Krafton’s Bold AI Gamble: From PUBG Dominance to Humanoid Robotics
South Korean gaming giant Krafton isn’t just building worlds; it’s building the potential for a future where in-game AI expertise translates into real-world robotics. The company, fresh off a record-breaking 2025 with KRW 3.3 trillion ($2.26 billion) in revenue – a 22.8% year-over-year increase – is doubling down on artificial intelligence, viewing it as a key driver for innovation and a surprising pathway to the humanoid robotics market.
PUBG Fuels Record Growth, But AI is the Future
Krafton’s success continues to be anchored by the PUBG franchise. PUBG: Battlegrounds achieved its highest-ever annual revenue on PC, growing 16% year-over-year, while PUBG Mobile expanded its reach through new themed modes and cross-platform collaborations. New titles inZOI and Mimesis also contributed significantly, each surpassing 1 million sales shortly after launch in March and October 2025, respectively. Revenue broke down to KRW 1.2 trillion from PC, KRW 1.7 trillion from mobile, KRW 42.8 billion from console, and KRW 358.5 billion from other sources.
The AI Pivot: Beyond Gameplay Enhancements
However, Krafton’s ambitions extend far beyond refining existing game franchises. The company is actively investing in “future-facing AI innovation,” and sees potential to leverage the vast amounts of data generated by its games – specifically, player interactions and behaviors – as valuable training data for AI systems. This isn’t simply about smarter NPCs or more realistic game environments. Krafton is explicitly exploring the possibility of applying its “game-validated AI capabilities” to the development of “Humanoid Robotics.”
From Virtual Companions to Physical Robots
Krafton has already taken initial steps, debuting generative AI companions designed to exhibit “human-like” behavior. This is viewed as a stepping stone towards a broader application of AI, potentially unlocking new business opportunities. The company plans to overhaul its internal structure to incorporate AI-driven automation, streamlining production and live service operations. This strategic shift is supported by a significant investment of up to ₩1.5 trillion ($1.08 billion) over the next five years for acquisitions and development of new IPs.
Strategic Acquisitions and a Robust Development Pipeline
Krafton isn’t relying solely on internal development. The company intends to pursue both large-scale mergers and acquisitions (M&A) to secure established franchises and smaller-to-mid-scale acquisitions to acquire IPs with high growth potential. Strategic equity investments and second-party publishing deals are also on the table. Currently, Krafton boasts a development pipeline of 15 new projects, supported by newly recruited creative leadership and specialized teams. Titles like Subnautica 2, Palworld Mobile, Dinkum Together, and NO LAW are gearing up for launch, diversifying the company’s portfolio across multiple genres and platforms.
Evolving PUBG as a Platform
Even its flagship franchise, PUBG, is undergoing a transformation. Krafton plans to evolve PUBG into a “gameplay platform” by upgrading to Unreal Engine 5 and expanding support for user-generated content (UGC). This move aims to foster a more dynamic and engaging experience, extending the lifespan of the game and attracting a wider audience.
A Contrarian Bet in a Skeptical Industry?
Krafton’s aggressive pursuit of AI-driven innovation comes at a time when sentiment within the game development community is mixed. While the company champions AI as a “key driver” of future growth, recent industry surveys suggest that many developers remain wary of the potential impact of generative AI on their jobs and the creative process. Krafton’s “long-shot approach” – leveraging gaming data for robotics – is particularly ambitious, and its success will depend on its ability to translate virtual intelligence into tangible, real-world applications.
What remains to be seen is whether Krafton can successfully navigate the complexities of AI development and capitalize on its unique position at the intersection of gaming and robotics. The company’s bold vision, coupled with its financial strength, positions it as a fascinating player to watch in the evolving landscape of artificial intelligence.
