[BizHanKook] The approach of game companies to securing promising indie games is changing. Moving beyond direct investment in developers or taking on publishing for completed games, companies are now expanding their search for new titles by investing in specialized publishers and development support technologies. As artificial intelligence (AI) lowers the barriers to entry in game production and market conditions for small-scale developers shift, game companies are broadening their touchpoints to identify promising projects from the earliest stages of development.
Kakao Games and Wemade Max Invest in Publishers and Technology
Traditionally, game companies have either produced new titles through in-house development organizations or secured games by signing publishing agreements with external developers. They also use methods such as directly investing in promising developers to provide funding in exchange for future publishing rights.
Recently, however, cases have emerged where companies are investing not just in individual developers, but in specialized publishers that scout multiple indie games, as well as in development support technologies. This method involves investing in organizations that discover numerous developers and support game commercialization. By doing so, game companies can leverage the external publishers' developer networks and experience in sourcing new titles without having to directly expand their own internal scouting departments.
In September, Kakao Games made a strategic investment in Backend.ai, an AI-based backend development and operations automation company. The company stated that this would allow them to identify promising indie and small-scale developers early on and expand opportunities to connect them to future acquisition and publishing pipelines. They also plan to provide Backend.ai solutions to existing publishing partners to strengthen their development and operational capabilities.
In July, Wemade Max made a strategic investment in Red Brick House, a publisher specializing in indie games. Red Brick House was founded by professionals who previously handled indie game scouting, investment, and publishing at Neowiz. They discover domestic and international developers and provide support ranging from game development and investment to global release and service operations. Wemade Max plans to cooperate with Red Brick House to secure new intellectual property (IP) and expand its game portfolio.
AI Lowers Production Barriers; The Growing Importance of Publishers
This shift is rooted in the changing game production environment driven by the spread of AI. As generative AI is utilized in certain parts of game development—such as coding, graphics, and sound production—small-scale developers are increasingly able to pursue projects with fewer personnel and lower costs than before.
In fact, according to the "2026 Gaming Industry Report" published by the global consulting firm Boston Consulting Group (BCG), the percentage of games released on the global PC platform Steam that disclosed the use of generative AI grew from 6% in 2024 to 21% in 2025. As of last August, approximately 7,300 games disclosed their use of AI, with 88% of them utilizing generative AI for the creation of visual assets such as in-game graphics.
The overall scale of game releases is also increasing. According to the game data analysis site SteamDB, approximately 21,000 games were released on Steam last year, an increase from approximately 18,000 in 2024. Amid the advancement of development technology and the expansion of digital distribution channels, the number of games available for users to choose from continues to grow.
However, as the supply of new titles increases, competition to capture user attention is inevitably becoming more intense. While generative AI has reduced the costs and time required for game production, the sheer volume of new releases makes it increasingly difficult for individual titles to gain visibility. Consequently, the role of publishers—who evaluate market viability and provide support for marketing, localization, and distribution—is becoming even more critical.
For game companies, securing channels to review various projects from the early stages of development is becoming essential. Unlike direct investment in specific developers, cooperation with specialized publishers provides opportunities to encounter a wider array of developers and projects. Investment in development support technology also serves as a means to expand touchpoints with early-stage developers. Experts note, however, that for these investments to lead to the actual acquisition of promising IP, they must be backed by the capability to identify competitive projects based on the acquired developer networks and technology, and to translate those into publishing agreements or follow-up investments.
Lee Ji-eun, a researcher at Daishin Securities, explained, "Investing in indie games that have already been vetted externally or projects with proven performance during development can reduce risk and maximize ROI." She forecasted that companies can secure external IP through various methods—such as developer investment, acquisitions, and securing publishing rights—and ultimately increase profits by creating follow-up titles and expanded content based on that IP.