Overview of Krafton’s 2025 Strategic Direction
- Krafton is focusing on enhancing first-party production to acquire new franchise intellectual properties (IPs).
- The company will implement “Second Party Publishing and Licensing”strategies to expand its user base.
- A goal has been set to establish a new flagship franchise IP that builds upon the success of PUBG.
South Korean gaming powerhouse Krafton Inc. has unveiled an ambitious business framework for 2025, detailing plans related to management, resource allocation, intellectual property acquisition, and in-house game development. As the parent company of PUBG: Battlegrounds, a leading battle royale title produced by its subsidiary, PUBG Studios, Krafton is strategically positioned in the gaming landscape.
With a market valuation exceeding $10 billion USD, Krafton has made notable acquisitions and investments since its establishment in 2018. The company has been instrumental in the development and launch of various titles such as The Callisto Protocol, New State Mobile, and Moonbreaker. Recently, Krafton acquired the defunct Tango Gameworks, previously owned by Microsoft, along with rights to any upcoming games in the Hi-Fi Rush franchise.
Krafton’s Strategic Focus on Franchise Growth
During a recent town hall meeting on January 16, 2025, Krafton executives emphasized the importance of expanding first-party production as a means to secure new franchise IPs. The company plans to boost investment in its 14 creative studios, aiming to not only increase the volume of new releases but also attract top-tier industry talent. In conjunction with this initiative, Krafton is set to adopt “Second Party Publishing and Licensing”strategies, which will facilitate user base growth for both new releases and established IPs, including the highly anticipated Subnautica 2 from Unknown Worlds.
In light of its aspirations for sustainable growth, Krafton intends to overhaul its management practices to enhance efficiency across all phases of game development. CEO Kim Chang-han stated, “Our new titles will officially launch starting this year. We are fully committed to securing a new ‘Big Franchise IP’ that will build on the success of PUBG: BATTLEGROUNDS.”
With the announcement of Krafton’s realistic life simulator, inZOI, at Gamescom 2024, and the development of mobile adaptations for titles like Dark and Darker and Palworld through recent partnerships, the company appears poised for substantial expansion in multiple gaming arenas. This strategic diversification is vital, especially considering the contraction of the gaming industry observed in 2023-2024, as it serves as a buffer against market volatility.
Despite facing mixed reviews for The Callisto Protocol, Krafton is positioned to continue its trajectory of market value growth. The company’s significant investments in various new studios and its ventures beyond traditional gaming underscore its resilience and adaptability. While the emerging flagship IP remains to be seen, Krafton’s history of engaging projects suggests that it will likely be celebrated upon its debut.
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