales revenue, while other sales revenues increased year-on-year. According to statistics, in 2018, the share of arcade games was 1.3%, that of Internet cafes was 12.8%, and that of arcade game halls was 0.5%.
Compared with 2017, the growth rate in 2018 has generally slowed down. However, the sales revenue of the console game market increased by 41.5% year-on-year, continuing to maintain a substantial growth momentum. The sales revenue of the PC game market also increased by 10.6% year-on-year, showing a substantial increase. The sales revenue of the mobile game market increased by 7.2% year-on-year, the sales revenue of the arcade game market increased by 3.1% year-on-year, and the sales revenue of Internet cafes increased by 3.9% year-on-year. In 2018, exports increased by 8.2% year-on-year to US$6.411 billion In 2018, the export value of the Korean game industry increased by 8.2% year-on-year to reach 6.411 billion US dollars. Imports also increased 16.3% year-on-year, reaching US$306 million.
From the perspective of various game platforms, the export scale of PC games reached US$3.42 billion, accounting for the largest proportion. The export scale of mobile games was 2.876 billion US dollars, the export scale of console games was 80.93 million US dollars, and the export scale of arcade games was 33.58 million US dollars. From the perspective of import scale, the import scale of PC games in 2018 was 57.18 million US dollars. The import scale of mobile games was US$107 million, and the import scale of console games was US$139 million. The import value of these two platforms has increased on a large scale. The import scale of mobile games has increased by USD 13.44 million year-on-year, and the import scale of console games has increased by USD 40.16 million year-on-year. The import scale of arcade games is USD 2.31 million.
In 2018, among the major exporting countries and regions of Korean games, "Greater China" (Mainland China, Hong Kong, and Taiwan, China merged into the "Greater China") accounted for the largest proportion with a rate of 46.5%. Followed by "North America" (15.9%), "Japan" (14.2%), "Southeast Asia" (10.3%), and "Europe" (6.5%). Compared with 2017, exports to Greater China and Southeast Asia decreased, while exports to other regions increased. The proportion of exports to Greater China fell by 14.0% year-on-year, and the proportion of exports to Southeast Asia fell by 2.3% year-on-year. On the contrary, the proportion of exports to North America increased by 9.3% year-on-year, showing a substantial increase. In addition, the proportion of exports to Japan increased by 2.2% year-on-year, the proportion of exports to Europe increased by 2.7% year-on-year, and the proportion of exports to other regions increased by 2.2% year-on-year.
When looking at the proportions of exporting countries and regions by game platform, among the exporting regions of PC games in 2018, "Greater China" accounted for the largest proportion with a ratio of 54.5%. Then, in order, “Japan” (14.7%), “North America” (13.2%), “Europe” (6.4%), and “Southeast Asia” (5.3%). The proportion of exports to “Greater China” and “Southeast Asia” decreased by 20.3% and 1.4% year-on-year respectively, while the proportion of exports to “Japan”, “North America” and “Europe” increased by 10.1%, 6.3%, and 1.8% respectively. It can be seen that the decline in "Greater China" and the rise in "Japan" are very large. Among the export regions of mobile games, "Greater China" also accounts for the largest proportion with a ratio of 38.5%. Next, they are "North America" (18.4%), "Southeast Asia" (16.4%), "Japan" (13.2%), and "Europe" (5.9%). Compared with 2017, the proportion of exports to “Greater China”, “Japan” and “Southeast Asia” decreased by 5.8%, 8.2% and 0.7% respectively. On the contrary, the proportion of exports to “North America” and “Europe” increased by 11.7% and 1.4% respectively. South Korea accounts for 6.3% of the global game market, ranking fourth in the world in the mobile game market In 2018, South Korea accounted for 6.3% of the global game market, ranking fourth in the world following the United States, China, and Japan. The countries from fifth to tenth are the United Kingdom, Germany, France, Italy, Canada, and Spain. In the PC gaming sector, South Korea ranks second in the world with 13.9% share, second only to China. South Korea has been ranked second in the world in the PC gaming sector until 2016, but was surpassed by the United States in 2017. In 2018, South Korea surpassed the United States again to rise to second place by a very small gap. In 2018, South Korea ranked fourth in the world with a 9.5% share in the global mobile game market, followed by China, Japan, and the United States, but its share is similar to that of China (26.5%), Japan (16.5%), and the United States (14.9%). Big gap. Compared with 2017, China's share in the global mobile game market has increased by 5.8%, consolidating its number one position. Japan's share increased by 0.1%, while the US share decreased by 0.7%. In the console game sector, South Korea's share of the global market is very small. However, the size of the market has been increasing in recent years, and its share of the global market reached 1% in 2018.
880 producers and publishers, 11801 Internet cafes, 676 arcade game halls, and a total of 85,492 employees As of 2018, there are 880 game producers and publishers in South Korea. It is estimated that there are 11,801 Internet cafes and 676 arcade game halls in the game circulation industry. In 2018, there were 85,492 people engaged in the game industry, an increase of 4.3% over 2017 (81932). The number of employees in the game production and development industry is 37,035, accounting for 43.3% of the total number of employees in the game industry. The number of employees in the game circulation industry is 48,457, accounting for 56.7% of the total number of employees in the game industry. In 2018, the number of employees in the game production and publishing industry increased by 6.8% year-on-year to 37035. The number of employees in the game production and development industry has increased on all game platforms, and the number of employees in mobile games, console games, and arcade games has increased by more than 10% year-on-year. However, the number of PC game employees only increased by 0.4% year-on-year. The number of employees in the game circulation industry (Internet cafes, arcade game halls) increased by 2.5% year-on-year to 48,457. Among them, the number of employees in Internet cafes increased by 3.2%, but the number of employees in arcade game halls decreased by 15.1%.
In 2018, the global game market grew by 7.1% year-on-year In 2018, the global game market grew by 7.1% year-on-year to reach US$178.368 billion. All categories including PC, mobile, console, and arcade grew year-on-year. In particular, the mobile game market grew by 10.0% year-on-year, and the console game market grew by 8.5% year-on-year, driving the development of the entire game industry. Following 2017, mobile gaming platforms also accounted for the largest share of the global gaming market in 2018. The scale of the mobile game market reached 63.884 billion US dollars, accounting for 35.8% of the total game market. It is closely followed by console games with a market share of 27.5% and a market size of 45.968 billion US dollars. PC game sales revenue was 32.807 billion U.S. dollars, with a market share of 18.4%. The sales of arcade games are 32.709 billion US dollars, with a market share of 18.3%. It is expected that the sales of the global game market will continue to be concentrated in mobile games in the future, and the market share will reach 39.0% by 2021. Affected by this, the proportion of sales of PC, console games, and arcade games is expected to decrease from 2018. In terms of regions, it is expected that in 2021, the proportions of Asia and South America will increase compared to 2018, and the proportions of North America and Europe will decrease compared with 2018. However, the degree of change will not be too great. It is estimated that in 2021, the share of Asia will increase by 0.4% from 2018 to 21.5%; the share of South America will increase by 0.3% from 2018 to 2.2%; the share of North America will drop by 0.3% from 2018 to 22.3%; the share of Europe will be 22.3% In 2018, it decreased by 0.3% to 48.1%.
2. Game user characteristics Game user ratio According to a survey conducted with ordinary people aged 10 to 65 (n=3037), 65.7% of them have played games after June 2018. Among those who have played games (n=1995), the ones who have played "mobile games" (90.0%) are the most. Then, they are "PC game" (64.1%), "host game" (20.3%), and "arcade game" (11.9%). At the same time, 98.7% of those who have played games (n=1995) use the Internet in ordinary times. When game users go online for purposes other than work and study, the devices they use are "smart phones" (97.1%), "desktops" (66.9%), "notebooks and netbooks" (48.9%) and so on.
29.8% of people answered "yes" to the question "whether to go to Internet cafes more than once a week" for game users. On average, the rate of men going to Internet cafes more than once a week is higher than that of women, with the most people under 30 years old. Among users who went to Internet cafes more than once a week on average, users who answered that they mainly played games in Internet cafes (n=576) asked the reasons for playing games in Internet cafes. As a result, the answer "to get along well with friends or colleagues" (first place: 31.5%, first place + second place: 54.5%) was the highest. However, male users have the highest rate of answering "to get along well with friends or colleagues", while female users have the highest rate of answering "due to high computer configuration (performance)". User ratio of each gaming platform 1. PC games Among the survey respondents aged 10 to 65, the proportion of users who have recently played PC games (after June 2018) is 42.1%, which is 2.1% higher than the 2018 survey (40.0%). In terms of gender, the ratio of men is much higher than that of women; in terms of age, the ratio of users under 40 is relatively higher.
2. Mobile games Among the survey respondents, more than half (59.0%) have played mobile games recently, which is basically the same as the 2018 survey results (59.3%). In terms of gender, there is not much difference in the ratio of male and female users; in terms of age, the ratio of users under 40 is relatively higher than that of users over 40.
3. Console game The user ratio of console games is 13.3%. That is, among the survey respondents, one in ten is a console game user. This is an increase of 2.9% over 2018. In terms of gender, the ratio of male users is higher than that of female users; in terms of age, the ratio of users aged 20-29 and 30-39 is relatively higher than other age groups.
4. Arcade games Among the survey respondents, 7.8% answered that they have played arcade games recently, which is basically the same as the 2018 survey results (7.1%). In terms of gender, there is not much difference in the ratio of male and female users; in terms of age, the ratio of users under 40 is relatively higher than that of users over 40, especially those between 20 and 29.
5. Virtual reality games The proportion of users who have played virtual reality (VR) games is 5.8%, which is basically the same as the 2018 survey results (5.7%). In terms of gender, there is not much difference in the ratio of male and female users; in terms of age, the ratio of users between 20 and 49 is relatively higher than that of other age groups.
3. Expected South Korea in 2019 The size of the game market will continue to grow In 2019, the size of South Korea's game market is expected to grow by 5.1% compared with 2018, reaching 15,017.2 billion won (approximately 12.98 billion US dollars). Although all game platforms in the game production and distribution industry and the game circulation industry predict that the overall industry scale will grow, the growth rate will slow down. Judging from the situation at the time of the forecast, it is estimated that there will be no special expectation or change. However, due to changes in the market, these forecasts may change. In 2019, the size of the PC game market is expected to grow 3.4% over 2018, reaching 5,192.9 billion won. Although the status of PC games in the Korean game industry is far lower than before, judging from the popularity of PlayerUnknown's Battlegrounds or Lost Ark, as long as they can develop fun games, there are still many PC game users. However, the current PC game market is mainly dominated by a few well-known games. If these games experience user separation, the market size will shrink again. In particular, if there are no new popular games by 2021, when PlayerUnknown's Battlegrounds has been on the market for more than three years, the size of the PC game market is likely to return to a downward trend. In addition, Internet cafes are expected to increase and decrease in line with the development trend of PC games. The mobile game market is expected to continue its growth momentum, but the growth rate will be much lower than before. In 2019, the size of the mobile game market is expected to grow by 6.4% year-on-year, reaching 7072.4 billion won. The sales revenue of the popular "Lineage 2 Revolution" or "Lineage 2 Revolution" or "Lineage M" in the past is gradually turning into a decreasing trend. The game industry has reservations about whether there will be new popular games that can restore the aforementioned decreasing trend. The highly anticipated "Lineage 2M (Lineage 2M)" is also considered to be less influential than expected due to the overlap with the user layer of "Lineage 2: Oath" or "Lineage M" that shares IP. Taking these prospects into account, it is expected that the mobile game market will temporarily maintain single-digit growth.
Due to the console version of popular games such as Nintendo SWITCH and PlayerUnknown's Battlegrounds released in December 2017, the console game market has grown substantially in 2017 and 2018 for two consecutive years. However, there are no favorable factors comparable to it in 2019. First of all, Nintendo's SWITCH sales effect has almost disappeared. Therefore, it is predicted that the performance of the console game market from 2019 to 2020 will be mainly based on game sales performance. Excluding the sales of hardware equipment, the possibility of slow growth in the size of the console game market is high, but it may also shrink again. However, it is expected that the new generation of PlayStation will be launched in December 2020 and the new generation of Xbox will be available at the end of 2020. The sales performance of these devices will have a positive impact on the scale of the console game market in 2021. The scale of the arcade game market and the arcade game hall market is expected to fluctuate within a certain range in the future. At the same time, it is expected that arcade game halls will usher in new growth opportunities through integration with other facilities such as theaters and integrated shopping malls or becoming a family cultural space. On the other hand, it is expected that the number of closed and closed arcade game halls will also increase, and these factors will affect arcade games. Currently, many people agree that there is no killer content in arcade arcades. Although games or simulators using virtual reality have attracted people's attention, they have not yet fully settled in the market. In the future, the success or failure of arcade games and arcade game halls will depend on the development of these killer content. IV. 2018~2019 Major events in the Korean game industry in the first half of the year 1. Improve the control of games 2019 was a year of relaxation of regulations surrounding games. First, the Ministry of Culture, Sports and Tourism abolished the consumption quota for PC online games on June 27. The consumption limit for PC online games that cannot exceed KRW 500,000 per month based on adults is a representative control that has lasted for nearly 20 years. In particular, although the consumption limit of games is not clearly stipulated in the law, the game company must indicate the monthly consumption limit when accepting the game level review, which has become a substantive control. Because the mobile games that provide services on international platforms such as Google and Apple not only have no level division, but also no consumption limit. Therefore, South Korea's PC online game consumption limit is regarded as reverse discrimination and has been required to be improved. The Ministry of Culture, Sports and Tourism expressed its intention to make improvements and implemented improvements after Chief Park Liangyu took office. After improvements, the monthly spending limit for online board games such as Go-Stop (flower card game) and card games and youth accounts continue to remain unchanged, but adults are allowed to spend freely within the 10 million won limit. Game users can set the monthly limit by themselves, and can also change the limit twice a month. With the improvement, game companies such as NEXON, NC Soft, and SMILEGATE have raised the basic monthly consumption limit for PC online games to 1 million won. In addition, the use of credit cards to play arcade games has also been opened up. The Game Management Committee began to classify arcade games with no age restrictions and electronic payment functions such as credit cards from July 2019. Existing arcade games can only use coins and banknotes. This is a measure to prevent gambling behaviors and disguised business operations such as cashing in arcade games. Because of this restriction, it is difficult for owners to establish a flexible business model, and game users must carry cash to play games. While accepting the social atmosphere of the declining use of cash, this measure of the Game Management Committee gave more freedom to corporate activities. These two improvements are implemented at the level of ensuring the convenience and self-discipline of users, and in some parts, the level of economic development is also considered. The gaming industry welcomes this because of improved regulations that hinder industry development. At the same time, it is also hoped that other negative factors such as the "compulsory anti-addiction system" of PC online games or listing games as diseases can be improved. 2. The competitiveness of small and medium-sized game companies has weakened From 2018 to the first half of 2019, due to the lack of new large-scale games or the sluggishness of existing large-scale games, game development has shrunk, and the environment of core game companies has become more and more severe. Worries about the Korean game industry ecosystem The sound is getting louder. NEXON failed to actively launch new games due to issues related to the sale. NC Soft did not launch a new game after launching "Lineage M" and passed a strategic blank period. Although Netmarble has successively launched "Blade & Soul Revolution", "Seven Deadly Sins: Grand Cross", "BTS World" and other games since the end of 2018, it has been rated as a result Not as good as previous games. With the popularization of international mobile game platforms such as Google and Apple, competition has become increasingly fierce. This has become one of the reasons why the status of the backbone game companies has shrunk. Due to fierce competition, game companies are in a difficult position to launch successful games. And in order to succeed, more costs need to be invested, so the profitability becomes worse and worse. Large companies use efficiency as an excuse to reduce investment in the backbone or small and medium-sized game companies. Affected by this, small and medium-sized game companies lacking funds are unable to develop new games and gradually wither away. At the same time, there are more and more games that can replace content produced by Korean small and medium game companies. In other words, even if South Korea does not develop new games, it can still be filled with games developed by countries such as China. Moreover, there are many cases where the profitability of purchasing services provided by foreign games is better than developing games. Therefore, South Korean small and medium game companies have fewer and fewer opportunities to develop projects. With games such as virtual reality and augmented reality (AR) gaining attention from around 2017, the game industry expects these games to bring new development opportunities to the industry. However, these games are still in the position of "potential stocks" in 2018. Although large-scale virtual reality theme parks have appeared in several major business districts, the rate of repeat visitors is not high. Moreover, it is difficult to improve efficiency due to additional expenses for security personnel. In addition, there is a lack of killer content. Although several companies have tried to produce various virtual reality games such as shooting and thrillers, they have not yet launched content that can attract a large number of users. The popularity of head-mounted displays is slower than expected and also hinders the development of virtual reality games. Virtual reality game development companies need to actively explore overseas markets such as China or Southeast Asia. Many people think that the diversity of games is also decreasing. Large game companies believe that MMORPG can attract many users at the same time, allowing them to continue to play games, thereby earning income. Therefore, the focus is on the production of massively multiplayer online role-playing games. As a result, there are not many development plans for other types of games except MMORPG. Fortunately, in recent years, companies with international-level development capabilities such as PUBG and Pearl Abyss have emerged to promote the development of the game industry. Of course, for game companies run by individuals or a small number of people, these companies are also companies that survive with the support of large-scale funds. Therefore, it cannot be said to be a completely successful example or an example worth imitating. In order to solve the problem that the development of the Korean game industry is in a downturn, various attempts and efforts are required. 3. The success and significance of the game in the form of "Auto Chess" After "Auto Chess" was released in "DOTA2" mode on January 4, 2019, it attracted huge unexpected attention. "Auto Chess" is a game developed through so-called moding. Modular means that the game made by the developer is modified by the user or external developer as the original version. Moding (Module) is a word that renames nouns by adding mod after the word modification which means modification, change, etc. Therefore, the module can be understood as modifying or adjusting the logic, conditions, and methods of the game. After the release of "Auto Chess", the number of users increased rapidly with good reputation. As the popularity of "Auto Chess" has risen, interest in the original game "Dota 2" has also increased. In some surveys for the first quarter of 2019, the game time of Dota 2 even surpassed the most popular games such as League of Legends and PlayerUnknown's Battlegrounds. Although "Auto Chess" can be implemented in various forms, the most basic is a combination of defensive games that defend a certain area and a card game that uses decks to compete with each other. Moreover, the user's physical ability such as strategy plays a more important role in the outcome of the game than fast movements. That is, changing the layout according to the characteristics of the stage or the way of progress, the characteristics of the characters possessed, etc. will have an important impact on the outcome of the game. The popularity of Auto Chess shows that the success of games born through modules is not accidental. The process by which users can freely combine and arrange various elements of the game according to new ideas or according to their own interests through modules can make people create new game rules or focus on the game. And in many cases, the modules are carried out in a way that strengthens the advantages of the original game. In addition, the needs or requirements of users can be reflected in this process, and the game can be improved by collecting opinions widely. Before "Auto Chess", there were many games that were derived from modules and achieved great success. "League of Legends" through the "Dota" module, "PUBG Mobile" through the "Arma" series of module development, both games have achieved great success in the global market. "League of Legends", "PUBG Mobile", and "Auto Chess" all use the advantages of modules to develop games that are more adult than the original. From this perspective, modules have played an important role in the development of new games and the formation of the game market after 2010. After "Auto Chess" became popular, many developers began to make similar games. For game companies that need to ensure a large number of users, they should consider making popular games, but this will lead to a proliferation of similar games. Moreover, imitating game productions that are mainly conducted in a predetermined manner will be criticized for negatively affecting the promotion of creativity or the development of game development methodology. In order to quickly create similar games and launch them on the market, there are cases where imperfect games or games that have not been safely solved for flaws and vulnerabilities have emerged. 4. Changes in the arcade game hall In May 2019, many arcade game companies from South Korea and Japan participated in the PlayX4 Game Expo held at Ilsan KINTEX (Korea International Convention and Exhibition Center). Including music rhythm games, sports games and many other games suitable for both men and women appeared at the fair, attracting people's attention and showing that games are no longer exclusive entertainment for some people, but can be enjoyed by the whole family. culture. The arcade game hall is also becoming an entertainment space for everyone to enjoy together. The increase of indoor playgrounds using virtual reality content has also become a factor in promoting the development of the arcade game market. Not only have stores that provide virtual reality game services appearing, but the introduction of virtual reality games and content in existing arcade game halls has also increased. Relatively speaking, children's cafes that introduced digital content late have also introduced virtual reality games and riding arcade games. However, the operating conditions of the new arcade arcade have also changed. To put it simply, the cost of investment is substantially higher than the existing arcade game hall. Because it is different from the existing hidden arcade game halls, opening a business in an open place or a place with a large floating population is more conducive to business operation, so construction costs, rental costs, and decoration costs have increased significantly. Virtual reality game equipment or experience equipment is mostly bulky and difficult to deploy efficiently. Therefore, even if the number of equipment is the same as in the past, more space is required. And these devices are more expensive than the original arcade game consoles. In addition, virtual reality games need to wear VR glasses, because they are blindfolded, security personnel are also required. Owners who can afford these costs can set up arcade arcades as large-scale stores, but small owners will increasingly find themselves in a difficult situation. Noryangjin Online Game Park, Hyehwa Ace Game Plaza and other arcade game halls that used to represent a region have closed down one after another. Although the personally-run arcade game hall responded by changing the main equipment to a coin-operated karaoke hall, a claw machine, etc., over time, it will eventually go bankrupt because no one cares. On the contrary, the large arcade game hall established with the help of strong funds has been further developed. Compared with existing game halls, most of these arcade game halls are located in well-accessible locations. Moreover, the space layout and the use of equipment showed a trendy side, which enabled the arcade game hall to achieve "qualitative" development. The amusement arcades that settled in general shopping malls have begun to become places where all ages and the whole family can enjoy themselves together. The arcade game hall is undergoing various changes. In the process, there has been a phenomenon of concentration on large companies with sufficient financial strength. On the other hand, the prejudice and bad impression of arcade game halls formed by the previous generation has also been rapidly improved. Whether the arcade game hall can realize the "qualitative" change that allows everyone to relax and enjoy a happy entertainment place is expected. 5. The prospects of game streaming services and their expectations and concerns Multinational companies such as Google, Apple, Amazon, and Microsoft have all announced plans for game streaming services (Streaming Service) in 2019. The game streaming service is based on Cloud technology. If streaming services can be realized on a stable technical basis, different types and configurations such as mobile devices and PCs can all enjoy high-quality game services. What attracts attention along with game streaming is a usage form called subscription. Existing games earn income by selling game installation packages or in-game items, but the game streaming service introduced above adopts a method of paying a specified fee and choosing various games to enjoy freely within a specified period. The game streaming services provided by Google through STADIA will be divided into two types. One is the "Basic Edition". The basic version provides free services and supports up to 1080p resolution, 60fps and stereo. The other is the "Professional Edition". The Professional Edition provides paid services, supports up to 4K resolution, 60fps and 5.1 surround sound, and the price is $9.99 per month. For subscribers of the "Professional Edition", free games will be provided regularly. In addition, it is also planned to provide games that even users who subscribe to the "Professional Edition" will have to purchase separately. As long as Apple's ARCADE pays a subscription fee, you can freely enjoy more than 100 exclusive games. At the same time, special games will be provided, including "Fantasia" newly launched by Hiroshin Sakaguchi, who made "Final Fantasy". In addition, if you bind an Apple account, you can play up to six people with one package. Microsoft plans to cooperate with SK Telecom to test Project xCloud in the third and fourth quarters of 2019. This test belongs to the preparation stage of improving the service, and aims to collect the actual use environment and scripting experience faced by game users in the cloud environment. After analyzing these experiences, Microsoft plans to launch formal services through demonstration services and other processes. From the user's point of view, the advantage of game streaming is that you can freely enjoy high-quality game services by paying a certain fee. It can be seen from Apple's charging policy that the possibility of using games as content that the whole family can enjoy together is very high. Google also plans to provide the ability to go directly to the game when watching game videos on YouTube, etc., which will greatly improve the accessibility of the game. Streaming service companies that acquire users can earn stable income every month through subscription fees. Ensuring income can improve the stability of the business, while also increasing subscribers through other services. Streaming services will also be a very good opportunity for game developers. In order to provide game streaming services, we must first ensure a large number of games. In order to attract different subscribers and increase their satisfaction, not only well-known games or large-scale games, but also small-scale casual games are needed. Under such circumstances, the game procurement competition is becoming increasingly fierce, and games developed by stable developers will attract attention. Developers who provide games for streaming services can gain new markets through large-scale subscriber pools of multinational companies. For large Korean game companies that currently publish traditional games, game streaming services will become a new competitive element. Moreover, it is a very large multinational company that plans this service, so it will feel a great burden. Even, as gaming platforms, Google and Apple have exerted a strong influence in the Korean mobile game market through Google Play and App Store. It requires in-depth research and thinking about what effective strategy should be adopted when in direct competition with them. But game streaming services have not completely eliminated people's concerns about technological boundaries. In particular, most people are not yet sure whether the network environment has reached a level that can smoothly support streaming services. In order to provide game streaming services, we must first have a foundation that can process large-capacity data at high speed. However, even South Korea, the world's first to launch 5G commercial services, has insufficient coverage, and places with high-speed Internet infrastructure that can provide game streaming services are also extremely limited. Therefore, many people believe that before introducing necessary content in order to improve competitiveness, it is necessary to establish the technical foundation required to provide game streaming services. However, building a network usually requires large-scale investment and a lot of time, so it is expected that it will take a lot of time to provide real game streaming services. 6. Game, expand the scope to watchable content After 2018 and the first half of 2019, games in Korea have become watchable content. E-sports, which dominates the culture of "games to watch", has been included in the 2018 Jakarta-Palembang Asian Games (2018 Jakarta-Palembang Asian Games) as a performance item. South Korea broadcasted the e-sports games of the Asian Games through terrestrial television.
