India Among Top 5 Markets with Rising Willingness to Pay Among Gamers: Krafton India CEO

• ByStartupStory     |    November 6, 2023

Krafton, the creator of PUBG and Battlegrounds Mobile India, has ranked India among its top five markets, with the country representing one of the top three markets in terms of user base and a growing willingness among gamers to pay. Sean Hyunil Sohn, the CEO of Krafton India, emphasized that India is a long-term focus for the company, given its annual market growth of at least 10-15%.

Despite the popularity of the games in India, Krafton acknowledges that less than 10% of its total user base pays for games in the country. Sohn noted that the paid user base and average revenue per user in India are comparatively lower than those in more developed gaming markets. The company relies on in-app purchases for items like cosmetics and extra skills, rather than real money gaming (RMG) that allows cashouts.

While discussing the potential for entering the RMG segment, Sohn cited strict regulations in Southeast Asian countries, including Korea, where Krafton is headquartered, as a significant hurdle. He emphasized that RMG is not the company’s specialization due to these regulatory constraints.

Addressing concerns about the impact of shooting games, Krafton has voluntarily reduced the daily playtime for minors to three hours and six hours for adults. However, age verification remains a challenge in India. Sohn mentioned that accounts created by minors require parental permission to play the game, but he acknowledged that this might not be sufficient for some critics.

Sohn also highlighted the need for an age verification system in India similar to those in Korea and China. He mentioned the potential for the Indian Ministry of Electronics and Information Technology (Meity) to introduce age verification recommendations in the near future.

In terms of deeper engagement in India, Krafton has invested approximately USD 150 million in gaming companies and plans to invest an additional USD 150 million over the next 2-3 years. The company aims to continue launching new games for the Indian market sourced from various locations, including local developers. Additionally, Krafton is committed to nurturing and supporting the development ecosystem through an incubator program and investments in early-stage startups.

Krafton’s focus on India as a prominent gaming market underscores the company’s dedication to sustained growth and expansion in the region.

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