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Beyond PUBG: Krafton Dreams of Ascending the World Stage

Step into the highest floor of Krafton’s headquarters, a sleek glass-and-steel building in Seoul’s upscale Gangnam neighborhood, and you’ll be greeted by a massive curved screen. On a cloudy November morning, the screen showcases Krafton’s latest collaborations, including a partnership with K-pop sensation Blackpink for an in-game concert. However, what truly defines this South Korean gaming behemoth lies beyond the screen.

A row of prestigious awards and trophies, including seven Guinness World Record plaques, dominates the display. All of these accolades belong to Krafton’s most famous game to date, PlayerUnknown’s Battlegrounds (PUBG), a popular battle royale title. After achieving tremendous success on PC, Krafton ventured into the mobile gaming market with PUBG Mobile, a free-to-play spinoff developed in collaboration with Chinese tech giant Tencent. PUBG Mobile quickly became the most popular mobile game in India until it was controversially banned in 2020. At the time of its ban, India accounted for nearly a quarter of PUBG Mobile’s global downloads.

The PUBG and BGMI Saga

The Indian government justified the ban by citing national security and privacy concerns. PUBG Mobile was included in a list of 118 apps that allegedly posed a threat to India’s sovereignty, defense, and public order. Many media outlets, including CNN, CNBC, and the Financial Times, highlighted the ban’s timing, which coincided with Chinese incursions in the Ladakh border region.

While China accused India of discriminatory measures against Chinese companies, Krafton, a South Korean firm, found itself caught in the crossfire. After being ousted from its largest market, Krafton devised a plan for a comeback. The company regained publishing rights from Tencent and launched Battlegrounds Mobile India in mid-2021. Marketed as an “Indian-themed” version of PUBG Mobile, BGMI featured India-only servers and alterations such as green-colored blood and the removal of “kills.” Ironically, BGMI was predominantly based on the Chinese version of PUBG. This irony did not go unnoticed.

The comeback strategy proved successful, with Krafton claiming 100 million registered users for Battlegrounds Mobile India within a year of its launch. However, the game faced yet another setback when it was removed from both Apple’s App Store and Google’s Play Store following another ban imposed by the Indian government. In response, Krafton India CEO Sean Hyunil Sohn stated that the company had always complied with Indian data protection laws and regulations.

During our visit to Krafton’s headquarters in Seoul, Sohn elaborated on the challenges faced by video game companies in India. He highlighted the absence of official age ratings and data security guidelines for gaming apps in the country. Sohn expressed hope that clearer guidelines would be established in the coming year, but uncertainties remained regarding the coverage of data security issues.

Krafton: From Developer to Publisher

While Krafton is widely recognized as the company behind PUBG, it envisions a broader future for itself, taking inspiration from industry giants like EA, Tencent, and Blizzard. Until 2021, Krafton solely functioned as a game developer. However, it now aims to become a publisher for smaller studios.

In late September, Krafton released Moonbreaker, a turn-based strategy game developed by the creators of Subnautica, which Krafton had acquired. Shortly after our visit to Krafton’s HQ, survival horror game The Callisto Protocol, directed by Dead Space co-creator Glen Schofield, was launched across various platforms.

At G-Star 2022, South Korea’s premier gaming convention, Krafton stood out as the only Korean studio with an international portfolio. The company’s Vice President and Global Publishing Chief, Rafael Lim, promised that Krafton would deliver more than two titles in 2023. One such title, Defense Derby, is a free-to-play mobile strategy game developed by Korean studio Rising Wings. Additionally, Krafton is working on an AAA open-world third-person shooter with Neon Giant, a Swedish developer known for the game The Ascent.

Expanding Beyond Gaming

Krafton is not limiting itself to the gaming industry alone. In June, the company introduced Ana, a virtual human created using Unreal Engine 5 and powered by AI and deep learning. Ana is presented as an artist, model, actor, and social influencer. Krafton designed Ana’s face by drawing on computer models based on a mix of real people, with a notable predominance of female and white avatars.

Krafton openly acknowledges its intentions to generate profits through Ana. Already, Ana has released her first single and starred in a music video that combines CGI and live-action elements. Ana is expected to play a significant role in Krafton’s metaverse ambitions, set to launch in 2023. Virtual humans were a $10 billion market in 2020 and are projected to reach $527 billion by 2030, according to a study cited by Krafton.

Embracing India’s Potential

Krafton recognizes the immense potential of the Indian market and plans to continue investing in it. The company believes that with clearer guidelines and regulations, it will be able to navigate India’s unique gaming landscape more effectively. Despite the challenges faced, Krafton remains committed to exploring new genres, collaborating with other studios, and venturing beyond traditional gaming avenues.

With an eye toward the future, Krafton aims to establish itself as a global publishing powerhouse while expanding its reach into technology and entertainment beyond gaming. As the company continues to innovate and diversify, it is poised to make a lasting impact on the gaming industry and beyond.

 

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