PUBG-maker Krafton to invest $50M every year in India
What's the story
Krafton, the South Korean gaming giant behind PUBG: Battlegrounds, is eyeing an expansion in India. The move comes as part of a strategy to capitalize on the ban of Chinese competitors in one of the world's fastest-growing gaming markets. Sean Sohn, Krafton's head for India, told Financial Times that the company is looking at acquisitions and plans to invest at least $50 million annually in India.
Strategy
Krafton acknowledges challenges
Sohn acknowledged the challenge of replicating the success of PUBG, but emphasized that developing another hit game is a key challenge for Krafton. This highlights Krafton's commitment to expanding its gaming portfolio in India.
Dynamics
India's youth population presents opportunity
India, which has the largest youth population in the world with 65% of its 1.4 billion citizens under 35, presents a huge opportunity for Krafton. However, the market is also known for being price-sensitive and not very open to new games. Despite these challenges, Sohn said "they show strong loyalty once they get to enjoy a game," highlighting potential long-term customer retention in India.
Market growth
India's gaming market is growing rapidly
Despite being just a fifth of South Korea's estimated ₩20 trillion ($14.4 billion) gaming industry, India's market is growing rapidly. According to market researcher Niko Partners, the number of gamers in India grew by 12% last year to reach 444 million. This growth further emphasizes Krafton's decision to invest heavily in the Indian gaming industry and expand its presence here.