Korean Messaging App Kakao Talk Generates $311 Million In H1 2013 From Gaming Services

    By Prasant Naidu | Small Business

    Asian messaging apps today are also concentrating on a second source of revenue – Gaming services. Along with Stickers, popular mobile messaging apps are earning dollars from the mobile games provided with the apps. South Korean free messaging app Kakao Talk is cracking the market and it has announced that Kakao Games has generated 348 billion Won ($311 million) in revenue during the first half of 2013.

    Korean Messaging App Kakao Talk Generates $311 Million In H1 2013 From Gaming Services image kakao talk1Korean Messaging App Kakao Talk Generates $311 Million In H1 2013 From Gaming Services

    The platform – Kakao Games was initially launched with three games and has been available worldwide for a year now. The recent revenue numbers shared by the Seoul based company is appreciating since it is has been 194 percent from the final quarter of 2012, when the platform grossed 118 billion Won ($105 million).

    The figures are gross revenue and the total income would be shared by developers, Kakao Talk and Apple/Google mobile platforms. The interesting bit to note here is that all revenue has been earned from in-app purchases and developers have not been charged to showcase their apps on the platform. In fact there has been no fee for downloads or user subscriptions.

    The messaging app that had recently announced that it has passed 100 million registered users, also shared that the games that are popular among the users have passed a cumulative 400 million-plus downloads.

    The company is now looking to use the Kakao Talk as a platform to connect developers with gamers. Keeping its focus primarily in Asia, the company added that,

    “Just until a year ago, mobile game applications struggled to attract 1 million downloads. Kakao game platform completely reversed this trend, and gave birth to eight games that recorded more than 10 million downloads. More than half of these games that recorded 10 million downloads were games from small or mid sized developers.”

    For now the Korean messaging app has competition from the Japanese messaging app LINE which clocked 150 million downloads for its games platform last month. Though Kakao has released better numbers but at the same time it has new competition from Tango which became the first ‘non-Asian’ messaging app to introduce a games platform last month. Canadian based Kik is also planning possibilities around games and relevant content.

    Kakao has been popular in its country, where it boasts of being installed in more than 90 percent smartphones but it still has to show the same popularity in international countries.

    Image courtesy: TNW

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