Krafton Reports Record Revenue and Bets Big on AI-Driven Future
South Korean publisher Krafton has announced record-high annual revenue, driven by the continued success of its PUBG franchise. The company’s fiscal report for the year ended December 31, 2025, reveals a 22.8 percent year-over-year increase in revenue, reaching KRW 3.3 trillion ($2.26 billion). Operating profit totaled KRW 1.05 trillion ($720.4 million) over the same period.
Financial Breakdown
A closer look at the revenue breakdown by business segment shows:
- PC: KRW 1.2 trillion
- Mobile: KRW 1.7 trillion
- Console: KRW 42.8 billion
- Others: KRW 358.5 billion
PUBG and New Franchise Success
PUBG: Battlegrounds achieved its highest annual revenue on PC, with a 16 percent year-over-year growth. New releases inZOI and Mimesis also contributed significantly, each surpassing 1 million sales since their launches in March and October 2025, respectively. PUBG Mobile continued to expand its fanbase through new themed modes and updates, bolstered by cross-platform collaborations with the PC and console versions.
Krafton highlighted that these collaborations created a “virtuous cycle” across the PUBG IP franchise, generating long-term growth momentum.
Strategic Expansion and Acquisitions
Looking ahead, Krafton plans to aggressively expand its portfolio through both organic development and strategic acquisitions. The company will explore large-scale M&A opportunities to secure immediate financial gains, alongside smaller to mid-scale acquisitions to identify IPs with high growth potential. They are also pursuing strategic equity investments and second-party publishing deals.
A Pipeline of New Games
Krafton is currently developing 15 new projects, supported by newly recruited creative leadership and specialized teams. Titles like Subnautica 2, Palworld Mobile, Dinkum Together, and NO LAW are gearing up for launch, diversifying the company’s IP lineup across various genres and platforms.
Evolving PUBG and the Power of AI
The company intends to evolve PUBG into a “gameplay platform” by upgrading to Unreal Engine 5 and expanding support for user-generated content (UGC). However, a key focus for Krafton is “future-facing AI innovation,” aiming to deliver new gameplay experiences powered by AI and automation across production and live service operations.
Krafton has already debuted generative AI companions designed to exhibit “human-like” behavior. The company envisions leveraging in-game data as “high-quality training data” for potential ventures into “Humanoid Robotics,” outlining a “long-shot approach” to AI technology.
AI as a Key Driver
Krafton views AI as a “key driver” for future innovation and value expansion. While some developers express concerns about the impact of generative AI, Krafton is embracing it as a core component of its future strategy. You can find more information on the Game Developer website.
Source: Game Developer
