NHN Corporation, a diversified global IT company listed on the Korean Stock Exchange, has announced a strategic partnership with Mysten Labs to enter the Web3 gaming space. NHN has an extensive IT-based business portfolio spanning several domains including gaming, payments, entertainment, IT and advertising. The company is an established player in services such as webtoon, music, commerce, fintech and cloud computing and leverages its extensive skills in IT and services.
Sui Blockchain: A Paradigm Shift for Decentralized Gaming
The partnership is anchored around the Sui blockchain, a first-of-its-kind Layer 1 blockchain and smart contract platform designed for Web3 gaming. This blockchain offers key features such as low transaction fees, fast transaction times, and high scalability, making it ideal for decentralized game development.
Evan Cheng, CEO and co-founder of Mysten Labs, cited their focus on user “stickiness,” a metric that has thus far escaped the broader Web3 ecosystem. In an industry where daily active users for the most popular chains barely reach 300,000, Mysten Labs’ goal is to bring Web3 to a wider audience. Cheng said: “It’s a code that Web3 has not been able to crack in its entirety, with daily active users of the most popular chains barely exceeding 300K. At Mysten Labs, our mission is to bring the benefits of Web3 to the masses. Creating products that actually attract user volume is our top priority.”
NHN’s robust gaming portfolio and future prospects in Web3
NHN’s gaming division forms a substantial part of its activities. The company is the largest social casino game developer in the APAC region, with flagship titles such as Hangame Poker. Additionally, NHN’s games have collectively registered more than 37 million users across mobile, desktop and online platforms. In terms of finances, NHN Gaming generated the equivalent of $80 million in revenue in the second quarter of 2023 alone.
Ujin Chung, the CEO of NHN company, stated that Mysten Labs was chosen for their technical expertise and the innovative capabilities of the Sui blockchain. He recognized a common problem: the gap between Web3 technology and engaging gameplay. NHN and Mysten Labs want to bridge this gap by focusing on user engagement and sustainability.
Chung explains: “That synergy will be driven by growth and sustainability, and those types of synergies are best served by the minds who have honed this skill in Web2 and have a proven track record of creating experiences that users enjoy. Through our partner selection process, Mysten Labs stood out to NHN for both their expertise and Sui’s innovative capabilities.”
South Korean gaming companies have been at the forefront of innovation in the industry for years. The country is considered the country of the world fourth largest market for gamers and continues to grow. The most recent shift in the industry – mobile gaming – originated in Asia.
The partnership has an ambitious roadmap, aiming to launch the first Web3 gaming projects in 2024. Both companies plan to continue collaborating on many new use cases for the Sui blockchain, with the aim of further expanding the landscape of Web3 game development to develop.