Krafton Commits $136M to Gaming Investments in 2025 after its $680M spree

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Krafton Inc., the South Korean gaming powerhouse behind PUBG: Battlegrounds, continues to make waves in the gaming industry with its investment strategy and plans for growth. Over the past two years, Krafton has reviewed over 1,000 studios, spending $680 million to acquire minority stakes in developers worldwide. According to CEO Kim Changhan, the company’s 2025 agenda includes an additional ₩200 billion ($136 million) investment to support over a dozen studios.

As reported by Game World Observer,  in 2024 alone, Krafton invested in 13 studios, up from 11 in 2023 and just five in 2022. Notable deals include the acquisition of Tango Gameworks and partnerships with studios like Pocketpair for Palworld Mobile. These moves align with Krafton’s strategy to create new IPs with franchise potential, aiming for $1 billion in annual value.

Krafton’s financial performance has been equally impressive. The company reported three consecutive quarters of record revenues in 2024, generating nearly ₩ 2.1 trillion ($1.4 billion) from January through October. Its shares have risen over 70% since the start of 2024, reflecting strong investor confidence.

Krafton is also making strides in artificial intelligence (AI), investing over ₩1 trillion ($680.8 million) since 2021 to showcase its R&D capabilities. With 80 engineers already focused on deep learning and AI, the company plans to add 35 more specialists in 2025.

Leveraging Nvidia’s ACE technology, Krafton developed its CPC (Co-playable Character) model to create NPCs capable of dynamic interactions, real-time conversations, and strategic cooperation. This groundbreaking technology is set to enhance player experiences in PUBG and the upcoming life simulation game inZOI.

Despite its successes, Krafton faces industry-wide challenges. According to Mike Fischer, advisor at Krafton and professor at the University of Southern California, the gaming sector is grappling with economic disruptions, evolving player habits, and the dominance of major titles like the anticipated GTA 6.

However, Fischer emphasizes Krafton’s positive influence on the industry, noting its support for studio independence and creative freedom. Recent investments in studios like Ruckus Games and Eschatology Entertainment showcase Krafton’s commitment to empowering creators and fostering innovation.

Looking ahead to 2025, Krafton aims to expand its global footprint while navigating potential disruptions from blockbuster releases. The company’s focus on first-party production, efficient M&A deals, and cutting-edge AI technology positions it as a key player shaping the future of gaming.

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