Krafton Details New franchise IP strategy

Summary

Krafton plans to expand first-party production to secure new franchise IPs.
“Second Party Publishing and Licensing” tactics will be used to increase the user base.
The company is looking to secure a new “Big Franchise IP” to build on PUBG's success.

South Korean publisher Krafton Inc. has laid out its business strategy for 2025, detailing its envisioned approach to management, resource allocation, IP acquisition, first-party game development and more. Krafton acts as both publisher and parent company to PUBG: Battlegroundsthe hugely successful Battle Royal game developed by its subsidiary PUBG Studios.

The gaming industry giant, currently valued at over $10 billion, has acquired a number of studios and IPs since its inception in 2018 and has had a hand in the development and release of a wide range of titles, including The Callisto Protocol, [REDACTED], New State Mobileand Moonbreaker. Krafton also recently bought out the defunct Tango Gameworks, formerly under Microsoft's control, along with the rights to any future games in Hi-Fi Rush franchise.

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During a company-wide town hall meeting on January 16, 2025, Krafton announced plans to expand first-party production in an effort to secure new franchise IPs. The company intends to increase investment in its 14 creative studios to increase its output of new releases and attract industry talent. Alongside an expanded slate of new releases, the company is also looking to incorporate so-called “Second Party Publishing and Licensing” tactics as it seeks to expand existing user bases for both new and existing IPs, such as Krafton's upcoming Subnautica 2from Unknown Worlds.

Krafton looks to new and old franchisees for continued growth

Citing “medium to long-term goals and sustainable growth” as key motivations, the company also outlined its intentions to transform its management system and prioritize efficiency in its resource allocation across the development lifecycle. As CEO Kim Chang-han said, “Our new titles will officially launch starting this year. We are fully committed to securing a new 'Big Franchise IP' that will build on the success of PUBG: BATTLEGROUNDS.”

With Krafton's realistic life simulator innZOI announced at Gamescom 2024, and mobile versions of Darker and Darker and Palworld under development due to recent Krafton partnerships, the company looks to be gearing up for significant expansion into a variety of markets. The diversification of interests and reluctance to rely on its flagship IPs can also be seen as insurance against the games industry contraction in 2023-24.

Despite Krafton's critical failure The Callisto Protocolthe company appears well positioned to continue its steady rise in market value. Its recent investments in a number of new studios and non-gaming ventures point to a company that can both absorb occasional missteps and is poised to retain its experience of expansion. Exactly what its new banner IP will look like is hard to say, given the wide range of genres it's dabbled in thus far, but whatever it is is likely to arrive with fanfare that's hard to miss.