KRAFTON's strategic expansion leads to record performance in Q1 2025
KRAFTON, the gaming giant behind the global hit PUBG, has surpassed expectations with its Q1 2025 earnings. The South Korea-based company reported a record-breaking quarter in terms of both revenue and profitability. In Q1 2025, KRAFTON achieved $608.56 million in sales and $333.5 million in operating profit. This represents a 31.3 percent year-on-year (YoY) and a 41.6 percent quarter-on-quarter (QoQ) growth in sales, with operating profit soaring by 47.3 percent YoY.
Record-high sales performance
KRAFTON outperformed in the , reporting the highest quarterly revenue in the company’s history. However, the standout achievement wasn’t just the impressive revenue—it was the operating profit. With a 47.3 percent year-on-year increase, KRAFTON demonstrated not only rapid growth but also smart, strategic expansion. Just three months ago, in Q4 2024, the company posted $432.07 million in sales, marking a 41.6 percent jump in just one quarter.
Segment-wise performance
- PC Games Revenue Highlights: $236 million came from the PC division. Titles like PUBG: BATTLEGROUNDS have continued their strong momentum, especially after transitioning to a free-to-play model.
- Mobile Gaming Dominance: This segment generated $388 million. Strategic IP collaborations, regional events, and partnerships like the Mahindra-BGMI collaboration in India significantly boosted performance.
- Console and Other Contributions: The smaller scale generated $13.34 million from console and other platforms, showing that KRAFTON isn’t ignoring niche markets.
PUBG: The beating heart of KRAFTON
The most successful game for KRAFTON is PUBG, which has evolved significantly since becoming a free-to-play game. This might have been KRAFTON’s smartest move in the industry, as it opened doors for new revenue models—like skins, user-generated content (UGC), and battle passes for players. This move also helped achieve the highest number of concurrent users in March, reaching 1.4 million.
Looking ahead, KRAFTON is set to expand its portfolio with three new PUBG-based titles: the extraction shooter Project Black Budget, the console-focused battle royale Project Valor, and the top-down tactical shooter PUBG: BLINDSPOT. These games will feature photorealistic graphics powered by Unreal Engine 5 and will introduce user-generated content (UGC), promising an immersive and dynamic gaming experience.
inZOI – The fastest-selling of KRAFTON title ever
inZOI, a life simulation game launched on 28 March, sold over 1 million copies in its first week, becoming the fastest-selling KRAFTON title ever. Surprisingly, 95 percent of sales came from global markets. The in-game AI, Smart Zoi, powers co-playable characters (CPCs) with deep behavioural learning. KRAFTON is already hinting at expanded content, more immersive AI, and potential spin-offs.
KRAFTON’s broader game strategy
KRAFTON is strategically developing and publishing new titles. The PC life simulation game Dinkum launched globally on April 23, now localised in 14 languages. Plans include expanding the Dinkum franchise to new platforms and launching a spin-off, Dinkum Together. Additionally, Subnautica 2 is set for Early Access later this year, with a focus on integrating player feedback into its development.
In India, KRAFTON acquired Nautilus Mobile, securing the rights to Real Cricket—India’s most-downloaded cricket game with over 250 million installs and 10 million monthly active users. From acquiring studios to custom marketing, KRAFTON is establishing a strong presence in India.
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