Krafton Reports Record Q3 Sales, Driven by PUBG Success and AI Investments

Krafton's January-September sales top $1.44 bil., setting new yearly high in Q3

Krafton's booth at Gamescom in Germany, Aug. 22 / Yonhap By Nam Hyun-woo PUBG: Battlegrounds developer Krafton said Thursday its accumulated revenue from January to September this year has surpassed 2 trillion won ($1.44 billion), after the company posted record-high quarterly sales for the third quarter. During an earnings call, the game studio reported 719.3 billion won in sales and an operating profit of 324.4 billion won in a consolidated basis for the third quarter. It was the highest quarterly sales in the company's history, and the figures represent 59.7 percent and 71.4 percent year-on-year increases, respectively. With the third-quarter revenue, the company has already set a new record in its annual sales, as the accumulated revenue up to September reached 2.09 trillion won, surpassing the 2 trillion won mark for the first time in its history. The cumulative operating profit up to September also set a new high with 967 billion won. "Various services based on the intellectual property (IP) of PUBG: Battlegrounds are showing remarkable growth in all areas, including sales and traffic," Krafton's Chief Financial Officer Bae Dong-keun said. "Also, our own artificial intelligence (AI) technology has reached its implementation stage to empower various pipeline services including inZOI." InZOI is an upcoming life simulation game using generative AI functions. Krafton attributed the growth to the stable growth of PUBG's IP. In the third quarter, the hit title's global traffic and profitability improved further through map updates, new mode introductions and various collaborations. For PC and console versions of PUBG, a collaboration with the Lamborghini brand in July achieved record-high sales. New map and mode updates in September resulted in 890,000 peak concurrent users, which was a new traffic record after PUBG became a free-to-play game. On the mobile platform, sales performance continues to improve through new themed modes and efficient business model management, the company said. To discover new IP, the company said it made a total of five investments in the third quarter, including equity investments in game developers and licensing deals. Of them, the company acquired the IP license for Palworld, a 2024 title which has gained global popularity. Currently, PUBG Studios is developing a mobile version of Palworld. The company noted that the traffic for Battlegrounds Mobile India is showing a stable sales trajectory, with an influx of new users and new localized content. The company is preparing several new titles, including inZOI, Dark and Darker Mobile, Subnautica 2, Project ARC and Dinkum Together. InZOI and Dark and Darker Mobile are already drawing keen attention among global games, after the company offered glimpses of those titles at Gamescom in August.

Krafton posts record Q3 with surging 'PUBG' demand, AI investments

ANN/THE KOREA HERALD - Krafton, the South Korean gaming giant behind PUBG: Battlegrounds, posted record-breaking results for the third quarter (Q3) of 2024, driven by high demand for its flagship game and increased investments in artificial intelligence (AI). The company reported Q3 revenue of KRW719.3 billion (USD516.18 million) and an operating profit of KRW324.4 billion, marking year-over-year growth of 59.7 per cent and 71.4 per cent, respectively. This brings Krafton's total revenue for the first Q3 to a record KRW2.092 trillion. PUBG continued to attract players with new updates and features, including a July collaboration with Lamborghini that led to the highest single-item sales in the game's history. Other updates, such as the Hungers Left Behind game mode and enhancements to the Taego map, helped push the game's peak concurrent players to 890,000, the highest since the game's transition to a free-to-play model. On mobile, Krafton saw strong sales driven by themed game modes and improvements to its monetisation approach. Krafton is actively working to diversify its line-up with new games across a range of genres and platforms. Upcoming titles include inZOI, Dark and Darker Mobile, Subnautica 2, Project ARC, and Dinkum Together. Project ARC and Dinkum Together will be shown for the first time at G-Star, a major upcoming industry event in Korea. The Krafton title Battlegrounds Mobile India continues to gain traction in the Indian market. To attract more users, the company has localised the game with support for regional languages and has hosted large-scale esports tournaments in the country. Krafton also plans to launch a localised version of the popular game Cookie Run in India, developed in partnership with DevSisters, set for release by the end of the year. Krafton has invested heavily in AI. The company has now begun implementing these AI tools in its games. For example, inZOI features an AI-powered '3D printer' function that allows players to customise in-game assets. Krafton is also developing a new type of interactive character, called a 'Co-Playable Character', that can respond to players in real time more dynamically, and in a more human-like way, than traditional NPCs. Krafton plans to introduce this technology in PUBG and inZOI as part of its broader AI strategy.