Kakao Games plans to use this year as a turning point for a performance rebound by rolling out a string of major new titles in the second half. After completing an intensive overhaul last year, Kakao Games is seeking growth momentum this year with two pillars: “global” and “PC and console”.
Kakao Games said in a regulatory filing on Tuesday it posted 2025 consolidated revenue of 465.0 billion won and an operating loss of 39.6 billion won. Revenue fell 25.9 percent from a year earlier and operating profit swung to a loss. Fourth-quarter revenue also fell 25.8 percent from a year earlier to 98.9 billion won, and the company posted an operating loss of 13.1 billion won.
In a conference call on Tuesday, Young-min Cho (조영민), Kakao Games chief financial officer, said 2025 was a year in which the company restructured its portfolio and strengthened its financial fundamentals through selective focus. He said it will keep a conservative cost stance this year while accelerating profitability improvement in the second half by reflecting results from major new titles from the third quarter.
Kakao Games’ key strategy this year is to expand PC and console platforms targeting global markets. Through the first half it will focus on completeness and market validation, then pour out core titles from the third quarter.
In the first quarter, it will introduce SMiniz, a mobile casual game that uses SM Entertainment intellectual property, and in the second quarter it will launch the strategy RPG Dungeon Arise in global markets.
Major new titles seen as the key to a performance rebound will take the stage in earnest from the third quarter. OdinQ, which inherits the company’s flagship Odin IP, will be released in the third quarter as a “global one-build” including Taiwan and Japan, after revising the initial plan.
Sang-woo Han (한상우), Kakao Games CEO, explained that it set the direction toward a global one-build launch to maximise the initial success scale of a single title and ensure that large-scale competitive content unique to MMORPGs operates stably. It is also targeting a third-quarter release for the 2.5D MMORPG Project OQ.
In the fourth quarter, it will release ArcheAge Chronicle, a major title based on the ArcheAge IP. The game, which expands to PC and console platforms, is set to raise its level of completion through external testing in the first half. In the first quarter of next year, it plans to release Chrono Odyssey, a PC and console action RPG targeting Western markets.
In the PC game segment, Path of Exile 2 and The Cube, Savers will support the lineup. Cho said global-targeted PC and console projects will sequentially disclose key information through testing up to launch to increase execution speed.
Financially, it will maintain its selective-focus stance. It will control labour costs to an increase of around 5 percent from the fourth-quarter level of last year, and manage marketing costs at around 10 percent of annual revenue. It will, however, spend marketing costs flexibly in periods when new releases are concentrated to maximise results.
Han cited “response to artificial intelligence technology” as a future growth driver. He said advances in AI technology will bring major structural change to the industry within 2 to 3 years, and that the company is preparing organisational and technological responses by applying AI across services, including not only development efficiency but also marketing and decision-making.
Han also said it will make visible the new titles it has been preparing based on the restructuring it has built so far. He said it will deliver a performance turnaround through well-made new titles diversified by platform, genre and region, as well as expanding its own IP.