Technological advancements have significantly increased game production costs.
While this might not apply to indie or casual games, major titles require enormous development budgets. Even so, costs typically range from tens to hundreds of billions of won; exceeding 1 trillion won is rare. Yet, President Ichikawa started by asking for 11 trillion won. Since budgets are always exceeded, the actual required amount could be even higher.
It's easy to lose perspective with large numbers these days, but 11 trillion won is enough money to acquire several large corporations. It could likely buy entire renowned Korean game companies outright. If Ichikawa Shigeru had asked anyone else for this amount, they would have thought him insane.
I asked him, "The development cost is shocking. Was the $30 million you requested earlier for acquisition costs related to this?"
President Ichikawa nodded. "It's for a game company called Actalon. They hold several patents related to integrating haptic technology with games."
Taek-gyu briefly explained. "Virtual reality games have different interfaces and input/output methods than previous games. If development proceeds, they'll likely need to acquire more than just that one company."
President Ichikawa continued, "I've used the VR sex device made by Faceit and driven the AD3 made by CarOS. Those products achieved significant innovation in the pornography and automotive fields, respectively. I believe it's now time for similar innovation in gaming."
He began to elaborate on his vision. Users would wear a device combining VR and communication on their head and controllers resembling gauntlets on both hands. Through these, they would operate their characters and navigate the game world.
Taek-gyu nodded eagerly as he listened to the explanation.
"Ah! So it gives effects like controller vibrations."
"Correct. Penalties could even involve inflicting minor pain."
"That sounds good. The player feels pain when the character gets hit, and feels the impact when attacking."
Those of us less knowledgeable just listened quietly. Either way, it sounded interesting.
After a while, once the discussion concluded, Sang-yeop sunbae asked, "The game you're currently making is already a huge hit. Why try to develop a virtual reality game?"
"While making Lost Fantasy this time, I realized something. I no longer want to make games that anyone can create. I want to challenge myself to create a game no one has ever made before."
His refusal to rest on success and his challenging spirit are commendable. However, there's no guarantee it will lead to another success.
"This is a project that requires a long time and an enormous amount of money. In the past, I wouldn't have even dared to attempt it. The biggest difficulty I've faced developing games so far has been interference from investors and management. Because of that, I've often had to change development direction or alter scenarios. That's why I left Linix Pentagon."
The investor's pursuit of profit and the creator's artistic vision inevitably clash. Such disagreements sometimes lead to directors being replaced or projects being halted. However, since investing, we hadn't interfered at all. Because I knew nothing about games, and Taek-gyu unconditionally supported whatever he did.
He had already decided to create the virtual reality game. Was the remaining choice mine?
Even if the development cost is $10 billion, we don't necessarily have to foot the entire bill. Revenue from Lost Fantasy M and Lost Fantasy Online could cover a portion of it, although we'd have to forgo dividends for several years.
Considering the current pace of technological advancement, it's only a matter of time before virtual reality games emerge. And we have the technology and capital to support it. CarOS's AI, machine learning, and cloud computing technology. Faceit's VR technology and algorithms for processing big data. This is truly a mega-project.
And Ichikawa Shigeru is the only person capable of leading it. He has spent his life making the games he wanted to make, and no matter how many years it takes, he will create the game he wants to create.
The advent of the internet revolutionized people's lives significantly. One aspect was expanding the realm of human perception. Space is not just a physical entity but also exists in consciousness. Thus, the internet becomes a space, message boards where people gather become cafes, and sites selling goods become shopping malls. And people meet each other within online games. Therefore, even in a small room, one doesn't feel confined as long as there's internet access. Conversely, even in a vast space, lack of internet causes feelings of confinement and anxiety.
The development of smartphones and wireless communication technology created an environment where we are connected to the internet anytime, anywhere, which has now evolved into the IoT (Internet of Things).
In a way, the internet might be transitioning from the Paleolithic to the Neolithic era. And giant IT corporations are now preparing to usher in the Bronze Age and advance towards the Iron Age. Games play a crucial role in this. Although some countries designate gaming alongside alcohol, gambling, and drugs as the four major addictions and impose various regulations like shutdown laws or pre-censorship systems, most countries spare no national support. The reason is that gaming is a massive industry creating enormous added value.
What kind of future will virtual reality games create? Could they perhaps change the world even more than autonomous electric vehicles?
If successful, the development cost, no matter how large, won't be an issue. If it fails, not only money but also time will be wasted.
I asked President Ichikawa, "What's the game's name?"
"Currently, I'm thinking of it as an expansion of Lost Fantasy Online, and I've tentatively named it Seruana, after the continent."
At that moment, something flashed before my eyes.
A moment later, when I came to my senses, people were staring intently at me. I must have looked like I was spacing out.
I subtly stood up from my seat. "Excuse me, I need to use the restroom."
Taek-gyu quickly followed me out. Once I confirmed we were alone, I recounted exactly what I had just seen. Taek-gyu was aghast upon hearing it.
"What? 100 million?"
"Keep your voice down."
"Ah, okay."
"But is 100 million concurrent users even possible?"
Taek-gyu crossed his arms and thought. "In the past, it would have been impossible. But since the Chinese market opened up, concurrent user numbers in the millions aren't uncommon. There have even been games hitting 10 million."
"10 million people connected to one game simultaneously?" That's comparable to the population of a decent-sized country.
"Online games have a characteristic where people flock to where others are gathering. Who would play an online game no one else plays? Even for item trading, prices are higher on servers with more users, and drop as users decrease. Didn't Lumina's Dragon Slayer Sword price get halved as soon as the player count dropped?"
I recalled a quote from an IT expert I saw in an article. 'Everyone is on Facenote. Because everyone is on Facenote.' It sounds like simple wordplay, but it cuts to the core. The purpose of social media is to connect with people. But everyone who already uses social media has a Facenote account. Therefore, anyone new to social media has no choice but to create a Facenote account.
Similarly, the more users an online game has, the more meaningful the play becomes. In a single-player game, no matter how diligently you level up your character or obtain good items, it's just self-satisfaction. But in online games, all those things can be exchanged for real currency. If we could preemptively capture the virtual reality game platform, couldn't we continuously attract users in the future?
"How much could we charge for usage?"
"MMORPGs use either microtransactions or subscription models. Something like this would probably need a subscription. Usually, it's around 20,000 or 30,000 won. For a VR game, maybe 50,000 or 100,000 won wouldn't be out of the question?"
Once people have their basic needs met, they seek entertainment. The term Homo Ludens (Playing Man) didn't arise for nothing. Online games offer long hours of enjoyment for relatively little money compared to other hobbies. Markets in emerging countries like India or ASEAN, not just China, could potentially be developed.
If we set the monthly fee at $50 and secure 10 million paying users, that's $500 million. If we secure 100 million users, that's $5 billion. And this amount would consistently flow in every month!
If this is true, the $10 billion development cost is not an issue. Once a game is successfully created, subsequent costs are relatively low. Even considering operating and publishing expenses, the profit margin would be in the tens of percent.
It's strange when you think about it. In terms of market capitalization among the companies we acquired, OTK Games could be considered right after CarOS and Faceit. While I picked the first two using foresight, OTK Games was a company Taek-gyu simply decided to invest in. The investment back then was merely 1 billion yen, but now acquiring OTK Games would require at least 1 trillion yen. And if the virtual reality game succeeds, you probably couldn't buy it even for 10 or 20 trillion yen.
I patted Taek-gyu's shoulder. "Well done."
Taek-gyu blinked, looking clueless. "Huh? What did I do?"
***
A holding company cannot arbitrarily control the technology of its subsidiary companies. But it can request cooperation.
CarOS and Faceit expressed interest and indicated their willingness to provide active support. Of course, it wouldn't be free; terms needed negotiation. Team Leader Seo Sang-won shuttled between the US and Japan, mediating the conditions between the parties.
Meanwhile, OTK Games held a public presentation event at Tokyo Big Sight. Despite the high anti-OTK Company sentiment, crowds flocked like clouds, and competition for tickets was fierce. There was a minor disturbance involving protests by some Japanese conservative and anti-Korean groups in front of the building, but it wasn't a major issue.
With gamers and media worldwide watching, the official release date for Lost Fantasy Online was announced alongside the start of the open beta service. Since the open beta allowed all users free access, it was essentially the public release of the game.
Towards the end of the presentation, Ichikawa Shigeru himself stepped forward and made a shocking announcement. "Lost Fantasy has marked a milestone in gaming history. Many people think Lost Fantasy Online is the end of that history. But I think differently. Lost Fantasy Online will be the starting point for opening a new world. OTK Games will create a virtual reality game expanding the Lost Fantasy universe. To achieve this, we will move our headquarters from Tokyo to Detroit and collaborate with various companies."
This announcement sent the venue into an uproar. Reporters fired questions.
"What is the estimated development period?"
"Do you believe it's possible with current technology?"
"Are there countermeasures for the previous failure?"
He answered briefly. "We plan to complete development within three years. I recently met with CEO Kang Jin-hoo and received a promise of full support. This project will not be halted under any circumstances. That is all."
The virtual reality game development... dubbed the Seruana Project, sent gamers worldwide into a frenzy.
- They're going to make a virtual reality online game?
- As expected of Otaku Company!
- Is a VR game like something out of a game-lit novel really going to appear?
- It's probably not quite there yet. It's not exchanging electrical signals with the brain, just exchanging visual information using VR.
- That's how it starts. Later, as technology develops further, maybe real capsules will be created.
- Will this actually succeed?
- Kang Jin-hoo invested, so isn't there a good chance?
- Where will the development funds come from?
- They'll probably fund it with the money they ripped off from Japan's public pension fund.
- lol So Japan contributes to global game development again like this.
***
Open beta service began simultaneously in Korea and Japan. Characters leveled up during the open beta would carry over even after the official release and monetization. In Korea alone, 300,000 concurrent users flocked to the game. While it was uncertain how many would convert to paying users, it was undeniably a massive hit from the start. Those who played the game praised its world-building, graphics, and simple controls.
As the number of registered users surpassed 1 million and cruised smoothly, an official document arrived at OTK Games Korea.
We received and read it.
[Request for Cooperation on Self-Regulation for Lost Fantasy Online]
(Preamble omitted) We request your cooperation on the following matters:
Limit connection time to 4 hours per day to guarantee adolescents' right to sleep and study.
Require parental consent for adolescent payments and establish measures to block adolescents' game item trading.
Measure the game addiction inducement index before official distribution. (If the index is high, modifications to game content may be requested, and failure to comply may result in restrictive measures including distribution bans.)
Establish countermeasures and funds for game over-immersion.
Disclose probabilities for probability-based items and prohibit excessive gambling elements.
Establish internal censorship and regulation measures for violence and sexual content within the game.
Implement measures for gender equality within the game...
The list of demands continued endlessly after that.
Taek-gyu said, sounding dumbfounded, "What on earth is this? Where did this come from?"
Among the various government ministries, only one place would send something like this.
I checked the sending ministry listed on the official document and sighed. "It's from the Ministry of Gender Equality and Family."