Korean electronics firms bring their A game to markets

Industry

Published: 13 Jul. 2023, 14:53

Korean electronics firms bring their A game to markets

League of Legends player Faker poses for a photo in front of the organic light-emitting diode (OLED)-powered gaming monitor Odyssey OLED G9 at the T1 headquarters in Gangnam District, southern Seoul. [SAMSUNG ELECTRONICS]

Samsung Electronics and LG Electronics are neck-to-neck in the gaming market, as the two companies aim to enlarge their presence in an industry relatively immune to economic seesaws.

Samsung Electronics opened a shopping mall for gaming products, “Samsung Game Portal,” on its online store, the electronics manufacturer announced Monday. Its key products, including smartphones, monitors, TVs and solid-state drive storage devices (SSDs) all have a place in the gaming market.

The flagship Galaxy 23 Ultra for mobile games, flash-based storage device SSD offering speedy imaging, Neo QLED TV and 49-inch curved organic light-emitting diode (OLED) Odyssey G9 for widescreen gaming are available for purchase on the online mall.

Samsung plans to grow the game portal into a community that not only shares device specifications but also reviews by experts both domestically and overseas, as well as promotion sales and game-related news.

LG Electronics in 2019 launched a gaming brand UltraGear that showcases monitors, laptops and speakers that are specialized for gaming.

UltraGear sponsors Starcraft and League of Legends competitions to promote its products.

The gaming market appeals to electronics makers due to its high market value and resistance to economic cycles, unlike other appliances that are easily impacted by volatile demand.

Market tracker Future Market Insights estimates the gaming monitor market to hit $18.4 billion by 2033, outstripping the overall monitor market’s growth rate.

Models play a game of League of Legends (LOL) on a gaming monitor of UltraGear, the official sponsor of monitors for LOL competitions in Korea and Europe. [LG ELECTRONICS]

Games that require complex graphics and image processing can also boost secondary markets.

The gaming market — whose customers have high standards for new equipment — is considered a survival arena for computers, smartphones, high-resolution monitors and SSDs equipped with advanced central processing units and graphics processing units.

Comparing smartphones' ability to handle games without lag or temperature changes is a non-negotiable performance test for new models. Devices that disappoint gamers can quickly lose their reputation within the industry.

The fact that most gamers use more than just one electronic product, pairing a monitor with a game console or a smartphone for example, suggests that appliance makers can secure a loyal customer base if they succeed in satisfying it.

Samsung and LG are adding cloud gaming service features to upgrade their TVs.

Cloud gaming services allow users to run games on the internet via remote servers without downloading or installing the game on their consoles. Microsoft, Sony and Nvidia have identified the cloud gaming market as a future growth engine and are creating their own cloud gaming services.

Samsung Electronics started installing the “Smart Gaming Hub” on its TVs and monitors in June last year to offer a collection of cloud gaming services such as Microsoft’s Xbox Cloud Gaming and Nvidia’s GeForce Now.

LG Electronics expanded the list of cloud gaming services available on its TV operating system webOS in April. As cloud gaming services also need a platform to operate, Samsung and LG TVs are expected to benefit.

The cloud gaming service market is forecasted to reach $8.17 billion in revenue by 2025, according to market researcher Statista.

“Although the cloud gaming service is still at the toddler stage, it will be at the center of marketing campaigns as its rise is a near given factor,” according to a source from the home appliance industry.

BY LEE HEE-KWON [sohn.dongjoo@joongang.co.kr]