Gravity enters into a memorandum of understanding regarding online game publishing in Southeast Asia
Gravity, Co., Ltd, an online game developer and publisher, has announced that it entered into a Memorandum of Understanding (“MOU”) with Infocomm Asia Holdings Pte Ltd (“IAH”), an online game publisher based in Singapore, regarding publishing rights for E million Chronicle Online (“ECO”), which is one of the online games offered by Gravity, in Southeast Asia.
Under the MOU, IAH will be the sole distributor of ECO in the Southeast Asian market, including Singapore, Malaysia, Thailand, Philippines, Indonesia, Vietnam, Australia and New Zealand. The parties agreed that IAH shall pay Gravity a license fee in the amount of US$1.8 million, including royalty minimum guarantee, in the event IAH becomes the service provider of ECO in the Southeast Asian market.
Il-Young Ryu, the CEO of Gravity, said, “The Southeast Asian market is one of the most promising online game markets. We would like to penetrate the Southeast Asian online game market quickly while managing risks associated with entering this market. That is why we have chosen IAH, a publisher with strong network and reliability, as a partner and signed this MOU.” Ryu also added, “We strongly believe that IAH is the best partner as it has an outstanding marketing know-how and sound financial basis. We hope to maximise the profit in the Southeast Asian market in cooperation with IAH.”
The beta testing of ECO is projected to start in June or July of 2006, and the schedule for the commercial launch of ECO in the Southeast Asian market will be determined thereafter.
In December 2005, Gravity entered into a worldwide (excluding Japan) publishing contract for ECO with Gungho Online Entertainment, a major Japanese online game publisher. ECO is currently commercially offered in Japan.
About GRAVITY CO., Ltd
Based in Korea, Gravity is a developer and distributor of online games. Gravity’s principal product, Ragnarok Online, is a popular online game in many markets, including Japan, Taiwan and Thailand, and is currently commercially offered in 21 markets. For more information about Gravity, please visit http://www.gravity.co.kr/.
About INFOCOMM ASIA HOLDINGS Pte Ltd
Based in Singapore, Infocomm Asia Holdings is an online game publisher with strong network with major publishers in Southeast Asia, including Singapore.