Kakao Games has recently published its annual earnings report, revealing significant losses for 2024. The Korean company records Q4 revenues of 160.1 billion won (111 million dollars), down 21.4% compared to the same quarter in 2023. Annual results are down 13.7% on last year, and the group continues to record losses (71 million dollars in losses in this fourth quarter, and 83.9 million dollars for the whole fiscal year). To recover, the group is counting on Chrono Odyssey and ArcheAge Chronicles. Both MMORPGs are preparing for internal testing ahead of closed betas.
This decline is attributed to fewer releases, particularly in the mobile segment, where revenues fell by about 30% compared to 2023. Kakao also justifies this by the exclusion of its former subsidiary ‘Sena Technologies’ from the report - following the sale of its shares. Similarly, reductions in Kakao VX's business to have been included in discontinued operations from the third quarter of 2024.
Chrono Odyssey and Archeage Chronicles
To tackle these problems, Kakao Games is ramping up its MMORPG push and has put Chrono Odyssey and ArcheAge Chronicles in the lead of its strategy. Chrono Odyssey, developed by NPIXEL’s Chrono Studio, features innovative gameplay systems. For instance, the "Chronotector" allows players to manipulate time and space, enhancing the dynamic combat mechanics to give it more of a wild feel. The MMORPG will release worldwide in the fourth quarter of 2025 and a closed beta is planned for the first half of the year.
ArcheAge Chronicles, the newly branded version of the anticipated ArcheAge 2, is set to launch in the first half of 2026. This is an MMORPG developed by XLGAMES that looks to draw in a wide audience through its simplified design and prioritization on single-player content. A closed beta will be held in the second half of 2025.
Broadening Their Prospects
Kakao Games is presenting their MMORPG to enthrall the western audience. The company has shared worries regarding the prolonged intervals between discoveries and launches, which could presumably lead to a decline in player interest. As part of its solution, Kakao Games intends to cut down on the time between the testing and the final releases thus, keeping the players pledged.
Kakao Games targets the Western market to diversify its income streams and reduce dependence on its domestic market. They have been tailoring this strategy according to the likes of different regions, including emphasized PC and console-driven MMORPGs for North America and Europe and furthering the development of trendy mobile titles for Asia.
In addition to Chrono Odyssey and Archeage Chronicles, Kakao Games is set to launch a number of other titles, as part of its action plan to restore financial stability. This includes the shooter Section 13 which is planned for a full release in the second quarter of 2025 and the survival game God Save Birmingham that is scheduled for the fourth quarter of 2025.
The firm is also allocating resources to Path of Exile 2, which they will publish in Korea. Kakao Games sees this title as a likely substantial source of income, leveraging on its free-to-play model. Path of Exile 2 could indeed have the capacity to provide a steady revenue stream to the company.
Learning from Past Mistakes
Kakao Games' current issues highlight the necessity of executing timely launches and having a diversified portfolio. The firm has admitted that the over-dependence on mobile games and the lack of new titles were the key factors for their decrease in earnings. By directing its resources to the development of top-notch MMORPGs and cutting down the waiting time between tests and releases, Kakao Games intends to not make these mistakes again.
The further postponements and the rebranding of ArcheAge Chronicles also act as an indicator of the challenges faced in satisfying player expectations. The MMORPG was supposed to be introduced in 2024, but has been delayed several times now. Kakao Games is optimistic that the rebranding will bolster the interest in the IP.
Kakao Games is at a turning point, with its profits depending on the market approval of its forthcoming MMORPGs. Chrono Odyssey and ArcheAge Chronicles are not just new entries in the genre; they represent a decisive pivot toward the Western market and an expansion of Kakao Games’ portfolio. As the firm gets ready for the internal tests and closed betas, the community will keenly observe if these titles will be able to keep their promise at getting Kakao Games back to its footing in the industry.
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