Krafton, the renowned creator behind popular gaming titles such as PUBG and Battlegrounds Mobile India, has reaffirmed India’s critical position within its global market strategy. The company has positioned India as one of its top five markets, recognizing it as one of the top three in terms of user base, with a notable surge in gamers’ willingness to invest in gaming experiences. Sean Hyunil Sohn, CEO of Krafton India, emphasized the company’s long-term commitment to India, citing an annual market growth rate of 10-15% as a significant driver for this strategic focus.
Despite the immense popularity of its games in the Indian gaming landscape, Krafton acknowledges that less than 10% of its user base engages in paid gaming activities. Sohn acknowledged the relatively lower paid user base and average revenue per user in India compared to more developed gaming markets. The company primarily relies on in-app purchases for virtual items, such as cosmetics and enhanced gaming skills, rather than venturing into real money gaming (RMG) involving cashouts.
While discussing the potential for expanding into the RMG segment, Sohn highlighted the regulatory challenges prevalent in various Southeast Asian countries, including Krafton’s home country, South Korea. He emphasized that the company’s expertise does not lie in RMG due to these regulatory constraints.
In response to concerns regarding the impact of shooting games, Krafton has voluntarily implemented reduced daily playtime limits of three hours for minors and six hours for adults. However, the issue of age verification continues to pose a challenge in India. Sohn acknowledged that accounts created by minors require parental consent to access the game, but he recognized that this measure might not satisfy all critics.
Sohn emphasized the necessity of implementing an age verification system in India, similar to those in place in Korea and China. He indicated the potential for the Indian Ministry of Electronics and Information Technology (Meity) to introduce recommendations for age verification in the near future.
Underlining its commitment to fostering a more profound engagement in the Indian gaming market, Krafton has already invested approximately USD 150 million in gaming companies, with plans to inject an additional USD 150 million over the next 2-3 years. The company aims to continue launching new games tailored to the Indian market, sourcing content from various locations, including collaborations with local developers. Additionally, Krafton is dedicated to nurturing the development ecosystem through its incubator program and investments in early-stage startups.
Krafton’s steadfast focus on India’s burgeoning gaming market reflects the company’s dedication to sustained growth and expansion in the region, underscoring its strategic vision for the future of the gaming industry.
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