Electronic Arts is buying a 19% share in Korean games company Neowiz. This will make EA the second largest shareholder in the company, after CEO and founder Sung Kyun Na.
The purchase comes to a tune of $105 million (£53.6 million), the second largest overseas investment in Korean gaming ever (after Softbank's 2005 takeover of Gravity).
The two companies plan to co-develop four new online games, two of which Neowiz will have the rights to publish in Korea and Japan. The move builds on the relationship established between the two companies last year when EA consulted with Neowiz on the conversion of its FIFA franchise into an online-only game.
''We are extremely happy with the expertise Neowiz showed in launching FIFA Online in Korea last year,” said EA's outgoing chairman and CEO Larry Probst. “We think they will be a great partner for bringing other EA franchises to the rapidly growing market for online games in Asia.''
The move reflects EA's decision to close its Japanese studio in February. Commenting on the closure, one anonymous studio employee said, "I think this closure is also as a result of the Japanese market not being as exciting compared to the possibilities for growth in China and other parts of Asia."
Neowiz doesn't seem content to stop there, either. “We are pondering over several options regarding the overseas business, apart from the partnership with EA. We will work separately from EA in Japan and in other Asian nations,” said Choi Kwan-ho, Neowiz's vice president.
As well it should. Korean gaming is attracting its fair share of foreign interest thanks to its expertise in online gaming. Foreign investors hold up to half the shares at other major software companies in Korea, such as NCsoft and NHN.
The Asian market as a whole is a massive growth area, as the recent announcement of GDC China clearly demonstrated. SPOnG wouldn't be remotely surprised to see more and more development taking place in Asia.
The purchase comes to a tune of $105 million (£53.6 million), the second largest overseas investment in Korean gaming ever (after Softbank's 2005 takeover of Gravity).
The two companies plan to co-develop four new online games, two of which Neowiz will have the rights to publish in Korea and Japan. The move builds on the relationship established between the two companies last year when EA consulted with Neowiz on the conversion of its FIFA franchise into an online-only game.
''We are extremely happy with the expertise Neowiz showed in launching FIFA Online in Korea last year,” said EA's outgoing chairman and CEO Larry Probst. “We think they will be a great partner for bringing other EA franchises to the rapidly growing market for online games in Asia.''
The move reflects EA's decision to close its Japanese studio in February. Commenting on the closure, one anonymous studio employee said, "I think this closure is also as a result of the Japanese market not being as exciting compared to the possibilities for growth in China and other parts of Asia."
Neowiz doesn't seem content to stop there, either. “We are pondering over several options regarding the overseas business, apart from the partnership with EA. We will work separately from EA in Japan and in other Asian nations,” said Choi Kwan-ho, Neowiz's vice president.
As well it should. Korean gaming is attracting its fair share of foreign interest thanks to its expertise in online gaming. Foreign investors hold up to half the shares at other major software companies in Korea, such as NCsoft and NHN.
The Asian market as a whole is a massive growth area, as the recent announcement of GDC China clearly demonstrated. SPOnG wouldn't be remotely surprised to see more and more development taking place in Asia.
Companies:
Electronic Arts
Read More Like This
Comments
Joji 20 Mar 2007 16:38
1/1
That's good for the industry I guess, problem is that its all PC based and online. Do they actually play games offline and on consoles out there?