Baek Young-hoon, CBO (Chief Business Officer) of Smilegate, said, "We aim to actively continue serving subculture genres going forward," adding, "I believe that within the next two to three years, games in the animation category, including subculture titles, will account for more than half of our portfolio."
During a joint interview at TGS (Tokyo Game Show) 2026 on Friday, Baek said, "The subculture market itself has grown so large that the term 'sub' no longer fits. We are continuously exploring and developing high-quality games internally."
Regarding Chaos Zero Nightmare, which achieved meaningful results in the Japanese market, he said, "I believe it has established a solid foothold in Japan to some extent. Building on this success, if we release two titles—Dead Account: Two Blue Flames and Mirai Shiki next year—we could achieve quite significant results."
He further noted, "Honestly, this is not an easy market; it requires sustained effort. Both our Japanese subsidiary and the Korean business and studio development teams are still in the process of learning what Japanese users prefer. While it takes more time than expected, we are absolutely improving."
On leveraging Japanese IP for titles like Dead Account: Two Blue Flames, Baek explained, "Japanese IP does not guarantee success. We carefully evaluate whether the IP has growth potential, whether the royalty terms are reasonable, and whether it aligns with the game and world we aim to create. Only if all these factors align do we proceed."
He stated that Smilegate's business goal in Japan prioritizes retention over revenue. "Even if growth rates are somewhat modest, high user retention allows us to market more aggressively and acquire customers," he said. "If fans continue to gather, we can expand our existing IPs such as Epic Seven and Kaze no Kizuna, and grow to match other major franchises."
Describing his role as the head of Smilegate's Japanese operations, Baek said, "I believe my responsibility is to understand what Japanese customers want, reflect that in our products, and ensure fans can enjoy games without discomfort or frustration. I aim to play a key role in continuously interpreting fan needs."
Participating in TGS for the second consecutive year following last year's attendance, he highlighted a notable shift: mobile-only games have decreased while PC games have increased. "In the late 2010s or early 2020s, many indie game booths showcased mobile or tablet-based titles. Now, even indie developers are predominantly focusing on PC. It seems Japanese indie companies are increasingly considering expanding to global platforms."
in TECH
