GungHo Online Entertainment, Inc. was founded in 1998 as a joint venture between the major American auction site “OnSale” and the SoftBank Group. Initially engaged in the online auction business, it was unable to achieve significant results in that field amid intensifying competition, and decided to withdraw in 2002. However, the turning point came afterward. GungHo partnered with the Korean game company Gravity to acquire the domestic operating rights for the online game “Ragnarok Online.” It then entered the online gaming industry and achieved rapid growth. This bold change in direction would later lead to GungHo’s success.

One of the most iconic events in GungHo’s history was the start of operations for the online game “Ragnarok Online.” With the domestic service launch of this game, GungHo achieved remarkable growth. In 2004, it recorded approximately 4.2 billion yen in sales and took first place in that year’s “Fast50” ranking of domestic growth companies. The success of “Ragnarok Online” catapulted GungHo into fame, although it also led to a high level of dependency on the title. Nonetheless, it achieved a stock market listing in 2005, firmly establishing its presence. Notably, its share price skyrocketed from the offering price of 1.2 million yen to just under 20 million yen at one point, which became a major industry talking point.

GungHo has continued to take on new challenges in line with changes in the gaming industry. In 2006, it launched a new platform called “GungHo Games,” a portal site that integrated casual games, avatar services, and online news. This project drew attention through collaborations with subsidiaries like Broccoli and partners such as Nihon Falcom, offering distinctive characters. In 2008, it acquired GRAVITY, thereby strengthening the foundation for its growth. This move expanded its scope for game development and unlocked further possibilities.

GungHo’s further success can be attributed to the 2012 release of the smartphone game “Puzzle & Dragons” (commonly called “Pazudora”). Its simple yet deep gameplay became a hot topic and quickly turned it into a hit. This success propelled GungHo into the top ranks of the mobile gaming industry, with mobile division sales surpassing those of its PC division. “Puzzle & Dragons” fundamentally changed GungHo’s revenue base, with sales reaching 2.7 times and operating profit 7.9 times that of the previous year—astonishing growth. Its stock price also soared, proving the company’s capabilities.

GungHo Online Entertainment has grown into a global gaming company through many trials and transformations since its founding. Its growth path is the result of skillfully blending online, casual, and mobile games while keeping up with the times. In particular, hit titles like “Ragnarok Online” and “Puzzle & Dragons” have made GungHo an indispensable player in the gaming industry. We can’t take our eyes off what innovative games GungHo will deliver next.