Krafton Focused on AI Games Surpasses NCSoft in 'Development Costs'

Krafton Invests Record-High R&D Budget Last Year
Surpassing NCSoft Among the '3N' to Launch the 'Second Battlegrounds'

Krafton surpassed NCSoft for the first time by investing the largest amount in game research and development (R&D) in its history last year, totaling 424.8 billion KRW.

According to the business report disclosed by Krafton on the 20th, last year's R&D expenses amounted to 424.8 billion KRW. While it was only in the 100 billion KRW range in 2019, it increased to 200 billion KRW in 2020, 300 billion KRW in 2021, and reached 400 billion KRW last year, rising by 100 billion KRW each year.

Krafton has been increasing its game development budget annually to secure new popular intellectual properties (IPs) following 'Battlegrounds.' In particular, the life simulation game 'inZOI,' unveiled through an online showcase on the 19th, incorporates artificial intelligence (AI) technology. AI-based creative tools such as a '3D printer' that creates three-dimensional objects based on images, 'video to motion' that converts uploaded videos into character movements, and 'text to image' that generates images from prompts are provided. A Krafton official explained, "R&D expenses increased not only because of more in-house development but also due to acquiring specialized development subsidiaries."

NCSoft, which formed the '3N' along with Nexon and Netmarble, invested 421.8 billion KRW in game development last year, showing a decline for two consecutive years since 2022. During the management efficiency process, R&D expenses decreased as services for mobile MMORPGs such as 'TricksterM,' action games like 'Battlecrush,' and baseball games 'Pro Baseball H2·H3' were terminated.