Krafton Inc. to build India into a global game-development hub, set out to discover the next-generation 'PUBG'

【New Delhi, India = Pragya Awasthi, correspondent】South Korean game company Krafton Inc. plans to develop India into a key hub for discovering global game intellectual property (IP). Its strategy is to move beyond the success of its globally popular hit PUBG: Battlegrounds and create the next global hit based on India's local development capabilities.
According to local media and other sources on the 3rd, Krafton Inc. is expanding its investment in India while pursuing the acquisition of additional local game development studios. Sean (Hyunil) Sohn, CEO of Krafton Inc.'s Indian subsidiary, said in a recent interview with local media that "talks on investing in and acquiring another game development studio in India are under review."
Krafton Inc. is well known as the company behind PUBG: Battlegrounds, which helped popularize the battle royale genre. However, the company has yet to secure a second IP with influence and recognition on a par with PUBG. It is therefore working to expand its existing PUBG IP beyond games into a range of entertainment fields, while also focusing on discovering a new global hit in India.
In the interview, Sohn said, "I am confident that India can create game IPs recognized around the world," adding, "Given its abundant talent pool and the high quality of entertainment content created in India, the likelihood that Indian content will be recognized by global audiences is growing."
Structural changes in the global gaming industry are also behind the focus on India. The gaming market, which grew rapidly after the COVID-19 pandemic, has recently faced challenges including slower growth, large-scale restructuring and development studio closures. As cost pressures mount in regions with high labor costs, such as the United States, India is emerging as a new development hub, with a relatively strong software development workforce and competitive labor costs. However, some observers say that despite its extensive experience in software engineering, India has yet to demonstrate clear competitiveness in the global game development market. Krafton Inc. plans to bridge this gap by developing local talent and investing in the country.
Krafton Inc.'s development team in India is currently based in Bengaluru, a major IT hub in the south. The company plans to expand the team, which currently has 12 core members, to as many as 50 over the next two years. Krafton Inc.'s most significant asset in the Indian market is its mobile game BATTLEGROUNDS MOBILE INDIA (BGMI). Launched in 2021 after being localized for the Indian market, BGMI is reported to have nearly 270 million cumulative downloads. India is currently one of Krafton Inc.'s top five markets by revenue.
Investment to strengthen local development capabilities is also continuing. Last year, Krafton Inc. acquired a controlling stake in Nautilus Mobile, a Pune-based Indian mobile game developer. Known for its cricket game Real Cricket, the company is a key partner in expanding the local development ecosystem.
Sohn said the company was "exploring further investments, focusing on teams whose capabilities have been proven through at least one or two development experiences." It also plans to use AI technology to help address the shortage of skilled game developers in India.
Industry observers see the expanded investment in India as a major turning point in Krafton Inc.'s global business strategy. Whether the company can maintain PUBG's popularity while creating new hits through its Indian development teams is expected to be key to its future growth. Attention is focused on whether Krafton Inc. can combine its user base and development talent in India with AI technology to create a global franchise to follow PUBG.
[email protected] Pragya Awasthi, correspondent Reporter