Krafton Freezes Hiring to Fund $70M AI-First Game Development Strategy
Krafton Inc., the South Korean gaming giant behind PUBG, has implemented a hiring freeze to redirect resources toward a $70 million AI-driven development strategy. The company plans to integrate AI NPCs using Nvidia's ACE technology, with new cricket-themed titles expected by 2026-2027.
Despite a 21% revenue increase in Q3 2024, Krafton's operating income growth of 7.5% missed analyst expectations. Shares have declined 10% in 2025 amid broader gaming sector volatility, reflecting investor skepticism about the AI pivot.
The MOVE signals a strategic shift toward specialized AI talent and machine learning infrastructure, with 100 billion won (3.7% of 2024 revenue) allocated to these initiatives. This comes as the $178 billion global gaming market faces headwinds.