Krafton Expands Ambitions: Building a Major Franchise Through Strategic Growth and Publishing Initiatives
Image by job of Tango Gameworks/Hi-Fi Flee.
PUBG developer Krafton has presented its strategic vision for the next five years, with a primary goal of acquiring a “major franchise IP.”
During a recent company-wide meeting, CEO CH Kim shared his ambition to transform its intellectual properties into long-term franchises “with significant potential for sustained success…building on the achievements of PUBG: Battlegrounds.” The popular battle royale game has proven to be a key revenue generator for Krafton, which includes two spin-offs: an adaptation for PUBG India, and the mobile game Novel Express Mobile, available globally on iOS and Android devices.
Part of Krafton’s strategy involves its in-house teams, which include Striking Distance Studios, Unknown Worlds, and the recently revived Tango Gameworks. Krafton plans to “increase investment” in these 14 studios to enhance “development pipelines, attract top talent, and further refine development skills.”
Additionally, the company is seeking to “evolve” its studio management system. To achieve “sustainable growth,” it aims to “effectively allocate resources” across all stages of game development “to maximize the potential of its most competitive intellectual properties.”
Ultimately, Krafton seeks to “actively expand its user base and revenue” through diversification. Kim mentioned second-party publishing and licensing, including its partnership with Pocketpair to create a mobile version of Palworld.
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At the meeting, Kim stated that this three-part strategy is designed to “drive exponential growth in [our] corporate value.”
In 2024, Krafton made substantial investments in new studios such as Red Rover and Eschatology Entertainment, along with the non-gaming video platform Spoon Labs. Kim’s strategy does not clarify how these elements fit into the corporation’s mid or long-term plans, including potential acquisitions. Furthermore, he did not mention machine learning or the application of generative AI in the company’s titles, which he expressed interest in last year.
About the Author
Contributing Editor, GameDeveloper.com
A native of Kansas City, MO, Justin Carter has contributed to numerous websites including IGN, Polygon, and SyFy Wire. In addition to Game Developer, his work can also be found at io9 over on Gizmodo. Don’t ask him about how much gum he’s had, as the answer may exceed what he’s willing to admit.