• Journal of Korean Institute of Industrial Engineers
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• v.39 no.4
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• pp.260-270
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• 2013

This paper proposes a strategic portfolio model for managing performance of online games. The portfolio matrix is composed of two dimensions: financial performance and non-financial performance. Financial performance is measured by the conventional measure, average revenue per user (ARPU). In terms of non-financial performance, five non-financial key performance indicators (KPIs) that have been widely used in the online game industry are utilized: RU (Register User), VU (Visiting User), TS (Time Spent), ACU (Average Current User), MCU (Maximum Current User). Data envelopment analysis (DEA) is then employed to produce a single performance measure aggregating the five KPIs. DEA is a linear programming model for measuring the relative efficiency of decision making unit (DMUs) with multiple inputs and outputs. This study employs DEA as a tool for multiple criteria decision making (MCDM), in particular, the pure output model without inputs. Combining the two types of performance produces the online game portfolio matrix with four quadrants: Dark Horse, Stop Loss, Jack Pot, Luxury Goods. A case study of 39 online games provided by company 'N' is provided. The proposed portfolio model is expected to be fruitfully used for strategic decision making of online game companies.

• Journal of Korean Institute of Industrial Engineers
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• v.42 no.2
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• pp.138-150
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• 2016

This study aims to analyze the structure and characteristics of the domestic online game industry using network analysis. In particular, two-mode network analysis is employed to measure the network structure, centrality, and cluster for two types of online game platforms, online games and mobile games, from 1996 to 2014. We also conduct a dynamic analysis to capture the structural changes in the ecosystem by internal and external environmental changes before and after turning point for each online game platform. It is revealed that the online game econsystem has the higher number of clusters and higher concentration ratio than those of mobile game ecosystem. In dynamic analysis, both platforms exhibit similar trends over time with the increasing number of clusters, enlargement of largest cluster's size, and decreasing concentration ratio. This study is expected to provide fruitful implications for strategic decision making of online game companies and policy making for the online game industry.

• Journal of the Korean Operations Research and Management Science Society
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• v.39 no.3
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• pp.23-40
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• 2014

This paper measures the operational efficiency of domestic online game companies and analyze its trends and patterns by using data envelopment analysis (DEA). DEA is a non-parametric approach to measuring the relative efficiency of decision-making units (DMUs) with multiple inputs and outputs. 14 online game companies are selected as DMUs and three inputs (number of employees, capital and asset) and three outputs (sales, operating profit and net profit) are selected as DEA variables. First, the output-oriented BCC model and super-efficiency model are employed to measure the static operational efficiency of the online game companies from 2003 to 2012. We also conduct the dynamic analysis with DEA window model to capture the trends of their operational efficiency influenced by internal and external environmental changes. The results are expected to provide fruitful implications for strategic decision making of online game companies and policy making for the online game industry.

• Journal of Korea Multimedia Society
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• v.12 no.12
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• pp.1761-1768
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• 2009

In this paper, we implemented online real time strategy game using hand as the mouse in augmented reality. Also, we introduced the algorithm for detecting hand direction, finding fingertip of the index finger and counting the number of fingers for interaction between users and the virtual objects. The proposed method increases the reality of the game by combining the real world and the virtual objects. Retinex algorithm is used to remove the effect of illumination change. The implementation of the virtual reality in the online environment enables to extend the applicability of the proposed method to the areas such as online education, remote medical treatment, and mobile interactive games.

• Journal of Korea Game Society
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• v.9 no.2
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• pp.81-93
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• 2009

This study aims to investigate human capital in Korea's online game industry (as the representative of IT-based creative services) under the knowledge-based economy paradigm. In recognition of the importance of intellectual capital closely intertwined with human capital and the economic potential of the online game industry, Korean government has begun to show active support. In this context, this study measures the human capital efficiency in online game business by using non-parametric analysis (Data Envelopment Analysis, DEA). Most previous studies (human capital theory, knowledge based economy theory, economic growth theory) have proved that human capital has a very positive effect on sustainable growth of corporate management and wealth of nations. As such, this paper uses the DEA to obtain the efficiency of the human capital (scale, investment, education, compensation). The results of this study will suggest strategic implications on maximizing the human capital in online game corporations and provide a reference frame for government policies.

• Journal of Korea Game Society
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• v.15 no.1
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• pp.115-124
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• 2015

This research analyzed the case of Ncsoft to study the organizational learning, exploitation and exploration that create dynamic capability in hypercompetitive environment. First of all, we demonstrated the activities of exploitation and exploration in Ncsoft according to the life cycle of online game industry. An exploitation related to routine, learning and fit with existing environment brings about incremental innovation. In contrast, an exploration associated with non-learning, flexibility with changing environment results in radical innovation. We examined them based on the life cycle of its various game services. NCsoft that built the leading position in online game industry focused the exploitation activities at the stage of beginning period and growth, whereas NCsoft has increased the activities of exploration at period of mature. In addition, the firm conducts an exploration for its brand new game services and R&D. Conversely, An exploitation is conducted for sustainable updating of patch service and marketing and system building. The result implies that online game companies create sustainable competitive advantage using the balance between exploitation and exploration.

• Journal of Korea Game Society
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• v.11 no.1
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• pp.159-168
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• 2011

Online game industry has achieved remarkable development not only in Korea, but also in the world with support from huge progress in information technology. By the way, there was calm period that top tier MMORPGs had held their ranks in oligopoly situation before Aion's appearance. At that time, NHNgames succeeded to penetrate into the market and settle down as a major player. In this context, this study will identify the factors of successful market entry strategy and draw helpful ideas by analyzing case of NHNgames which succeeded to enter the market of MMORPG through the basic strategic framework of Kalyanaram and Gurumurthy. This discussion will provide several implications for the solution of online game market penetration problem which might be never ended and for the way of industry's development.

• Journal of the Korea Society of Computer and Information
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• v.12 no.2 s.46
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• pp.299-305
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• 2007

This thesis will show the preparation of politic alternative plan about reaction through studying the domestic and overseas research trend and theories about online games analyzing the related problems. Online games have been already placed as the major culture trend in our society and produced the economic wealth as the major theme of 'Korean trend hot wind', including improvement of our foreign confidence. And the investments in online games and related industry are expected to be great Blue Ocean to us to have relatively deficient endowed resources. But with these beneficial effects, many unexpected reactions have happened and often published by medias, and they will be expected to be serious. So, it is to establish the united solution system of disputes related to online games which are spread in each law. Through this, we must draw prevention effects and use that as the evidence of rational judgements. And we must make the base to give online games the opportunity of upgrading to national strategic industry and try to conduct the research in various fields between academic organizations.

• Journal of Korean Society for Quality Management
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• v.36 no.3
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• pp.87-101
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• 2008

This paper studied the determinants affected the gamer's flow and communication on personal factors and environmental factors. The study deeply researched on the influence of flow and communication on customer loyalty, comparing korean gamer's behavior with chinese ones as research objects. As a result for this study, on-line game with high customer loyalty are considered as the more successful ones, resulted in korean gamers more influential on customer loyalty than chinese gamers, and suggested the strategic directions for online game developers and services.

• Journal of Korea Game Society
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• v.9 no.3
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• pp.107-119
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• 2009

Online games belong to a technology-oriented service industry that has emerged from the assimilation of game contents and communication networks in the respective realms of culture technology (CT) and information technology (IT). This study examines the individual acceptance of online games as entertainment-oriented technology based on the belief-attitude-intention paradigm and the underlying hedonic and utilitarian motivations. To measure the latent variables influencing the acceptance process, a structured questionnaire was developed based on the existing Technology Acceptance Model. Research model analysis and hypothesis testing were carried out using a structural equation model. Results indicated that latent variables reflecting hedonic and utilitarian characteristics had a significant influence on user behavior in the acceptance of online games. By uncovering the core factors in! fluencing the acceptance of online games and thereby theoretically verifying the latent variables influencing the acceptance of entertainment-oriented technology, this study provides strategic implications for business models by game companies aimed at attracting a large user base and dominating the market.