By Sagar V. Mankar Krafton, Korea’s leading game company known for PlayerUnknown’s Battlegrounds (PUBG), reported impressive financial results for the third quarter, exceeding market predictions.
The company recorded a remarkable 59.7% increase in sales, reaching 719.3 billion won ($516 million) between July and September. This figure was 27% higher than market expectations, marking a record-breaking quarter for the Seoul-based game publisher.
Operating profit rose significantly by 71.4% to 324.4 billion won, outperforming the estimated 254.2 billion won.
Despite these gains, net profit fell by 42.6% to 121.4 billion won due to nonoperating losses primarily linked to foreign exchange rates.
PUBG’s Continued Dominance
Bae Dong-keun, Krafton’s Chief Financial Officer, attributed the outstanding performance to the continued popularity of Battlegrounds, which bolstered both sales and operating profit.
The PC and console versions of the game experienced their highest quarterly traffic and revenue since the title adopted a free-to-play model in 2021.
This success was fueled by a July collaboration with luxury car brand Lamborghini and a significant September update that introduced the “Hungers Left Behind” game mode and enhancements to the Taego map, pushing peak concurrent player counts to 890,000.
Mobile versions also showed strong performance, with themed game modes and strategic improvements in monetization contributing to higher sales. Specifically, PC game sales surged to 274.3 billion won, up 126.1% year-on-year, while mobile game sales reached 425.4 billion won, a 37.6% increase compared to the same period last year.
Strategic Expansion and Diversification
In an effort to diversify its game portfolio and lessen reliance on the Battlegrounds franchise, Krafton is expanding investments in external projects, licensing deals, and third-party publishing.
The company’s “Scale-Up the Creative” initiative aims to foster global growth through new intellectual properties (IPs) across various platforms and genres.
This strategy has led to partnerships with Japan’s Pocket Pair to develop Palworld Mobile and investments in Canadian game studio Wolfhouse Games.
Krafton is also collaborating with Day4Night, known for creators of titles like Mario + Rabbids, to develop new projects.
By the end of the third quarter, Krafton had made 13 cumulative investments for the year, up from 11 in 2023 and 5 in 2022.
India Market Focus
Krafton’s commitment to India remains strong, where Battlegrounds Mobile India (BGMI) has gained significant traction.
The company is enhancing localization efforts through partnerships with Bollywood celebrities and local artists, along with multi-language support and major esports events.
Plans are underway to release a localized version of Cookie Run in collaboration with DevSisters and introduce an Indian edition of Archery King, which recently appeared on the Google Play Store.
AI Integration
Investments in AI have been another key focus, surpassing 100 billion won from 2021 to the third quarter of this year.
The company aims to create AI-driven characters capable of interacting with players in a more human-like manner. This includes the CPC (Co-Playable Character) technology, which differs from traditional NPCs by engaging in gameplay and adapting to user interactions.
Additionally, Krafton’s inZOI game has already implemented innovative features like 3D printing, with plans to incorporate chatbot and motion generation technology.
Future Gaming Pipeline
Krafton is also developing new titles, including inZOI, Dark and Darker Mobile, Subnautica 2, Project ARC, and Dinkum Together.
Games like inZOI and Dark and Darker Mobile have already attracted attention following their previews at Gamescom in August.
Meanwhile, Project ARC and Dinkum Together are set to debut at G-Star, a prominent gaming event in Korea.
Year-to-Date Performance
Krafton’s cumulative sales for the first nine months of the year reached 2.09 trillion won, already outpacing last year’s total sales of 1.9 trillion won.
Operating profit over the same period was 967 billion won, also surpassing last year’s full-year profit of 768 billion won.
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