#Japan #Tokyo #KRAFTON #PUBG #Franchise IP

KRAFTON's Bold Strategy for Growth in 2026

On January 15, KRAFTON Inc., led by CEO Kim Chang-han, showcased its upcoming management strategy for 2026 through an internal communication event named "KRAFTON LIVE TALK." Emphasizing its core gaming business, KRAFTON plans to concentrate on the development of long-term franchise intellectual properties (IPs) in the coming years. 2026 will focus on the theme of "Franchise IP and Its Expanded Value," with a continuing mid-to-long-term strategy aimed at acquiring significant franchise IPs.

This plan builds on the strategies initiated in 2025 and is centered on three main areas:

1. Increased Investment in In-House Development: KRAFTON is committed to ramping up its investments in self-development to foster creativity and innovation.
2. Expansion of Publishing Capacity: The company aims to broaden the number of titles it publishes, allowing a wider audience accessibility to its games.
3. Optimization of Resource Allocation: Efficient distribution of resources is essential in ensuring maximum productivity and effective project management.

This strategic focus intends not just to enhance gaming experiences but to create sustainable and reproducible growth across various genres, contents, and service formats. By strengthening its identity as a unique player in the market, KRAFTON aims to construct IPs that boast both originality and competitive viability.

Learning First & Scale Up Strategy for Franchise IP Acquisition

KRAFTON is implementing a “Learning First & Scale Up” strategy to refine its approach. Recently, the company brought in critical players in production to build a small team development structure. This new approach facilitates the rapid validation of game potential before additional investments, enabling targeted launches with early access versions limited to specific regions.

Currently, KRAFTON operates 26 projects in its development pipeline aiming to quickly assess the success and potential of titles originating from niche markets with core fan bases. Promising projects will be scaled up to become franchise IPs. Among the exciting releases, titles like Subnautica 2, Palworld Mobile, and NO LAW are set to debut within the next two years.

Additionally, existing IPs that have already initiated early access releases will also be expanded. Notably, inZOI and MIMESIS gained momentum last year, achieving global sales surpassing one million copies each. KRAFTON plans to nurture these titles as strategic IPs with a long-term product life cycle, reinforcing inZOI through user-generated content expansion underpinned by AI simulation.

Expansion of PUBG: BATTLEGROUNDS IP Content Platform

While KRAFTON diligently manages its PUBG: BATTLEGROUNDS IP, it is also exploring collaborative opportunities centered on cultural content and enhancements for sustained service. This year, KRAFTON aims to further advance the growth trajectory of PUBG by broadening gameplay methods through motion updates and introducing new game modes. Notably, there are considerations for expanding into media content, evolving the PUBG IP into a formidable content platform that transcends gaming.

Strategic pushes will include:

• - Building a UGC ecosystem that leverages the gunplay and physics engine of PUBG.
• - Expanding globally through mobile and cross-platform initiatives.
• - Venturing into new genres with titles like PUBG: Black Budget and PUBG: BLINDSPOT.

With a goal to reach the next growth stage for PUBG, KRAFTON is keen on embracing new platform compatibility.

KRAFTON's Future Value Creation through AI Technology

While maintaining its core identity as a game developer, KRAFTON is also experimenting with the potential of AI-driven new business avenues. Since 2021, the company has employed AI technologies like Co-Playable Characters (CPC) to enhance game experiences and development efficiencies. The transition into an “AI first company” was declared in October 2025, establishing mechanisms for workflow automation aimed at reinvesting resources back into creative game development.

Looking ahead, KRAFTON is evaluating the applications of "Physical AI" and robotics, confident that accumulated gameplay data and interaction experience from virtual worlds can be relevant to these new fields. The data and simulation experiences developed through titles like PUBG: BATTLEGROUNDS, characterized by finely-honed representations of real-world physics, serve as a foundation for exploring related new business opportunities.

KRAFTON is exploring directions to expand its business domains, leveraging the technologies and R&D capabilities accrued as a game company.

About KRAFTON, Inc.

Headquartered in South Korea, KRAFTON, Inc. is dedicated to discovering and publishing engaging games that provide fun and unique experiences. Established in 2007, the company encompasses globally renowned developers such as "PUBG STUDIOS," "Striking Distance Studios," "Unknown Worlds," "VECTOR NORTH," and many more. Each studio consistently strives to innovate the joy of gaming through new challenges and technologies, broadening platforms and services to capture more fans' hearts.
KRAFTON operates top-tier entertainment content including PUBG: BATTLEGROUNDS, PUBG MOBILE, NEW STATE MOBILE, and other exciting titles. With passionate and ambitious teams worldwide, KRAFTON is a tech-savvy enterprise committed to expanding its vista in multimedia entertainment and deep learning. For more details, visit KRAFTON.