Krafton Inc., a South Korean video game publisher and holding company, has emerged as a titan in the global gaming industry, known for its innovative titles and bold expansion strategies. Headquartered in Bundang District, Seongnam, Krafton was established in November 2018 as a parent company for Bluehole, founded in 2007 by Chang Byung-gyu.
The name “Krafton” draws inspiration from medieval craft guilds, reflecting the company’s commitment to craftsmanship in game development. With a portfolio that includes blockbuster titles like PUBG: Battlegrounds, The Callisto Protocol, and Subnautica 2, Krafton has solidified its reputation as a pioneer in creating immersive gaming experiences.
This article explores Krafton’s journey, its key titles, recent controversies, and its vision for the future, drawing on insights from various sources.
The Rise of Krafton
Krafton’s origins trace back to Bluehole, a studio founded to push creative boundaries in gaming. Bluehole’s early success came with TERA, a massively multiplayer online role-playing game (MMORPG) launched in 2011.
However, it was PUBG: Battlegrounds (originally PlayerUnknown’s Battlegrounds), released in 2017, that catapulted the company to global fame. PUBG popularized the battle royale genre, attracting millions of players and drawing investment from Chinese giant Tencent Holdings.
The game’s success prompted Bluehole to reorganize its subsidiaries under Krafton Game Union in 2018, creating a unified structure to manage its growing portfolio. Kim Chang-han, CEO of PUBG Studios, was appointed Krafton’s CEO, steering the company toward further expansion.
Krafton’s business model emphasizes innovation and acquisition. Since its inception, the company has acquired studios like Unknown Worlds (Subnautica), Striking Distance Studios (The Callisto Protocol), and Tango Gameworks (Hi-Fi Rush), each bringing unique creative identities to the Krafton family.
In 2024, Krafton invested in 10 overseas game developers, seeking the next big franchise to follow PUBG’s success, with plans to invest up to 1.5 trillion won over the next five years.
This aggressive strategy, fueled by PUBG’s revenue (which accounts for over 80% of Krafton’s 2.71 trillion won revenue in 2024), underscores its ambition to dominate the global gaming market.
Key Titles in Krafton’s Portfolio
Krafton’s portfolio spans diverse genres, from survival crafting to horror and simulation games. Here are some standout titles:
- PUBG: Battlegrounds: The cornerstone of Krafton’s success, PUBG remains a cultural phenomenon. Its 2025 updates, such as Update 36.1, introduced a revamped Ranked system and new tactical tools, keeping the game fresh for its massive player base. Krafton also launched Battlegrounds Mobile India (BGMI) in 2021 to reclaim the Indian market after a ban on PUBG Mobile due to data privacy concerns. BGMI has since amassed over 100 million registered users.
- Subnautica 2: Developed by Unknown Worlds, this open-water survival game is highly anticipated but has faced delays, now slated for a 2026 Early Access release. Recent leadership changes at Unknown Worlds sparked controversy, which we’ll explore later.
- The Callisto Protocol: A survival horror game from Striking Distance Studios, released in 2022, it aimed to set a new standard in the genre but fell short commercially. A follow-up title, [REDACTED], launched in October 2024, receiving positive initial reviews.
- inZOI: A life simulation game set for release in 2025, inZOI allows players to create and control characters in a detailed virtual world, showcasing Krafton’s push into new genres.
- Dinkum: This Australian outback-inspired life sim, released in 2025, gained traction with updates like the Night Market, offering players new customization options.
Krafton’s upcoming titles, such as MIMESIS (a co-op horror game), Private Military Manager (a tactical simulation), and PUBG: BLINDSPOT (a 5v5 military shooter), highlight its commitment to diverse, innovative gaming experiences.
The Subnautica 2 Controversy
Krafton’s handling of Subnautica 2 has drawn significant attention. Originally planned for an Early Access launch in 2024, the game was delayed to 2026, prompting fan backlash and legal action. In July 2025, Krafton replaced Unknown Worlds’ leadership—co-founders Charlie Cleveland, Max McGuire, and CEO Ted Gill—with Steve Papoutsis, former CEO of Striking Distance Studios.
Krafton accused the former leaders of “abandoning responsibilities,” alleging Cleveland prioritized a personal film project over Subnautica 2 development, leading to delays and insufficient content volume.
The controversy deepened with reports of a $250 million bonus tied to Subnautica 2’s release, which was to be shared among Unknown Worlds’ staff. The delay, announced just before the bonus payout deadline, led to speculation that Krafton acted to avoid the payment.
Krafton denied these claims, stating the delay was based on playtest feedback to ensure a “more complete experience.” However, Cleveland countered that the game was “ready” for Early Access, and the ousted leaders have since filed a lawsuit against Krafton, signaling ongoing tensions. Fans have reacted strongly, with some organizing boycotts on social media, expressing distrust in Krafton’s management decisions.
Krafton has emphasized its commitment to the remaining Subnautica 2 team, promising fair compensation and continued support. The company insists the core development team remains unchanged, aiming to deliver a game that meets fan expectations.
Krafton’s Global Ambitions
Beyond Subnautica 2, Krafton is expanding its global footprint. Its 2021 investment in India’s Pratilipi, a storytelling platform, reflects its interest in integrating narrative content into gaming, potentially for adaptations or new IPs. Krafton’s focus on India includes BGMI and games like Garuda Saga, tailored for the Indian market. The company also signed a licensing agreement with Pocketpair in 2024 to develop a mobile version of Palworld, further diversifying its portfolio.
Krafton’s vision, as articulated by CEO CH Kim, is to create “immersive, virtual worlds” where players connect and share experiences. The company’s 2024 financial success (1.18 trillion won in operating profit) supports its aggressive investment strategy, including acquisitions and new studio formations. Krafton’s acquisition of Tango Gameworks in 2024, saving the studio behind Hi-Fi Rush, demonstrates its commitment to preserving creative talent.
Conclusion
Krafton Inc. stands at a pivotal moment in its evolution. With a robust portfolio, significant financial backing, and a focus on global expansion, the company is poised to shape the future of gaming. However, the Subnautica 2 controversy highlights the challenges of balancing creative control, corporate oversight, and fan expectations.
As Krafton navigates these waters, its ability to deliver on promises—both to players and developers—will define its legacy. With upcoming titles and a commitment to innovation, Krafton remains a key player to watch in the gaming industry.