Gala Inc. Explained

Gala Inc.
Native Name:株式会社ガーラ
Type:Public
Foundation:September 3, 1993
Location:Shibuya, Tokyo, Japan
Area Served:Japan
South Korea
Key People:Satoru Kikugawa, Group CEO of Gala Inc.
Industry:Video games
Services:gPotato, Mobblo
Products:Flyff
Rappelz
Flyff Legacy
Rappelz M
Subsid:Gala Japan Inc.
Gala Lab Corp. (Korea)
Gala Mix Inc. (Korea)
Num Employees:65 (As of August, 2020)[1]

is a holding company based in Tokyo, Japan, that administers GALA Group, which is made up of subsidiary companies of Gala Inc. The group of companies comprises three types of businesses: MMORPG games, web design, and data mining. Within the group companies Gala Lab Corp. was established in South Korea after the merger of Aeonsoft and n Flavor[2] and develops games for the group's online gaming portal gPotato. GALA Group focuses on developing largely multiplayer online role-playing games. To cover local areas, there are group companies located in the United States, Japan, and South Korea.

GALA Group's games are free-to-play. However, there is a micro-currency system that can be used to buy in-game upgrades. Games and their item shops can be accessed by the Group's regional gPotato portal sites.

History

Early years

Gala Inc. was founded in September 1993 by Satoru Kikugawa. While at Keio University, Kikugawa was an avid event planner and would rent out clubs in Tokyo's Roppongi district where students could gather. He called these events "Gala". With the expansion of the internet in the early nineties, Kikugawa, inspired by his university events, founded Gala Inc. to bring people together online.

The early business model of Gala Inc. was in homepage creation. One of Gala Inc.'s first website creations was for the All Japan Pro Wrestling site in 1996. The initial business approach was to create home pages free of charge and then share the advertising revenue. Gala Inc. also set up bulletin boards on sites for visitors to share their thoughts. In February 2000, Gala Inc. acquired the company RIS Inc., which was then renamed to Gala Web Inc. While Gala Inc. acts as the headquarters for GALA Group, Gala Web continues to develop websites and systems for clients in Japan. Gala Inc.'s early business model eventually led to Gala's gaming business model, where its games are free, and sales are generated from micropayments.

Globalization

In November 2005, Gala-Net Inc. opened as a North American subsidiary and online games publisher with its office in Sunnyvale, California. In October 2006, Gala-Net established a wholly-owned subsidiary, Gala Networks Europe, based out of Dublin, Ireland.

Also in 2006, South Korean game developers Aeonsoft Inc. and nFlavor Corp. joined GALA Group. Aeonsoft's flagship game was Flyff, while nFlavor brought the Rappelz MMO into the Group. The two game developing companies would later merge to become Gala Lab Corp. in July 2010.[3] In December 2007, another subsidiary was created after Gala Inc. split off its buzz research section to create a new Group company named Gala Buzz Inc. The company offered data mining and information analysis services for corporate clients through its e-mining and buzz reports. Gala Buzz Inc. was sold to Hottolink Inc. in May 2012.[4]

In May 2011, Gala Inc. announced it would enter the smartphone market. The company planned to launch a smartphone social game platform and the development of games for said platform. Gala Pocket Inc. was established to operate the gPumpkin platform and Gala Lab Corp. and third-party developers would develop the games.[5] Gala Inc. also expanded in 2011 by opening a branch office in Seoul, South Korea that was tasked with handling the technical issues across all of GALA Group. In May 2012, that branch was transferred to Gala Lab also located in Seoul.[6]

Acquisition

In February 2013, Gala-Net, Gala Networks Europe, and Gala-Net Brazil were acquired by Webzen.[7]

The majority of GALA Group's business revolves around MMORPG and smartphone games. Within GALA Group, Gala Web Inc.'s main business was in web design, but this company was sold to Tribeck Strategies, Inc. in 2015.

Subsidiaries

Game Publishing

The companies publish games by the Gala Lab development teams in Seoul and other third-party developers. The publishing companies in GALA Group are:

Game Development

  1. Flyff, or "Fly for Fun", is the first MMORPGs to introduce free roaming flight.[10] Flyff is a party-oriented MMO game where no character can do everything, and efficient play requires working together in groups to level up by defeating monsters. One distinctive feature is its flying system; flying is the normal method of transportation for characters above level 20. The game offers a vast amount of content that is constantly being updated, and it caters to audiences both young and old. In June 2004, the game was awarded the "Best Game of the Year" by South Korea's Ministry of Culture.[11] [12]
  2. Rappelz is set in a medieval fantasy world, dominated by three races: the Deva, who represent light, the Asura, who represent darkness, and the Gaia, humans that possess an affinity with nature. Each major installment of the game is referred to as an "Epic". The current installment, which is the second part of Epic VII, is called "Epic VII: Dimensions". The game was also published in Arabic for MENA gamers by the Emirati company Game Power 7. The game was released under a different title known as Hope of Nations (Arabic: أمل الشعوب), and was launched on March 16, 2009.[13]
  3. Street Gears is based on a persistent manga-style universe. It is a massively multiplayer roller game where players can challenge each other's in races or trick contests. As for how to use the tricks, it is related to the context and environment of the game. This means that some tricks can only be used while skating on the ground and/or during a jump, while others can be used while in the air, on walls or when there is a barrier that requires bypassing.
  4. Eternal Blade is a fantasy/anime MMORPG with a new concept of “Postmodern RPG” and Pioh System where Piohs (pet-type creatures) evolve at three stages that aid the player during the course of the game. The game also has a randomized map system to add to the gameplay variety.

Game Portal

To promote and publish games, GALA Group uses its gPotato game portal. People can play or download games from the gPotato portal for free. gPotato services downloadable client-based games. The gPotato portal launched in November 2005 in the US and 2007 in Europe, and was sold to Webzen in 2013. The gPotato portal and brand is one of the main assets of GALA Group. Currently, gPotato portals are serviced by two subsidiary companies of Gala Inc.

PortalLanguagesCompany
gPotato.jpJapaneseGala Japan Inc.
gPotato.krKoreanGala Lab Corp.

Community

As of September 2011, the global gPotato community has over 20 million registered members[5] [14] playing on 18 games globally.As with all free-to-play games or gaming communities, the number of registered users has to be differentiated from:

There are no public numbers for unique, active, or paying users.

Portal Features

Each gPotato portal is designed and maintained based on the cultural trends where that gPotato portal is serviced so the features vary on each gPotato portal site. In general, the portals offer:

Currency

The virtual currency is called gPotatoes. The gPotatoes can be used to obtain virtual game items via a premium item shop. gPotatoes can be purchased using credit cards, PayPal, charging through the mobile phone, through gPotato pre-paid cards or through earning free gPotatoes by taking online surveys. Payment methods differ from each gPotato portal based on the regional payment options available.

Games

Games Developed

TitleDeveloperGenreFirst Released
FlyffAeonsoft Inc.Client-based MMO2003
RappelznFlavor Corp.Client-based MMO2006
Eternal BladeGala Lab Corp.Client-based MMO2010
Masquerade Flyff[15] Gala Lab Corp.Client-based MMO2013
Flyff All StarsGala Lab Corp.Mobile RPG2014
Flyff PuzmonGala Lab Corp.Mobile match-three puzzle2014
Flyff Stomp RunGala Lab Corp.Mobile endless running2014
Flyff LegacyGala Lab Corp.Mobile MMO2016
Rappelz MGala Lab Corp.Mobile MMO2020
Flyff UniverseGala Lab Corp.Mobile MMO2022

Games Formerly Licensed

TitleDeveloperGenreFirst Released
ROSE OnlineTriggersoftClient-based MMO2005
Canaan OnlineXPEC EntertainmentBrowser-based MMO2008
Castle of HeroesSnail GamesBrowser-based MMO2009
DragonicaBarunson InteractiveSide-scrolling MMO2009
AIKA OnlineJoyImpactClient-based MMO2010
Vandia BreakerNamco BandaiBrowser-based MMO2010
Allods OnlineNivalClient-based MMO2010
KungFu Hero9weeBrowser-based MMO2010
Terra MilitarisSnail GamesBrowser-based MMO2010
Age of WulinSnail GamesClient-based MMO2013

Awards

Insider Trading Incident

In 2006, three Gala Inc. employees were directed to pay fines for insider trading when they purchased stock with insider knowledge that Gala had secured a deal with Dentsu.[21] On January 13, 2006, it was announced that the three were the first employees in Japan ordered to pay fines under a new law created by the Financial Services Agency of Japan.[22] Group CEO Mr. Kikugawa issued a public apology regarding the insider trading. Gala also released a statement outlining the changes to their compliance management system and procedures put in place to prevent insider trading from happening again.[23]

Notes and References

  1. https://gala.jp/pdf/es20200807.pdf (PDF) page 7. Gala Inc. 7 August 2020. Retrieved 2020-08-08.
  2. Web site: Aeonsoft and nFlavor Merger. Gala Lab Corp. June 2010. 2011-05-05. dead. https://web.archive.org/web/20120808093837/http://www.galalab.kr/eng/galalab/history.aspx. 2012-08-08.
  3. Web site: ko:단독키쿠가와 갈라그룹 회장한국서 번 돈, 한국에 쓰겠다 . ZDNet Corp . 20 May 2010 . http://www.zdnet.co.kr/news/news_view.asp?artice_id=20100520113301&type=det . 2011-04-05 . Korean.
  4. Web site: Notice of Divestiture of Subsidiary . Gala Inc . 25 April 2012 . 2012-06-04.
  5. Web site: GALA Group to launch smartphone social game platform . Gala Inc . 12 May 2011 . 2011-06-09.
  6. Web site: Notice of Transfer of Branch . Gala Inc . 15 May 2012 . 2012-06-04.
  7. Web site: More about gPotato & Webzen . gPotato.eu . 6 February 2013 . 2013-02-16.
  8. Web site: Global Online Community | Gala Inc.
  9. Web site: Gala Lab history . Gala Lab Corp . June 2010 . 2011-06-05 . Korean . dead . https://archive.today/20120731042447/http://www.galalab.kr/kor/galalab/history.aspx . 2012-07-31 .
  10. Web site: Flyff news . MMORPG.com . 2011 . 2011-05-24.
  11. Web site: ko:프리프등 3편 6월의 우수게임으로 선정 . iNews24 . 24 June 2004 . http://game.inews24.com/php/news_view.php?g_serial=118397&g_menu=020500 . 2011-06-04 . Korean.
  12. Web site: ko:대한민국 게임대상을 향해 뛴다눈길끄는 출품작 . Naver . 29 November 2004 . http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1=001&oid=030&aid=0000089366 . 2011-06-05 . Korean.
  13. Web site: Arabic Rappelz. Game Power 7. October 2009. 2011-05-24. https://web.archive.org/web/20110711071024/http://www.gamepower7.com/index.php/en/products.html. 2011-07-11. dead.
  14. Web site: オンラインゲームポータルサイト「gPotato」累計会員数 2,000 万人突破 . Gala Inc . 29 August 2011 . 2011-09-29 . Japanese.
  15. https://gala.jp/pdf/epr_20130509.pdf (PDF). Gala Inc. 9 May 2013. Retrieved 2020-08-08.
  16. Web site: Technology Fast50 Japan 2008 Winners Report . Deloitte . 7 January 2009 . 2011-06-01 . Japanese . dead . https://web.archive.org/web/20101204205642/http://www.tohmatsu.com/assets/Dcom-Japan/Local%20Assets/Documents/industry/jp_i_tmt_fast_2008_JP_Fast50_Report_J_final_010709.pdf . 4 December 2010 .
  17. Web site: Lighting the way, Deloitte Technology Fast 500 Asia Pacific 2008 Ranking and CEO Survey . Deloitte . 2008 . 2011-06-02 . dead . https://web.archive.org/web/20120402203323/http://www.deloitte.com/assets/Dcom-Global/Local%20Assets/Documents/dtt_tmt_fast500_asiapacific_2008.pdf . 2012-04-02 .
  18. Web site: Deloitte Technology Fast50 News Release . Deloitte . 7 October 2009 . 2011-06-02 . Japanese . dead . https://web.archive.org/web/20110726153532/http://www.tohmatsu.com/assets/Dcom-Japan/Local%20Assets/Documents/press_release/jp_p_press20091007_071009.pdf . 26 July 2011 .
  19. Web site: Deloitte Technology Fast50 News Release . Deloitte . 17 November 2010 . 2011-06-02 . Japanese . dead . https://web.archive.org/web/20110721220127/http://www.tohmatsu.com/assets/Dcom-Japan/Local%20Assets/Documents/Press/Release/jp_p_press20101117_171110.pdf . 21 July 2011 .
  20. Web site: EOY 2010 Japan日本代表が決定 . Ernst & Young . December 2010 . 2011-05-21 . Japanese . https://web.archive.org/web/20110303190948/http://www.shinnihon.or.jp/eoy/news/20101208.html . 2011-03-03 . dead .
  21. Web site: ja:ガーラ社長、インサイダー取引を謝罪 . StockWeather . 9 February 2006 . http://www.stockweather.co.jp/sw/news/2006/0209/ta118.html . 2011-05-15 . Japanese . https://web.archive.org/web/20110724195747/http://www.stockweather.co.jp/sw/news/2006/0209/ta118.html . 24 July 2011 . dead .
  22. Web site: ja:課徴金制度を初適用へ インサイダーで証券監視委 . 47 News . 13 January 2006 . http://www.47news.jp/CN/200601/CN2006011301003554.html . 2011-06-07 . Japanese .
  23. Web site: ja:当社のインサイダー取引未然防止の改善策につい . Gala Inc . http://www.gala.jp/pdf/pr_20060116.pdf . January 16, 2006 . 2011-06-01 . Japanese.