Krafton Q3 Revenue Grows 11.6% Despite PC and Console Declines
Mobile gains drive Krafton's revenue growth while operating profits dip due to marketing costs.
1Revenue Growth Amid Challenges
Krafton reported a 11.6% year-on-year revenue increase to 971.4 billion won in the third quarter. This growth occurred despite significant declines in the PC and console segments, which dropped 32.5% and 15.9% respectively. The company successfully offset these hardware-related losses through strong performance in its mobile gaming division during this period.
2Operating Profit Margin Impact
Operating profit fell by 35.5% to 225 billion won during the third quarter. Krafton attributed this sharp decline primarily to increased expenditures associated with participation in Gamescom and other promotional activities. Despite this quarterly dip, the firm's nine-month fiscal performance remains robust, showing a 14% increase in operating profit to 1.1 trillion won.
3Mobile and PUBG Dominance
Mobile revenue grew by 3.2% to reach 504.3 billion won, serving as a critical pillar for the company. The PUBG intellectual property continued its solid growth trajectory, rising 11% year-on-year. Furthermore, PUBG: Battlegrounds maintained double-digit growth in monthly active users across both PC and console platforms, demonstrating sustained player interest in the franchise.
4Expansion Through User Content
Krafton is actively expanding gameplay through user-generated content and strategic IP collaborations. Following the introduction of user-generated content on PC in December 2025, the company aims to provide players with more ways to engage. These initiatives are designed to increase player retention and provide long-term reasons for users to return to titles.
5Subnautica Launch Preparations
The company continues to focus on preparations for the full launch of Subnautica. Since entering Early Access in May 2026, the game has demonstrated strong market performance, selling over five million copies within its first 22 days. This title remains a key component of Krafton’s broader strategy for diversifying its gaming portfolio beyond PUBG.
6AI-First Strategic Shift
Krafton has officially transitioned to an AI-first company, prioritizing artificial intelligence as a primary means of problem-solving. This strategic pivot aims to foster organizational change, increase company-wide productivity, and accelerate long-term corporate value growth. The firm is integrating these technologies across its internal development processes to streamline operations and enhance overall creative output.
7In-House LLM Development
Last month, Krafton previewed its in-house large language model, Raon-1, specifically trained to understand the language and mechanics of games. The company intends to use this model to strengthen game AI capabilities, including the PUBG Ally feature. This development marks a significant step in leveraging proprietary technology to improve the core gaming experience.
8Future AI Business Roadmap
Looking ahead, Krafton plans to expand its lineup with larger-scale versions of Raon-1 and a full-duplex speech model. The company aims to extend the AI expertise accumulated in gaming to the development of specialized models for future business areas. This roadmap highlights a commitment to scaling AI capabilities beyond current entertainment applications.
Original article: GamesIndustry.biz — Krafton Q3 Revenue Grows 11.6% Despite PC and Console Declines