KRAFTON Inc. – A Gaming Industry Leader

KRAFTON Inc., a South Korean powerhouse in the global gaming industry, is renowned for developing and publishing hit games like PUBG and PUBG Mobile, which have played a significant role in shaping the modern battle royale genre. The company’s continued dominance is not only attributed to its popular titles but also to its strategic expansion, technological investments, and efforts to cater to a diverse global player base. In Q2 2024, KRAFTON once again showcased its strong market presence with record-breaking financial performance, solidifying its place among the top players in the industry.

Analyzing the quarterly report for Q2 2024 offers deep insights into KRAFTON’s ongoing growth trajectory and strategic decisions, which are critical to understanding how the company plans to maintain and expand its market share. The Q2 report highlights impressive revenue growth, driven by strong performances from its core games, particularly PUBG, and substantial investments in new intellectual properties (IPs), technological advancements, and geographic expansion. This financial review gives stakeholders and investors a clearer picture of the company’s resilience in a competitive market and provides a forecast of its future direction.

Revenue Breakdown

In Q2 2024, KRAFTON Inc. achieved remarkable financial growth, with revenue reaching ₩707 billion ($515.7 million), reflecting an 82.7% increase compared to the same period in 2023. The company’s impressive performance was driven primarily by its flagship titles like PUBG: Battlegrounds and PUBG Mobile, as well as new partnerships and strategic expansions across key markets​.

Breakdown by Game Titles

PUBG: Battlegrounds continued to be a major revenue driver. The game experienced a 40% growth in monthly active users (MAU), while paying users surged by 130% year-over-year, thanks to the return of classic maps like Erangel and collaborations with global icons such as K-pop group NewJeans.

PUBG Mobile also performed well, with MAU increasing by 30% and paying users growing by 40% compared to Q2 2023. This boost was largely attributed to in-game updates like the X-Suit skin and special collaborations​.

New game launches are also contributing to future revenue streams. Dark and Darker Mobile is set for beta testing in Q3 2024, with a full launch expected by the end of the year. KRAFTON is also diversifying into new genres, including life simulation with its upcoming title inZOI, scheduled for Early Access on Steam​.

Geographic Revenue Breakdown

• The APAC region, particularly South Korea, remained the dominant market for KRAFTON’s revenue, driven by the popularity of PUBG and PUBG Mobile.
• In India, KRAFTON’s aggressive expansion included the launch of six new games and the establishment of an R&D facility, positioning the country as a key growth market​.
• The North American and European markets also showed positive momentum, driven by strong player engagement and strategic partnerships​.

Key Revenue Drivers and Collaborations

Mobile gaming continued to be KRAFTON’s largest revenue source, growing by 104.2% YoY and contributing ₩499.9 billion ($364.6 million) in Q2 2024. The company’s mobile success was bolstered by collaborations and in-game events, including partnerships with global celebrities like Myriam Fares​.

The PC platform also performed well, generating ₩191.3 billion ($139.5 million), a 63.5% increase YoY, reflecting continued player engagement and monetization improvements.

Console revenue declined by 53.9%, signaling a shift in the company’s focus toward mobile and PC platforms​.

KRAFTON’s focus on expanding its PUBG franchise to new platforms and genres, along with strategic acquisitions, is expected to further drive growth, with a goal to elevate the franchise’s annual value to $10 billion​.

Entry into New Markets

KRAFTON has actively pursued expansion into emerging regions, with a strong focus on markets like India and Japan. In India, KRAFTON is launching six new games, signaling a deeper commitment to growing its presence in one of the world’s largest mobile gaming markets. The company has also established a research and development facility in the country, further anchoring its strategic investment there​.

In Japan, KRAFTON’s acquisition of Tango Gameworks, the developer behind the critically acclaimed game Hi-Fi Rush, is an essential part of its broader global expansion. This acquisition not only strengthens its presence in the Japanese gaming market but also prevents the closure of the studio, showcasing KRAFTON’s commitment to growth through mergers and acquisitions​.

Diversification of Product Offerings

KRAFTON is actively diversifying beyond its core PUBG franchise by exploring new genres and platforms. Two significant upcoming releases include:

• Dark and Darker Mobile, an extraction RPG, is set to enter beta testing in Q3 2024, with a full release planned by the end of the year.

• inZOI, a life simulator, will enter Early Access on Steam later in 2024. These new titles showcase KRAFTON’s strategic shift towards expanding its product portfolio beyond battle royale games​.

The company is also leveraging AI technology and genAI to enhance gameplay experiences. Upcoming titles such as Magical Mic Duel and Uncover the Smoking Gun are designed to incorporate AI-driven emergent gameplay, a cutting-edge move that aligns with the industry’s growing focus on immersive and adaptive gaming​.

KRAFTON continues to invest in expanding its intellectual property (IP) portfolio. In the first half of 2024, it completed 11 acquisitions, part of a broader strategy to build new franchises and invest in first-party production. This aggressive expansion underscores the company’s commitment to becoming a leader across multiple gaming genres and platforms​.

Summary

KRAFTON’s Q2 2024 report highlights a record-breaking quarter with revenue reaching ₩707 billion ($515.7 million), an impressive 82.7% growth year-over-year. The PUBG franchise remains the driving force behind this success, with significant growth in both mobile and PC segments​.

Strategic expansions into markets like India and Japan, coupled with the acquisition of Tango Gameworks, demonstrate KRAFTON’s commitment to diversifying its product portfolio. New game releases and technological investments, such as AI-driven gameplay, are expected to fuel further growth​.

With a 165.7% increase in net profit, KRAFTON is financially strong, and investors can expect continued expansion. Players and the gaming community can look forward to new releases and innovations as KRAFTON strengthens its position in the global gaming market. You can explore KRAFTON’s report in more detail here.