Kakao Games Reports Q3 Revenue of 69.1 Billion Won, Operating Loss Continues

Kakao Games Corp. announced on the 4th that it recorded consolidated revenue of approximately 69.1 billion won and an operating loss of approximately 26.3 billion won for the third quarter of 2026. Revenue decreased by approximately 46% year-over-year and approximately 8% quarter-over-quarter.

Under Korean International Financial Reporting Standards (K-IFRS), revenue for the comparison periods stood at 127.5 billion won in Q3 2025 and 75.0 billion won in Q2 2026. Operating losses for those periods were 5.4 billion won and 23.0 billion won, respectively, extending the company's loss streak into this quarter. The company explained that a lack of new releases and the downward stabilization of revenue from existing titles affected earnings.

By business segment, mobile game revenue came in at approximately 50.6 billion won, while PC online game revenue reached approximately 18.5 billion won. Mobile game revenue dropped by approximately 40% year-over-year and approximately 4% quarter-over-quarter. PC online game revenue decreased by approximately 57% year-over-year and approximately 17% quarter-over-quarter.

Kakao Games is seeking a rebound through upcoming new releases and international service preparations. On December 12, the company will officially launch the PC online action-slash game Path of Exile 2, and it is preparing to simultaneously release the MMORPG Odin Q: Valkyrie's Call (hereinafter Odin Q) in South Korea, Taiwan, and Japan in January 2027. Building on the live service experience of the original Odin and the development capabilities of Lionheart Studio, Odin Q will feature quarter-view combat and large-scale competitive content.

For the fourth quarter, the company plans to build on the momentum of World of Dokkaebi, which launched in October. According to Kakao Games, the title rose to No. 1 on Google Play's top-grossing chart within five days of release and has since maintained a top-tier position. Featuring 2.5D pixel graphics infused with traditional Korean aesthetics and a narrative based on the Myeolgwi Sudojeon webtoon IP, preparations for its global service have also begun.

Additional lineup reveals include the open-world zombie survival simulator God Save Birmingham, the PC MMORPG ArcheAge S: Strait of Freedom, and the pixel-art collectible action RPG Guardian Maiden. The company plans to continue expanding its IP to global users through new titles across various genres.

Under its new management system, Kakao Games is streamlining its business structure while pursuing M&As, strategic investments, and new title publishing agreements. Over the past three months, the company acquired global casual game developer Me2on and made strategic investments in AI backend technology company BackendX, among others, with plans to discover additional promising developers and tech firms.

Kakao Games CEO Si-woo Lee said, "We are targeting diverse player segments with clear differentiation points for each IP, once again proving our core competitiveness based on a solid portfolio." He added, "We will pursue new title launches, shareholder returns, and investments to secure new growth opportunities, doing our utmost to ensure these efforts lead to a meaningful rebound."

Originally written in Korean, this article was translated with AI assistance and edited by a native English-speaking editor. Every translation is reviewed by our editorial team before publication. [Read Original]

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Byungho "Haao" Kim

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