South Korean game development powerhouse, Krafton, has announced a 3% year-on-year rise in sales for Q1 2023, clocking in at an impressive $408 million. This surge is hardly a surprise, given the global gaming population’s recent expansion.
While operating profits did see a 10% dip, settling at $214 million, net profit painted a different picture, soaring to $202 million. This represents an 11.6% growth compared to the previous year.
PUBG: Krafton’s Power Player
Krafton’s flagship game, PUBG, significantly contributed to the company’s financial prowess. With a 68% year-on-year growth on both PC and consoles, the game accounted for a staggering 33% of Krafton’s total quarterly revenue.
The game’s success is largely attributed to the newly introduced map-making feature, allowing players to create and share their own customized maps within the gaming community. Celebrating its sixth anniversary in March, PUBG remains a strong contender in the online gaming arena.
Krafton’s Future Strategy: Quality Games and Strategic Investments
In their financial report, Krafton outlined ambitious plans for the future. The company aims to create and publish an array of quality games, in addition to making strategic minority stake investments.
“The company plans to form a virtual organization to better support the 24 project pipelines currently under development within its ecosystem,” the report stated.
Krafton India: New Releases and a Test Run
Krafton India has been making noteworthy strides of its own. The company recently launched two new games in the Indian market – ‘Road to Valor: Empires’ and a test release of ‘Defense Derby’.
These games differ greatly from Krafton’s usual offerings, such as PUBG or BGMI, but have been well-received. ‘Road to Valor: Empires’ is a Real-Time Strategy (RTS) game, while ‘Defense Derby’ introduces a Tower Defense (TDS) style of play.
Krafton’s First Canadian Studio: Brewing New Adventures
In February, Krafton spread its wings further, establishing its inaugural studio in Canada. The studio is hard at work on ‘The Bird That Drinks Tears’, a game adapted from a fantasy novel by Yeongdo Lee.
Krafton’s financial performance in Q1 2023 showcases its strength and resilience in the ever-evolving gaming industry. With a robust portfolio of games, strategic investments, and a keen eye for expansion, Krafton continues to cement its position as a global gaming titan.