23 Daily — According to gamesindustry.biz, Korean game developer Krafton reported its third-quarter financial results for 2026, showing an 11.6% year-on-year increase in revenue to approximately 971.4 billion Korean won (725.9 million USD), but a 35.5% drop in operating profit to 225 billion won (168.1 million USD). Krafton attributed the decline in operating profit mainly to increased costs related to its participation in Gamescom and other events.
Divergent performance across platforms with mobile revenue growth
Krafton's PC and console segments experienced declines, with PC revenue decreasing by 32.5% to 238.9 billion won (178 million USD) and console revenue falling 15.9% to 8.6 billion won (6.4 million USD). Conversely, mobile revenue grew by 3.2% to 504.3 billion won (375.6 million USD).
For the first nine months of the fiscal year, Krafton achieved record highs with revenue up 51% year-over-year to 3.6 trillion won (2.6 billion USD) and operating profit up 14% to 1.1 trillion won (819.4 million USD), reflecting the company’s diversified platform strategy.
Steady growth in PUBG IP and expansion through user-generated content
The PUBG IP revenue increased 11% year-over-year, driven by PUBG: Battlegrounds maintaining double-digit growth in monthly active users (MAU) on PC and console.
Krafton highlighted the ongoing expansion of gameplay via user-generated content (UGC) introduced on PC in December 2025, alongside IP collaborations. These initiatives aim to provide players with more engagement opportunities and reasons to return to the franchise, contributing to sustainable growth.
New game development and AI-centric innovation
Subnautica, an ocean exploration game, entered Early Access in May 2026 and sold over five million copies within 22 days. Krafton continues to focus on preparations for its full launch.
Krafton positions itself as an "AI-first company," prioritizing AI as a key problem-solving tool to drive organizational change and productivity. The company recently showcased its in-house large language model, Raon-1, which is tailored for understanding game language and mechanics, enhancing game AI such as PUBG Ally.
Plans include scaling Raon-1 and developing a full-duplex speech model, leveraging AI expertise from gaming to develop specialized models for future business areas.
Editor's take: Krafton's strategic blend of IP growth and AI innovation
Despite a drop in quarterly operating profit, Krafton's revenue growth underlines the effectiveness of its diversified platform approach, particularly the growth of mobile gaming offsetting declines in PC and console segments. The continued strength of PUBG IP, boosted by user-generated content, supports prolonged player engagement and monetization.
For entrepreneurs, Krafton's integration of large-scale IP with user content ecosystems offers a blueprint for enhancing product lifecycle and user retention. Its development of proprietary AI language models signals emerging opportunities for AI-driven innovation in gaming and beyond. Startups can explore similar AI tools to validate potential applications and competitive advantages within their markets.