The Future of Mobile Gaming in India: Krafton’s Vision
India’s mobile gaming industry is experiencing a seismic shift, propelled by a young, tech-savvy population, affordable smartphones, and widespread internet access. At the heart of this transformation is Krafton, a South Korean gaming powerhouse best known for PlayerUnknown’s Battlegrounds (PUBG) and its Indian avatar, Battlegrounds Mobile India (BGMI).
Krafton’s ambitions, however, stretch far beyond a single title. The company envisions India not merely as a lucrative market but as a global hub for gaming innovation, development, and cultural representation. Through substantial investments, a diverse portfolio of new games, cutting-edge technological advancements, and a commitment to nurturing local talent, Krafton is poised to redefine the future of mobile gaming in India.
In this article, we discuss about Krafton’s multifaceted vision, exploring their strategic initiatives, the opportunities they aim to seize, and the challenges they must navigate in this dynamic market.
Backed by credible sources and detailed insights, we’ll examine how Krafton’s plans could shape India’s gaming landscape over the next decade, potentially elevating it to a position of global prominence.
The Current State of Mobile Gaming in India
Mobile gaming in India has surged in popularity over the past decade, fueled by a perfect storm of technological and demographic factors. According to the FICCI-EY Report 2024, the Indian online gaming sector reached ₹220 billion (approximately $2.6 billion USD) in 2023, with a projected compound annual growth rate (CAGR) of 21%, aiming to hit ₹388 billion (around $4.6 billion USD) by 2026.
This growth is driven by over 500 million smartphone users, affordable data plans, and a youthful population—over 50% of Indians are under 30—eager to embrace digital entertainment.
Krafton entered this burgeoning market with BGMI, launched in July 2021 as a response to the Indian government’s ban on PUBG Mobile due to data privacy concerns in 2020. Tailored specifically for Indian players with localized content and strict compliance with local regulations, BGMI quickly became a cultural phenomenon, amassing over 100 million downloads within its first year.
Its success underscores India’s appetite for high-quality mobile gaming experiences and positions Krafton as a key player in the country’s gaming ecosystem.
Yet, Krafton’s vision transcends the success of BGMI. They aim to leverage India’s growth trajectory to build a sustainable, innovative gaming industry that contributes to both local and global markets. Their strategy hinges on five key pillars: significant financial investment, an expanded game portfolio, technological innovation, ecosystem development, and proactive engagement with India’s unique challenges.
Krafton’s Investment Strategy: A $300 Million Commitment
Krafton’s financial commitment to India is a cornerstone of their vision, reflecting their confidence in the market’s potential. The company has already invested over $100 million in Indian gaming and tech startups since entering the market and has pledged an additional $150 million over the next two to three years, bringing their total investment to nearly $300 million. This positions Krafton as one of the most aggressive strategic investors in India’s gaming sector.
Their investment strategy is broad and multifaceted, targeting gaming, esports, streaming platforms, and deep tech companies. Notable investments include:
- Nodwin Gaming, a leading esports and gaming media company, which has bolstered India’s competitive gaming scene.
- Nautilus Mobile, the developer of the popular Real Cricket series, catering to India’s cricket-obsessed audience.
- Lila Games, a mobile game studio focused on creating innovative, high-quality titles.
Beyond providing capital, Krafton acts as an active partner, often taking board seats and offering mentorship to help these companies scale. This hands-on approach ensures that their investments ripple across the ecosystem, fostering growth beyond their own titles.
Krafton is also eyeing investments in generative AI firms, a move that could revolutionize game development. Sean Hyunil Sohn, CEO of Krafton India, emphasized this in an interview with The Hindu: “Generative AI will change the way we develop video games. It can be used to create voice actors, find bugs, and create content” (The Hindu). By backing AI-driven startups, Krafton aims to streamline development processes and introduce groundbreaking features in future games, reinforcing their technological leadership.
This $300 million commitment signals Krafton’s intent to build a holistic gaming ecosystem in India—one that supports startups, fuels innovation, and positions the country as a global player.
Expanding the Game Portfolio: A Diverse Gaming Future
While BGMI remains Krafton’s flagship offering in India, the company is not content to rest on its laurels. They are actively expanding their game portfolio to cater to India’s diverse player base, recognizing that the market extends beyond battle royale enthusiasts. Their strategy involves both localizing global titles and developing new games tailored to Indian preferences.
One example is CookieRun India, a localized version of the popular CookieRun series. Featuring Indian-themed characters, events, and aesthetics, this casual game taps into the growing demand for accessible, culturally relevant content. Similarly, Krafton is working on an Indian adaptation of Archery King, a competitive title being customized for local tastes. These efforts highlight Krafton’s understanding of India’s cultural diversity—a market where a one-size-fits-all approach is unlikely to succeed.
According to The Economic Times, Krafton plans to launch new games in India, signaling a robust content pipeline. This diversification into genres like casual gaming and sports reflects their ambition to capture a broader audience. By offering a mix of high-intensity titles like BGMI and lighter, more accessible games, Krafton aims to cement its presence across India’s gaming spectrum.
This strategy also aligns with their goal of fostering long-term engagement. Localized content ensures that games resonate with Indian players, incorporating elements like regional languages, festivals, and traditions. As Changhan “CH” Kim, Krafton’s global CEO, noted in an interview with IGN India, “India is a mix of different cultures and languages” (IGN India). This nuanced approach could set a precedent for other global gaming companies entering the Indian market.
Technological Innovations: Pioneering the Next Wave
Krafton’s vision for India’s gaming future is deeply intertwined with technological advancements, particularly in three areas: generative AI, 5G/6G connectivity, and the metaverse/Web 3.0. These innovations promise to elevate mobile gaming from a casual pastime to a sophisticated, immersive experience.
Generative AI
Generative AI is a game-changer for Krafton, offering tools to enhance both development efficiency and player experiences. As Sean Hyunil Sohn explained, AI can automate tasks like bug detection, voice acting, and content creation, reducing costs and accelerating release cycles.
Beyond development, AI could introduce dynamic in-game features—think non-player characters (NPCs) with realistic behaviors or environments that evolve based on player actions. Krafton’s investments in AI startups underscore their commitment to staying ahead of this curve, potentially debuting AI-driven titles in India within the next few years.
5G and Beyond
The rollout of 5G in India, with its promise of ultra-low latency and high-speed connectivity, is another pillar of Krafton’s strategy. Sohn highlighted this in The Hindu: “The new technologies like 5G and 6G will also open up the opportunities for game developers and Krafton in India.”
Enhanced network infrastructure could enable mobile games with console-quality graphics, seamless multiplayer experiences, and real-time interactions on a massive scale. For instance, BGMI’s esports tournaments could become more immersive, with thousands of players competing simultaneously without lag—a feat unachievable with 4G.
Looking further ahead, 6G—though still in early research stages—could amplify these possibilities, supporting augmented reality (AR) and virtual reality (VR) integrations in mobile gaming. Krafton’s focus on these technologies positions them to capitalize on India’s improving digital infrastructure.
The Metaverse and Web 3.0
Krafton is also exploring the metaverse and Web 3.0, concepts that blend gaming with virtual ecosystems and decentralized ownership. The metaverse could manifest as persistent virtual worlds where Indian players socialize, attend events, or trade in-game assets—imagine a BGMI-themed virtual India hosting Holi festivals or cricket matches. Web 3.0, with its emphasis on blockchain and player-owned economies, could allow gamers to earn and trade digital items securely, a model already gaining traction globally.
While these technologies are nascent, Krafton’s early investments signal their intent to pioneer them in India. A metaverse platform tailored to Indian culture could redefine how players interact with games, turning mobile gaming into a social and economic experience.
Building the Gaming Ecosystem: Empowering Local Talent
Krafton’s vision extends beyond their own portfolio to the broader Indian gaming ecosystem. A key initiative is their incubator program, designed to mentor six to ten Indian game developers. Announced as part of their investment strategy, this program provides resources, expertise, and potential publishing or acquisition opportunities for promising studios. By nurturing local talent, Krafton aims to foster innovation and ensure a steady flow of India-centric games.
India boasts a vast pool of developers, many of whom bring unique perspectives shaped by the country’s rich cultural tapestry. Supporting these creators could lead to games that resonate globally while reflecting Indian stories—think epics like the Mahabharata reimagined as interactive adventures. Krafton’s incubator aligns with their recognition of India’s diversity, as articulated by CH Kim: “India is a mix of different cultures and languages.” Local development hubs in cities like Bangalore or Hyderabad could emerge as Krafton-backed innovation centers, amplifying this effort.
This ecosystem-building approach also strengthens Krafton’s pipeline. Successful incubated studios could produce titles that Krafton publishes, creating a symbiotic relationship that benefits both parties. Moreover, it positions India as a source of original content, shifting its role from a consumer market to a creative powerhouse.
India’s gaming market, while promising, is fraught with challenges—regulatory hurdles chief among them. Krafton learned this firsthand with the 2020 ban on PUBG Mobile, which stemmed from geopolitical tensions and data privacy concerns. Their response—launching BGMI with localized servers and strict compliance—demonstrated adaptability, but the episode underscored the need for vigilance.
The Indian government remains cautious about gaming, citing issues like addiction, data security, and financial risks (e.g., in-game purchases). Krafton has taken a proactive stance, engaging with policymakers to advocate for a supportive framework. Sean Hyunil Sohn highlighted this collaboration: “The government has a focus and the right mind to grow the gaming industry. We are hearing from different ministries about a centre of excellence for the gaming industry”.
Beyond regulations, India’s market complexity—spanning urban tech hubs and rural hinterlands, multiple languages, and varying economic levels—requires a nuanced approach. Krafton’s localization efforts and investments in regional talent aim to address this, but scaling these initiatives nationwide will test their execution.
The Road Ahead: India as a Gaming Powerhouse
Krafton’s vision for India’s mobile gaming future is bold: transform the country into a global leader in gaming innovation and consumption. Several trends bolster this ambition:
- Demographics: A young, digitally native population eager for entertainment.
- Infrastructure: 5G rollout and increasing smartphone penetration.
- Talent: A growing developer community ripe for empowerment.
- Market Growth: Projections of a ₹388 billion industry by 2026.
If Krafton executes its strategy effectively, the implications could be profound. India could produce globally competitive games, host world-class esports events, and pioneer metaverse experiences rooted in its culture.
BGMI might evolve into a platform for virtual social experiences, while new titles like CookieRun India inspire a wave of casual gaming. Local developers, backed by Krafton’s incubator, could craft narratives that rival Western blockbusters, putting Indian stories on the world stage.
Wrapping up!
The future of mobile gaming in India is a canvas of immense potential, and Krafton is wielding the brush with purpose. Their $300 million investment, diverse game pipeline, embrace of AI and 5G, and dedication to local talent paint a picture of a thriving, innovative ecosystem. By navigating regulatory challenges and embracing India’s diversity, Krafton is not just riding the wave of India’s gaming boom—they’re shaping its direction.
As the industry grows, Krafton’s vision could elevate India from a gaming market to a gaming powerhouse, where players enjoy cutting-edge experiences and creators drive global trends. The road ahead is challenging, but with Krafton’s resources and resolve, India’s mobile gaming future looks brighter than ever.