Krafton is evaluating how its game tech may be applied to ‘physical AI and robotics’

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Image via Tango Gameworks

Krafton, the video game publisher behind PUBG: Battlegrounds, inZOI, and Hi-Fi Rush maker Tango Gameworks, is evaluating how its game technology “may eventually” be applied to areas such as “physical AI and robotics.”

The news comes from a press release detailing the 2026 management strategy and mid-to-long-term growth plans, which were discussed during a company-wide town hall earlier today, held by CEO Changhan ‘CH’ Kim. One of the topics outlines how Krafton, which declared its transition to an “AI First” company last year, is seeking to build “future value” with the technology.

Regarding the areas of physical AI and robotics, the company claims it sees them as “long-term exploratory opportunities” rather than near-term business initiatives. Moreover, it claims that these areas are “informed by Krafton’s experience operating large-scale virtual worlds and physics-based simulations.” How exactly that expertise could be applied in more concrete terms remains unclear.

“While remaining focused on its core identity as a game developer, Krafton continues to explore opportunities rooted in its game technology,” reads the announcement. “Since 2021, the company has applied AI technologies primarily to enhance gameplay experiences and improve development efficiency, including concepts such as CPCs (Co-Playable Characters).”

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When declaring its intention to transition to an “AI First” company late last year, which took place during an earnings report, Krafton said the move would enable the “automation of new and existing tasks.” The aim, according to the company, is that by advancing its AI capabilities—a technology that has been deemed as controversial by game developers, to say the least—it will be able to “deliver differentiated user experiences and drive innovation across all services.”

Now, Krafton claims it plans to continue reviewing “new opportunities to expand upon its core capabilities” as a game company, based on the technology and R&D expertise accrued over time.

AI is paired with an accelerated game development pipeline and plans to expand the PUBG IP

Today’s announcement by Krafton also outlined two notable efforts. The first revolves around the company driving a pipeline of “26 curated new titles,” deemed as an effort to secure franchise IPs through “early, targeted releases designed to validate potential before scaling.”

Out of the 26, the company claims that 12 of those titles, including Subnautica 2, Palworld Mobile, and Now Law, are targeting release within the next two years. “Each project begins in markets with a clearly identifiable core fan base, enabling data-driven assessment of long-term potential rather than simultaneous full-scale launches,” Krafton said.

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Moreover, the company wants to establish “long-term growth” of the PUBG IP by focusing on it as a content platform. The plans include expanding sandbox-oriented User Generated Content to “consolidate an ecosystem” where players can create and share their creations, as well as diving into new genres with the upcoming launches of PUBG: Black Budget and PUBG: Blindspot.

Today’s town hall meeting and outlines of plans for growth come mere two months after Krafton initiated a voluntary resignation program, following a “record high” quarterly revenue. Back then, the company also froze hiring in areas outside of AI and organizations developing original IP. 

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