South Korea's games target growth

Despite such obstacles, the potential rewards may be well worth the risks. Chinese online game provider Shanda Interactive has seen its revenue climb from $500,000 to $72m from 2001 to 2003, said Michael Cai, an analyst with Parks Associates. Exporting within Asia also seems to work, with games migrating from Korea to Taiwan, Thailand, China and Japan. Asian exports also seem to do well in the United States.

"It is challenging because you always have to go into a new market with different tastes, and you have to set up a business structure. But it can be done," said David Cole, an analyst with DFC Intelligence. "They almost didn't bring Pokemon to the US because they didn't think it could translate, but several billion dollars later, I'm sure the publisher is happy."

Gaming companies see ancillary opportunities in related businesses as well. A TV show based on "Ragnarok" is a hit in Japan, and comic book deals are being negotiated in 15 countries. In all, 25 million registered "Ragnarok" players remain active, and merchandising may follow. The company hopes to introduce the game in Vietnam, Australia and other new markets.

South Korea's gaming companies believe they have a competitive edge in the international market, in part because experiences in their own country have given them a head start. Executives say they have a better understanding of how to localise games for foreign markets.

Webzen's Kim said Asian game players, for example, like to beat each other up and try to kill each other's characters. But American players prefer the quest aspect of its games, so the company will amend its US versions accordingly.

Keeping the basic PC system requirements low and the game concepts fairly simple has further helped to preserve a maximum pool of potential players.

Whether a result of that or not, the interest in games is definitely expanding geographically and demographically. Gravity chairman Jeong-ryul Kim pointed out that 72 percent of his company's US subscribers are American natives, not ex-patriots familiar with Asian versions, and nearly 30 percent of "Ragnarok" players are female -- just a few of many reasons for his unabashed optimism about the future of the business.

Toward the end of the decade, he declared, "at least one-third of the entertainment market will be online games".