NHN Corporation Enters Web3 Gaming with Mysten Labs Partnership

NHN Corporation, a diversified global IT company publicly traded on the Korean Stock Exchange, has announced a strategic partnership with Mysten Labs to venture into the Web3 gaming sphere. NHN boasts a comprehensive IT-based business portfolio encompassing various domains, including gaming, payments, entertainment, IT, and advertisement. The company is an established player in services like webtoon, music, commerce, fintech, and cloud computing, leveraging its extensive IT and service operation skills.

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, rapid transaction times, and high scalability, making it ideal for decentralized game development.

Evan Cheng, CEO and co-founder of Mysten Labs, mentioned their focus on user “stickiness,” a metric that has so far eluded 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 broader audience. Cheng said, “It’s a code web3, as a whole, has not managed to crack, with daily active users on the most popular chains barely topping 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 utmost priority.”

NHN’s Robust Gaming Portfolio and Future Outlook in Web3

NHN’s gaming division is a substantial part of its business. The company is the largest developer of social casino games in the APAC region, with flagship titles like Hangame Poker. Moreover, NHN’s games have collectively registered over 37 million users across mobile, desktop, and online platforms. In terms of financials, NHN Gaming generated an equivalent of $80 million in revenue in the second quarter of 2023 alone.

Ujin Chung, the CEO of NHN Corporation, stated that Mysten Labs was chosen for their technical expertise and the innovative capabilities of the Sui blockchain. He acknowledged a prevalent issue: the gap between Web3 technology and engaging gameplay. NHN and Mysten Labs aim to bridge this gap by focusing on user engagement and sustainability.

Chung elaborated, “That synergy will be driven by growth and sustainability, the kind of which is best served by the minds who honed this skill in Web2 and have a proven track record of success in creating experiences that users enjoy. Through our partner selection process, Mysten Labs stood out to NHN for both their expertise as well as the innovative capabilities of Sui.”

South Korean gaming companies have been at the forefront of innovation in the industry for years. The country ranks as the world’s 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, targeting the launch of its first Web3 gaming projects in 2024. Both companies plan to continue collaborating on many new use cases for the Sui blockchain, aiming to evolve the landscape of web3 game development further.