Core Viewpoint - The South Korean government, under President Lee Jae-myung, has shifted its stance on the gaming industry, recognizing it as a vital cultural sector rather than a substance of addiction [1][8][36]. Group 1: Government's New Policies - President Lee Jae-myung has publicly redefined gaming, stating it should not be classified alongside addictive substances like drugs and alcohol, which has previously stifled the industry [8][9]. - The government has abolished the controversial Game Rating and Administration Committee's pre-approval system, which had complicated the game approval process [9][10]. - Financial support has been allocated for the development of AI games and to assist small and medium-sized gaming companies in expanding overseas [10][11]. - The government has proposed to delay the classification of "gaming disorder" as a disease, aiming to reduce the stigma associated with gaming [11][12]. Group 2: Historical Context and Industry Challenges - For over 20 years, the South Korean gaming industry faced strict regulations, including the "Cinderella Law" and the classification of games as addictive substances [17][18]. - Despite these challenges, the gaming sector remained a significant source of foreign exchange, but recent years have seen a decline in growth and profitability [18][20]. - In 2023, the gaming industry experienced its first decline in 14 years, with over 40% of gaming companies reporting no profits and an annual operating profit decrease of nearly 60% [18][20]. Group 3: Global Trends and Competitiveness - Other countries, such as Saudi Arabia and India, are increasingly recognizing the strategic importance of the gaming industry, integrating it into national development plans [22][23]. - The European Union has also begun to support its gaming industry through legislation aimed at fostering growth [25]. - South Korea's shift in policy is seen as a necessary response to the competitive landscape, where it risks losing its status as a leading gaming nation if it continues to view gaming negatively [28][29]. Group 4: Broader Implications of Gaming - The global gaming industry is valued at approximately $170 billion, surpassing the combined revenues of the music and film industries [39]. - Gaming is not merely an entertainment sector; it plays a crucial role in cultural output and national soft power [42]. - The technological advancements in gaming have significant spillover effects, influencing various fields such as AI, graphics, and communications [46][50].

Group 1 - The Japanese mobile game industry has a unique development trajectory, originating from social games that thrived post-2007, with market size growing from 4.9 billion yen to 342.9 billion yen within five years [2] - The rise of social games led to a bubble, characterized by high costs and a surge in game failures, resulting in significant job losses and a shift towards outsourcing [3] - The first bubble burst in the social game sector was accelerated by the proliferation of smartphones, leading to a decline in social games, which were later replaced by mobile games with character collection and gacha mechanics [3] Group 2 - The introduction of smartphones allowed for more complex storytelling in games, with titles like "Chain Chronicle" and "Granblue Fantasy" setting new standards for narrative depth in mobile games [19][22] - The success of "Fate/Grand Order" (FGO) in 2015 marked a turning point, emphasizing the importance of narrative in mobile games and leading to a surge in demand for game scripts [25][37] - The influx of Chinese mobile games into the Japanese market, such as "Knives Out" and "Azur Lane," has disrupted the traditional Japanese mobile game landscape, leading to a decline in revenue for local companies [66][69] Group 3 - The Japanese mobile game industry is facing a crisis, with many companies experiencing revenue declines and struggling to adapt to changing consumer preferences [69][70] - The concept of "social game bubble burst" has been reintroduced, highlighting the industry's challenges in meeting the evolving demands of players for richer experiences and higher production values [81] - The competitive landscape is shifting, with companies needing to invest in high-quality narratives and production values to remain relevant in the face of successful foreign titles like "Genshin Impact" [75][80]

Group 1 - MiHoYo's recent crackdown on cheating in the game "Genshin Impact" highlights its commitment to maintaining a healthy gaming ecosystem and player experience, which is crucial for sustaining player engagement and willingness to spend [1] - The successful collaboration with the Shanghai police to dismantle a cheating operation demonstrates the effectiveness of MiHoYo's legal and technical measures in protecting its products [1] Group 2 - The mobile game "Goddess of Victory: Nikke" has faced issues with abnormal gift redemption, leading to an official apology and compensation to players, which may impact its market competitiveness [2] - The game's performance is critical for Tencent, as it competes with other titles like "Honkai: Star Rail" and "Blue Archive," and the company must work to regain player trust and stabilize revenue [2] Group 3 - Square Enix announced the release of "Dragon Quest 1 & 2 HD-2D Remake" on October 30, 2025, across all platforms, with a notable release on Switch 2 [3] - The success of previous remakes by Square Enix suggests that this title could become a significant revenue source, alleviating concerns about the company's reliance on the "Final Fantasy" series [3]