Gumi tries to break the Japanese gaming curse, opens up shop in Canada

CEO Hironao Kunimitsu at Startup Asia Singapore 2014

Gumi keeps on rolling following its resurrection from the game developer scrap heap. After teasing that its imminent IPO could hit upwards of US$300 million in value and securing a cool US$10 million and critical partnership from Line, Gumi is now making good on its promise to make a stir in North America with the opening of a subsidiary in Vancouver, British Columbia.

The aptly-named Gumi Canada will need to solve a puzzle that has plagued Japanese game developers for years – how to make first party mobile games for North American
customers. At their peaks, both Gree and DeNA gave foreign expansion a try only, to be met with disinterest from gamers and disappointment from investors. The companies have improved their prospects a bit but success stories like DeNA’s Rage of Bahamut remain few and far between.

By stepping foot into Canada, Gumi continues to step out onto a high-wire act that will likely have an outsized impact on its future IPO valuation. A Japanese firm with a proven history of making hit games internationally could become the giant that replaces Nintendo. But a developer that can’t create games for non-Japanese users is just another big fish in a small Japanese pond. Following a partnership agreement with Sega that strengthens its position in the United States, Gumi is showing a lot of confidence in its international portfolio.

In Canada, that confidence stems in part from its star hires – Chris Rowe, who is known for his work as a senior producer on Devil May Cry during his Capcom days, and AJ Redmer, a co-creator of the Xbox 360. Rowe is now executive producer for Gumi Canada and Redmer is settled in as vice president of Western studios for Gumi, Inc.

Attracting fans won’t be easy but the team at least has the Canadian government cheering them on. The ministers for international trade of both Canada and British Colombia spoke out in support of Gumi finding a new home in Vancouver. Whether this a sign of Gumi’s strength or of Canadian politeness is unclear.

Regardless, when you are trying to capture a market that your peers have made little to no headway in, it’s good to know you have nice neighbors.

See: Mobile game developer Gumi raises $19 million, partners with Fuji Media