Complete Approval for Resumption of Indian Version of PUBG Service
Targeting India with Content Localization and Increased Investment
Krafton has overcome regulatory uncertainties in India. Its flagship title, Battlegrounds Mobile, has received full approval after the local government's audit period. This game is considered India's "national game," having amassed 100 million cumulative users within a year of its release. However, in July last year, the Indian government abruptly suspended the service without providing any specific reasons. With uncertainties cleared, Krafton is accelerating its efforts in the Indian market through localized content and increased investment.
On the 5th, local Indian media reported that Battlegrounds Mobile India (BGMI) received full approval from the Indian government to resume service. The Indian government lifted the temporary ban on BGMI at the end of May. However, it had planned to make a final decision after monitoring the game's operation for three months. At that time, Rajeev Chandrasekhar, India's Minister of Electronics and Information Technology, stated, "We will closely monitor user harm and addiction issues over the next three months." A Krafton official said, "The Indian government did not specify a three-month deadline when lifting the ban," adding, "The service has been running smoothly since the ban was lifted."
Krafton plans to strengthen localized content. As part of this, it recently released a teaser on its official social media accounts featuring famous Bollywood actor Ranbir Singh. Local media predict that he will appear as a playable character in the game. Indian cricket star Hardik Pandya has also announced his voice appearance in the game.
Since BGMI's service resumed, Krafton has achieved noticeable results. According to the app market analysis service Mobile Index, as of the 4th, BGMI ranks first in revenue in the Indian mobile game market. 'Free Fire Max,' which was number one during the service suspension, has dropped to second place. Free Fire Max, released by Singapore-based game company Garena, is a game with a similar structure to Battlegrounds and has been embroiled in plagiarism controversies. BGMI's revenue contribution is expected to accelerate from the second half of the year. The securities industry estimates BGMI's annual revenue at around 100 billion KRW. This will serve as a boon for Krafton, which posted sluggish results in the first half of this year. Heeseok Lim, a researcher at Mirae Asset Securities, said, "User traffic has recovered to pre-suspension levels since the service resumed, and download metrics have more than doubled," adding, "Daily revenue is expected to exceed 400 million KRW next year."
Krafton is putting significant effort into investment in India. Last month, Krafton's Indian subsidiary announced plans to invest $150 million (approximately 200 billion KRW) over the next 2-3 years. In 2021, it invested $140 million (approximately 185 billion KRW). Investments have been made not only in games but also in digital content sectors such as audio content and media platforms. Esports is also a market of interest. Last month, Krafton partnered with the streaming platform 'GeoCinema' to provide live broadcasts of the BGMI esports tournament 'BGIS 2023.' In October, it will host an esports friendly match in India to commemorate the 50th anniversary of diplomatic relations between the two countries. Hyunil Son, CEO of Krafton India, said, "India is a strategically important market for Krafton," adding, "We are showing Krafton's 'sincerity' through BGMI service and ecosystem investments."
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