As the global mobile gaming market sees growth in the hybrid casual genre, with titles like 'WOS: Whiteout Survival,' 'King Shot,' and 'Royal Match' led by Chinese, Turkish, and European companies, South Korean game developers are also entering the approximately 8 trillion won global market.
Among them is ActionFit, which generates 90% of its revenue from its mobile puzzle game 'Drop the Cat.' The company leverages its ad tech experience in advertising and data analysis to develop games and secure users in the global market.
Recently, in Gangnam, Seoul, ActionFit CEO Park In-ho discussed the success of 'Drop the Cat,' the development and marketing strategies based on ad tech experience, and the approach to the global hybrid casual market. Park stated, "Instead of searching for users after creating a game, we validate market potential through advertising and confirm profitability from the early stages to target the global market."
The hybrid casual genre combines simple, intuitive gameplay with growth, collection, strategy elements, and monetization structures, utilizing both in-app purchases (IAP) and in-app advertising (IAA) to enhance profitability. As of August 1, titles like 'WOS: Whiteout Survival' and 'King Shot' are among the top-grossing games on Google Play in South Korea.
Industry analysts project that the global casual gaming market will grow from approximately 27.725 trillion won (about $18.4 billion) in 2025 to nearly 94% growth by 2032, with the hybrid casual market expected to reach around 6.5 trillion to 8.5 trillion won ($5 billion to $6.5 billion). Consequently, more South Korean companies, including Neptune and 111%, are challenging this genre.
Park emphasized, "The key to success in the global market for this genre is not just the quality of the game; our competitive edge lies in integrating advertising operations and data analysis into game development and marketing." Unlike traditional development methods that focus on large-scale marketing after completing a game, ActionFit concentrates its development efforts on games that have been validated for market potential and advertising efficiency from the initial planning stage. The company's revenue has doubled on average each year since its establishment, with projections of 80 billion won in revenue this year, driven by the growth of 'Drop the Cat.'
'Drop the Cat' is a hybrid casual game that combines block-matching puzzle gameplay with cat characters and growth elements. It features intuitive controls that lower entry barriers while adding replayability and collection elements. Within six months of its launch, it surpassed 10 billion won in cumulative revenue and 3 million downloads, with approximately 45% of revenue coming from the U.S. and about 20% from Japan, accounting for 95% of total revenue from overseas.
ActionFit currently operates by quickly developing initial games with only core features to gauge user reactions, rather than spending long periods on fully developed games before marketing. The company employs a 'demand-driven' strategy, creating 20 to 30 test games each month and focusing development and marketing resources on projects that confirm market demand and business viability. Park explained, "In the past, we would test a completed game at about 10% of its final state, but now we can validate user reactions with just 3% completion."
Building on the success of 'Drop the Cat,' ActionFit plans to expand its development of new titles in the hybrid casual genre and its global publishing efforts. The company aims to not only develop its own games but also discover titles from external developers, providing support for advertising testing and data analysis while enhancing global monetization validation.
Park noted, "While domestic developers have sufficient capabilities to create games, they often lack experience in securing global users and managing advertising efficiency. If they can combine game performance with data-driven marketing capabilities, South Korean developers can achieve significant success in the global hybrid casual market."
Artificial intelligence (AI) is accelerating this rapid production and validation process. ActionFit is utilizing AI in planning, programming, and art production to reduce initial testing periods, and with advancements in its production structure, it anticipates being able to test around 300 games annually.
ActionFit plans to expand its hybrid casual new releases and global publishing business based on the success of 'Drop the Cat.'
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.