Krafton Sets Its Sights on Creating a Major Franchise IP Following Impressive Annual Earnings
By PUBG developer Krafton reported remarkable revenues and operating profit for the previous fiscal year.
As detailed in its annual report for the year concluded December 31, 2024, total annual revenue surged by 41.8 percent year-over-year to KRW 2.7 trillion ($1.85 billion). Operating profit climbed by 54 percent year-over-year to KRW 1.2 trillion ($825.7 million).
The South Korean company indicated that both figures represent all-time highs and were propelled by the “sustained growth and longevity of the PUBG intellectual property.”
Examining the success of its flagship franchise, Krafton noted that PUBG achieved its highest revenue performance on PC since 2018, while Battlegrounds Mobile India also generated record traffic and revenue.
Krafton affirmed its commitment to making “bold investments” in the franchise to ensure its success as an enduring, multi-platform series.
Currently, the company is developing four new PUBG projects, including an extraction shooter, a tactical shooter, a console-centered battle royale, and a hybrid casual project with reduced violence aimed at targeting the “next generation” of gamers—specifically children aged 12 and older.
The company stated that these in-development entries within the PUBG universe will focus on “core gameplay validation and team building with a long-term vision.”
As mentioned by Krafton CEO CH Kim earlier this year, the company also believes it can utilize AI technology to advance the franchise.
“While we continue to grow the PUBG IP, we will expedite the creation of a new franchise IP to further enhance our competitive advantage in the global gaming market,” Kim explained during the company’s latest financial report.
“With our AI technology shaping the future of gaming experiences, we aim to evolve game development strategies as a company that ultimately enhances the global entertainment ecosystem.”
Krafton pursuing to establish another major IP after PUBG proves its value
Outlining its strategy for 2025, Krafton pledged to make “aggressive” investments in its production capabilities to secure a “major franchise IP.”
In a revenue presentation, Krafton indicated it will invest in personnel, outsourcing, staffing, management teams, and various “specialized” sectors.
Last year, the company bolstered its production capabilities with the acquisition of HI-FI Rush developer Tango Gameworks—which was facing closure under previous owner Microsoft.
With further investments on the horizon, Krafton anticipates development costs will rise by KRW 300 billion ($206 million) annually over the next five years. It will also endeavor to release additional titles during that period.
Krafton believes its mission to create a significant franchise represents an “all-out challenge” that can only be achieved by “discovering new possibilities in gaming through innovation.”
The company already has a lineup of titles in development that it believes may fulfill this promise, including a life simulation title Inzoi, mobile extraction RPG Dark and Darker, survival adventure Subnautica 2, and frontier life simulation Dinkum Together.
Having solidified its vision for the next five years, Krafton has set a goal of achieving KRW 7 trillion ($4.8 billion) in annual revenue by 2030.
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