Netmarble joins P2E market with ITAM takeover

Netmarble Corp. is in discussion with blockchain gaming and NFT platform ITAM Games for a merger and acquisition deal. The move signals Korea's largest mobile-gaming company entering the P2E (play-to-earn) market in the already competitive space. 

RACE TO DOMINATE P2E MARKET

Netmarkble is reportedly in the final stage of its discussion with ITAM Games regarding the transfer of managerial rights, to be finalized next month. The investment volume is approximately 15 billion won ($12.7 million.) ITAM Games is an EOS-based blockchain platform. On the website, it describes its business model as creating a network across markets with business-oriented NFT technology.

“The race to create the P2E gaming ecosystem will speed up drastically if and when Netmarble acquires ITAM Games,” an investment banker familiar with the negotiations told The Korea Economic Daily. The industry insider did not rule out further acquisitions by Netmarble, given the fact that the gaming juggernaut is actively considering blockchain businesses. 

Netmarble plans to create its own P2E ecosystem around the platform created by ITAM Games. 

If Netmarble creates games based on ITAM Games’ blockchain platform, it can utilize the already existing functions set by the latter, such as the NFT exchange and its payment system for game developers.

ITAM Games’ P2E gaming ecosystem is operated by the company’s namesake cryptocurrency ITAM. P2E games are an emerging gaming sector where players can earn profits in various ways through gameplay using blockchain technology.

ITAM can be traded with Binance Coin, issued by the world’s largest cryptocurrency exchange called Binance. Netmarble believes the accessibility will be attractive to users abroad. 

FROM MOBILE TO BLOCKCHAIN

In the early 2010s, Netmarble founder and chairman Bang Jun-hyuk turned the company around by redirecting most of the company’s resources into developing a mobile gaming unit. 

As a result, the company not only became financially solvent but grew to become one of Korea’s three main online gaming giants along with Nexon Co. and NCSoft Corp. 

Now the company is at another turning point. 

During a conference call for the third quarter earnings report last month, Bang revealed his plans to incorporate blockchain and NFT into online gaming. In the race to have a bigger share of the P2E pie, game developers are aggressively pursuing collaborations within the industry. 

WeMade Co. and Com2Us are currently leading the competition in expanding the domestic P2E ecosystem. The two game developers are forming MoUs with industry leaders to host more games on their WEMIX and Hive platforms; and reportedly looking into possible acquisitions as well.

An industry insider said P2Es could be the determining factor in whether the online gaming industry will survive in the rapidly changing climate of metaverse and more.

“With gaming giant Netmarble joining the race, change in the race towards who will lead [Korea's] P2E business is now inevitable,” said the expert.

(Updated with backgrounder on Netmarble on Dec. 30)

Write to Min-ki Koo at kook@hankyung.com
Jee Abbey Lee edited this article.