Epic Game’s Fortnite (Image courtesy of Pixabay)
SEOUL, March 5 (Korea Bizwire) — Microsoft and Epic Games have withdrawn from the Korea Game Industry Association, marking a significant shift in their engagement with the South Korean gaming market.
Both companies, which operate major gaming platforms Xbox and Epic Games Store, respectively, have been removed from the association’s membership roster, industry officials confirmed today.
The departure is particularly notable for Microsoft, which had joined the association as a board member just two years ago during its acquisition of Blizzard Entertainment. Epic Games Korea had been a long-standing general member and previously served as the main sponsor of G-STAR, South Korea’s largest gaming exhibition, where it promoted its hit game “Fortnite” in 2018.
While both companies have declined to specify their reasons for leaving, they emphasized that their gaming services and business operations in South Korea would continue normally. “Our gaming services and business operations in Korea will proceed as usual,” a Microsoft Korea representative stated, with Epic Games Korea expressing similar sentiments.
Industry observers suggest the withdrawals may be connected to the broader trend of workforce reductions in the global gaming industry since 2023. “Both companies generate relatively smaller revenue shares from Korea compared to North America and Europe,” noted a public relations executive at a Korean gaming company, speaking on condition of anonymity.
“While they may continue their existing operations, they appear to be scaling back their external partnerships amid the workforce reduction trend.”
The gaming industry has experienced significant upheaval as of late. Epic Games shocked the industry by laying off 830 employees, representing 16% of its workforce, in 2023.
Other major players, including Microsoft’s Blizzard Entertainment and Riot Games, known for titles like League of Legends and Valorant, have also reduced their Korean operations as part of global restructuring efforts.
Kevin Lee (kevinlee@koreabizwire.com)
