AHS-P2-4. Daum Kakao Gaming Sales 2015-2020

Daniel Castillo1
Faculty Mentor: Kimberly Nehls, Ph.D.2
1Lee Business School, Department of Management, Entrepreneurship, and Technology
2Lee Business School, Department of Marketing and International Business

The video game industry is large with many companies having their hands in it. Very notable companies include Sony, Microsoft, Nintendo, and the famous South Korean based company Daum Kakao. In quarter four of 2020 the company made 140.8 billion won just off of its video game branch Daum Kakao Games. 140.8 billion won can be compared to about 119 million USD and that is in a singular quarter. My objective is to analyze why Daum Kakaos Games are so profitable. How gaming companies make a profit depends on what game model they use. Some companies just have the consumer buy the game for a flat amount, some release free games that have microtransactions built in. Daum Kakao has games such as Black Desert Online, PlayerUnknown’s Battlegrounds, Path of Exile, and Eternal Return that they publish. I took a look at these games to see what sort of process they used to have players spend their money on the game and discussed with players of the game why they spend money. After looking into these games and talking with players I found they gain a large amount of their revenue from microtransactions made in game to get special cosmetics for your characters. These games are so profitable and successful in a market because they provide players with a way to customize and express themselves in an appealing way. It also allows them to show off to peers with what exclusive in game items they have obtained.


Nov 15 - 18 2021


All Day


AHS: Poster Session 2
The Office of Undergraduate Research


The Office of Undergraduate Research


One Reply to “AHS-P2-4. Daum Kakao Gaming Sales 2015-2020”

  1. Hello Daniel!
    While watching your presentation, I was very surprised of how much the Daum Kakao company made throughout the years. It really caught my attention when you showed the quarterly chart and how it showed the impact of revenues during the times of the pandemic. I also agree with what your peers and friends said about buying the battle passes and unlocking rewards while playing. Being someone who play videos games frequently, I can say that I enjoy buying battle passes because I am playing for a reason. What I mean by that is that I rather play a video game and unlock rewards instead of playing a video game and not receive anything. Overall, this presentation helped me learn much more about the company and how they strategize to make sales through video games!

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