Krafton, the South Korean studio behind PUBG: Battlegrounds, reported record-breaking 2024 earnings of 2.71 trillion KRW ($2.08 billion USD) and 908 million USD) in operating profit—a 42% and 54% year-over-year increase, respectively. The results, announced during a February 11 investor briefing, cap five years of 20% average annual growth, fueled by PUBG’s free-to-play transition and mobile dominance in India.
2024 Breakdown
- PC/Console: PUBG: Battlegrounds hit 890,000 peak concurrent players, driving nearly $770 million in sales. Collaborations (e.g., Street Fighter, Resident Evil) boosted engagement.
- Mobile: Battlegrounds Mobile India (BGMI) achieved its highest-ever revenue, contributing to a 35.7% YoY mobile sales jump.
- Profit Margins: Operating profit surged to 44% (vs. 40% in 2023), reflecting cost discipline amid expansion.
2025 Strategy: Big Franchise IP & AI
Krafton aims to double its corporate value by 2030, targeting 7 trillion KRW ($5.4B USD) in revenue through:
- PUBG Expansion: New maps, modes, and spin-offs (Project BlackBudget, The Next Subnautica).
- Diversification: Releases like inZOI (life sim), Dark and Darker Mobile (extraction RPG), and Dinkum Together (farming co-op).
- AI Investments: Leveraging partnerships with NVIDIA and OpenAI to refine “Co-Playable Character” tech for dynamic NPCs.
- India Focus: Scaling BGMI updates and exploring non-gaming ventures (e.g., multimedia, webtoons).
Context for Investors
Krafton’s reliance on PUBG (~80% of revenue) remains a risk, but its mobile success in India—a market with 500 million gamers—offsets stagnation in China. The studio’s AI push aligns with industry trends (EA’s AI NPCs, Ubisoft NEO NPCs), though skeptics question scalability beyond gimmicks.
CEO CH Kim emphasized balancing legacy IP with new franchises: “We’ll evolve beyond game development into a global entertainment ecosystem.”
Further reading: Krafton Q4 Investor Presentation
Related:
