PUBG has evolved from a single hit game into a long-running revenue platform
The company is preparing for a post-PUBG future with new titles and AI investments
Kim Chang-han, CEO of Krafton
[Insight Korea = Shin Kwang-ryeol]
Krafton, led by Chief Executive Kim Chang-han, has become the first Korean game company to surpass 1 trillion won in quarterly revenue. Its intellectual property strategy centered on “PUBG: BATTLEGROUNDS” has settled into a long-term hit structure, while emerging-market growth and strong live-service operations have helped lift the company’s earnings profile to a new level.
According to Korea’s electronic disclosure system on May 4, Krafton reported consolidated revenue of 1.3714 trillion won and operating profit of 561.6 billion won for the first quarter of 2026. The figures were up 56.9 percent and 22.8 percent, respectively, from a year earlier. It was the first time a listed Korean game company had generated more than 1 trillion won in quarterly revenue.
By business segment, mobile revenue accounted for the largest share at 702.7 billion won, followed by PC revenue at 363.9 billion won. Console revenue stood at 13.8 billion won, while other revenue reached 291 billion won.
PUBG Becomes a Revenue Platform Beyond a Single Game
The main driver of the quarter was the “PUBG: BATTLEGROUNDS” IP. Revenue from the franchise rose 24 percent from a year earlier and exceeded 1 trillion won in a single quarter on an IP basis. The significance lies in the fact that PUBG is no longer merely a single game. The IP itself has become a “revenue platform” capable of generating stable sales over a long period.
That outcome reflects the IP operation strategy built by Mr. Kim. He expanded PUBG beyond the PC platform into mobile and esports, diversifying the revenue structure. The mobile version rapidly broadened its user base in global markets and expanded the company’s sales foundation. PUBG’s global esports league has also helped sustain user interest and strengthen fan loyalty through continuous tournament operations.
Krafton also improved profitability through active brand collaborations. It brought various game, entertainment and media IPs and brands into PUBG in the form of skins and event content, increasing user participation. Collaborations with premium car brands such as Aston Martin and Apollo were especially effective in stimulating demand among high-spending users and contributing to revenue growth. Such collaboration content has become a recurring revenue structure through re-releases and modified sales.
In mobile, the Indian market drove growth. “Battlegrounds Mobile India,” or BGMI, saw an increase in paying users thanks to server expansion and a broader supply of content. Its esports league also posted strong viewership indicators, expanding the franchise’s local influence.
Analysts say Krafton’s strategy of reducing reliance on China and turning India into a core market has been effective. While China’s market is heavily affected by game license regulations and broader policy changes in the gaming industry, India’s user base is expanding rapidly and its spending power is gradually growing, giving it stronger medium- to long-term growth potential.
Krafton’s ability to secure stable cash flow from a long-running IP is considered one of its greatest strengths. During a conference call on April 30, Mr. Kim said, “Krafton is pursuing a five-year growth strategy centered on securing franchise IPs, with the long-term growth of PUBG IP and the acquisition of new IPs as key tasks.”
“The first quarter was the point at which this strategy was confirmed through results,” he said.
New Titles and AI as the Next Growth Pillars
Despite the strong results, Krafton still faces the challenge of having a revenue structure concentrated in a specific IP. The stable sales base built around PUBG is a clear strength, but the higher the dependence on a single IP, the greater the potential volatility in earnings if its popularity changes.
Krafton is therefore widening its reach into new game development and emerging areas such as physical AI as it seeks to diversify its growth engines. For “inZOI,” the life simulation game released last year, the company is pursuing an expansion strategy aimed at developing it into a long-running IP. Through additional updates, more advanced content and expansion into console platforms, Krafton plans to broaden the user base. It also aims to turn the title into a platform-style game by combining user-generated creation tools with multiplayer elements.
The open-world survival game “Subnautica 2” is also scheduled for early access release on May 15. With new elements such as cooperative play, the title is designed to appeal to both existing fans and new users.
AI technology is another emerging variable. Krafton is expanding its business based on AI capabilities accumulated through game development, and has recently moved into physical AI fields such as autonomous driving.
To that end, Krafton is working with mobility platform company SOCAR to participate in the establishment of a dedicated autonomous-driving service company. Krafton plans to invest about 65 billion won and combine SOCAR’s vehicle operation and data capabilities with its own AI technology to improve the chances of commercializing the service. The partnership is seen as significant because it goes beyond a simple investment and marks Krafton’s first attempt to expand from game-centered AI into real-world industries.
“This is meaningful because it is an attempt to expand AI technology accumulated in games into actual industrial fields,” one industry official said. “In particular, mobility data secured through autonomous-driving services could become a key asset for improving AI performance in the future.”
-This article was translated by ChatGPT. (이 기사는 챗GPT가 번역했습니다.)
댓글
0