XL Games is transferring the ArcheAge intellectual property (IP) and the development business for ArcheAge S to Align Studio. As the ArcheAge Chronicles development project was not included among the assets transferred in this deal, XL Games is expected to continue developing it.
On September 9, XL Games submitted a corrected filing via the Financial Supervisory Service's Electronic Disclosure System (DART) for the "Report on Important Matters (Decision on Business Transfer)" submitted the previous day. The terms of the transaction remained unchanged. An appendix to the agreement had been omitted during the previous day's filing, and the corrected filing supplemented this by disclosing detailed transfer targets. The stated reason on the corrected filing was noted as "supplementation due to omitted appendix."
The total transfer amount disclosed on September 8 is 39,221,943,293 won. XL Games decided to transfer all intellectual property embodied in the ArcheAge game and its sequels, the ArcheAge S development project, as well as related assets, contracts, personnel, and liabilities. The company stated that the purpose of the transfer is to secure liquidity and improve its financial structure, with the contract signed on September 8 and the transfer date set for October 27.
The appendix added on September 9 revealed the transaction details in greater depth. The deal is broadly categorized into the "ArcheAge S Development Business" and the "ArcheAge Intellectual Property," listed at 28.896 billion won and 9.867 billion won, respectively. Combined, the two items total 38.763 billion won. In addition, the appendix detailed the assets, liabilities, and major contracts subject to transfer.
The specific scope of the ArcheAge IP was also confirmed. Domestic and international trademark rights, copyrights, domains, and various other rights related to ArcheAge were included in the transfer. For ArcheAge S, not only is the IP being transferred, but the development business itself is the subject of the transaction. This is why related assets, contracts, personnel, and liabilities are being transferred together.
A notable point in this corrected disclosure is that the development business for ArcheAge Chronicles was not specified as an asset to be transferred. The project specifically designated as a development business transaction in the agreement is ArcheAge S. The amounts listed in the appendix are likewise divided between the ArcheAge S development business and the ArcheAge intellectual property, with the ArcheAge Chronicles development business not appearing as a separate item.
Therefore, based on the currently disclosed contract, the ArcheAge S development business moves to Align Studio, while the ArcheAge Chronicles development project remains with XL Games. Under previously known business plans, XL Games is also reported to continue developing ArcheAge Chronicles and self-publish the game.
Here, a distinction must be made between the development project and IP rights. The original ArcheAge IP itself is subject to this transaction, and the newly disclosed list of trademarks includes trademarks related to "ArcheAge Chronicles." In other words, the fact that the Chronicles development project remains with XL Games does not mean that all related rights remain with XL Games as well. Conversely, the transfer of those trademarks alone does not mean that the Chronicles development project itself moves to Align Studio.
The disclosure did not specify through what legal or contractual framework XL Games will develop and service Chronicles after the transfer of the original IP. What can be confirmed at present is only that while the ArcheAge IP was included in the transaction, the Chronicles development business was not listed as a separate transfer target.
Align Studio, which is acquiring the ArcheAge IP and ArcheAge S, is known to be a newly established game developer funded by Kakao Games. It is reported to be headed by Producer Kim Kyung-tae, who oversaw the development of ArcheAge S at XL Games. Producer Kim previously served as the lead designer and producer on the original ArcheAge, and was introduced as the project director when ArcheAge S was first unveiled last August.
ArcheAge S was originally structured with XL Games handling development and Kakao Games taking charge of global publishing. With this transaction, the development business and related staff will move to Align Studio, shifting the primary developer. The existing development and publishing agreement between XL Games and Kakao Games is also reported to have been transitioned to an agreement between Align Studio and Kakao Games.
Ultimately, what was newly confirmed through this corrected filing is the specific scope of the transfer rather than the 39.2 billion won transaction itself. The business is divided such that the ArcheAge IP and the ArcheAge S development business move to Kakao Games-funded Align Studio, while XL Games continues developing ArcheAge Chronicles. However, how Chronicles will utilize the ArcheAge IP after ownership of the IP is transferred has not yet been disclosed.
