Blizzard's Korean Revenue Takes a Hit

Blizzard Korea's revenue has been on a downward trend for three years now. In 2025, the company saw its revenue drop by 14.7% to ₩35 billion. This decline is largely attributed to a decrease in core game revenue, which fell by 18.5% to ₩28.94 billion. On the other hand, service revenue from providing localization services to its headquarters saw an increase of 11.8% to ₩5.59 billion.

The company's financial reports reveal that royalties paid to its headquarters in the US totaled ₩79.38 billion, a decrease of 11.8% from the previous year. When adding game revenue and royalty costs, it's estimated that Korean users spent around ₩108.3 billion last year. This marks a 13.7% decrease from the previous year's estimated ₩125.5 billion.

Despite the revenue decline, Blizzard Korea managed to increase its operating profit by cutting expenses. Marketing expenses, particularly advertising, plummeted by 79.6% to ₩806 million. Salaries also decreased by 11.8% to ₩6.81 billion. The company is restructuring and focusing on different strategies.

A significant development is Blizzard's decision to begin domestic services through Nexon starting August 12. This move indicates a shift in strategy, possibly due to the declining revenue and downsized local operations. The company seems to be exploring new avenues to stay competitive.

The overall gaming market in Korea appears to be shrinking. While Blizzard Korea's reported revenue is ₩35 billion, the actual market size is much larger. The company's financials suggest a larger expenditure by Korean users, but the trend is downward. This scenario presents challenges and opportunities for growth.