Logo of Phnom Penh Post newspaper Phnom Penh Post - SK firm, Microsoft create ‘Netflix of video games’

SK firm, Microsoft create ‘Netflix of video games’

Content image - Phnom Penh Post
The Xbox series X (right) and Xbox series S consoles are set to be released Nov. 11. Microsoft

SK firm, Microsoft create ‘Netflix of video games’

To make a foray into the fast-growing South Korean console market, currently dominated by Japanese products -- Sony’s PlayStation and Nintendo’s Switch -- Microsoft has partnered with local telecommunications operator SK Telecom to promote its Xbox consoles.

Last month, Microsoft and SKT together launched Xbox Game Pass Ultimate in Korea, a video game subscription service modelled after Netflix. By using SKT’s 5G networks, the subscription service supports cloud gaming, allowing gamers to enjoy more than 100 Xbox games with their Android smartphones or tablets for a monthly fee of 16,700 won ($14.40).

“It might seem that SKT is simply acting as the retailer and distributor of Xbox games, but it’s SKT, not Microsoft, that will actually be running the subscription service. SKT will be in charge of marketing, the subscription process and customer service,” an SKT official said.

SKT will split the profits from the subscription service with Microsoft and game developers, adding a new business model to its decade-old conventional mobile carrier service.

SKT is aiming for 1 million subscribers by 2023.

The collaboration with SKT is expected to help Microsoft promote Xbox consoles to Korean gamers more familiar with the PlayStation and Switch. For users who do not have Xbox consoles, SKT and Microsoft also offer the Xbox All Access subscription service, a two-year installment plan that provides an Xbox console bundled with Xbox Game Pass Ultimate for a monthly fee of 29,900 won.

According to the Korea Creative Content Agency, the Korean console market saw rapid growth in 2018, increasing to 528.5 billion won from 373.4 billion won a year earlier.

However, only 9.3 per cent of Korean console users owned an Xbox 360 console, while 41 per cent had a Switch console and 37.8 per cent had a PlayStation 4.

Hoping to increase its market share, SKT suggested an extensive translation of Xbox games upon beginning discussions with Microsoft.

“Korean console users are unfamiliar with Xbox games, so the translation will make the games friendlier. SKT will negotiate Korean translation of Xbox games with Microsoft and game developers when introducing them in Korea,” the SKT official said.

Last year, fewer than 500 Xbox games supported Korean language. As of October, the figure has spiked to approximately 800 games, and more are on the way, according to an industry source familiar with the matter.

However, it remains to be seen whether the current 5G infrastructure is sufficient to enable the success of the subscription service. SKT said last month that it would first focus on providing 5G network access to business customers, and would share the cost of rolling out 5G infrastructure.

“Though SKT’s 5G networks lack nationwide coverage, the Xbox subscription service is a long-term business that SKT aims to operate throughout the next few years,” the SKT official said.

THE KOREA HERALD/ASIA NEWS NETWORK

MOST VIEWED

  • Joy as Koh Ker Temple registered by UNESCO

    Cambodia's Koh Ker Temple archaeological site has been officially added to UNESCO’s World Heritage List, during the 45th session of the World Heritage Committee held in Riyadh, Saudi Arabia, on September 17. The ancient temple, also known as Lingapura or Chok Gargyar, is located in

  • Ream base allegations must end, urges official

    A senior government official urges an end to the allegations and suspicions surrounding the development of Cambodia’s Ream Naval Base, now that Prime Minister Hun Manet has addressed the issue on the floor of the 78th UN General Assembly (UNGA 78). Jean-Francois Tain, a geopolitical

  • Cambodia set to celebrate Koh Ker UNESCO listing

    To celebrate the inscription of the Koh Ker archaeological site on UNESCO’s World Heritage List, the Ministry of Cults and Religion has appealed to pagodas and places of worship to celebrate the achievement by ringing bells, shaking rattles and banging gongs on September 20. Venerable

  • CP denied registration documents by ministry

    The Ministry of Interior will not reissue registration documents to the Candlelight Party (CP). Following a September 21 meeting between ministry secretary of state Bun Honn and CP representatives, the ministry cited the fact that there is no relevant law which would authorise it to do

  • Cambodian diaspora laud Manet’s UN Assembly visit

    Members of the Cambodian diaspora are rallying in support of Prime Minister Hun Manet’s forthcoming visit to the 78th UN General Assembly (UNGA 78) in the US’ New York City this week. Their move is an apparent response to a recent call by self-exiled former

  • After three deferrals, Capital Gains Tax to take effect Jan 1, 2024

    The General Department of Taxation (GDT) will implement the Capital Gains Tax starting January 1, 2024 to after being deferred three times as industrial players warn that the implementation might have some negative impact on the property market growth, which is down due to the economic downturn.