Krafton, the South Korean video game company behind PUBG: BATTLEGROUNDS, is showing investors that its biggest global hit may not be its last.
The company reported record results for the first half of 2026, with revenue reaching $1.8 billion and operating profit hitting $670 million. But the bigger story for the global gaming industry is Krafton’s attempt to transform itself from a company built around one blockbuster title into a developer with multiple international franchises.
Krafton became a global name after launching PUBG: BATTLEGROUNDS in 2017. The battle royale game helped reshape online multiplayer gaming and became one of the most successful titles created by a South Korean game developer.
Unlike many game publishers that struggle to maintain momentum after a major hit, Krafton has continued expanding PUBG through regular updates, collaborations and new content across PC and mobile platforms. Revenue from the PUBG franchise increased 25% in the first half of 2026 compared with a year earlier, supported by higher player engagement and increased spending from users.
The challenge facing Krafton now is the same one faced by many global game companies: how to build the next major franchise after a breakthrough success.
The company’s early answer has been Subnautica 2, a sequel to the underwater survival game developed by Unknown Worlds, which Krafton acquired in 2021. The title sold more than 5 million copies within 22 days of its early access release in May, helping the broader Subnautica franchise generate $160 million in revenue during the first half of the year.
For Krafton, the performance represents more than another successful game launch. It is evidence that the company can expand beyond PUBG and establish additional intellectual properties with global appeal.
Krafton is also moving toward a business model increasingly embraced by major global gaming platforms: turning games into ecosystems where players create and share content themselves.
The company has expanded user-generated content features through PUBG Mobile’s World of Wonder platform, allowing players to build custom maps and gameplay experiences. The strategy follows a broader industry trend seen in platforms such as Roblox and Fortnite, where community-created content has become a major driver of long-term engagement.
Krafton plans to strengthen this ecosystem by improving creation tools and introducing collaborations with global entertainment brands, including Naruto and Spider-Man. The company will also introduce WOW Token, a new digital currency designed to support purchases and rewards within player-created content.
The company’s growth strategy comes as South Korean game developers seek to move beyond their traditional strengths in online PC games and mobile titles. Korean publishers are increasingly competing for global audiences through large-scale franchises, console markets and creator-based platforms.
Krafton plans to reveal five new titles at Gamescom 2026, including a new project based on the PUBG franchise along with NO LAW, Project ZETA, Age Twisters and TARAE: The Unbound. The company is using these releases to identify potential future franchises that can support long-term growth.
The strong earnings have also allowed Krafton to expand shareholder returns. The company completed $210 million in treasury share purchases and canceled approximately $230 million worth of shares during the first half of 2026. Including additional planned cancellations, the total value of canceled shares is expected to reach about $300 million.
Krafton’s latest results show that PUBG remains a powerful asset. The company’s next challenge is proving that it can create the next global gaming phenomenon rather than simply maintain the success of its first one.
