Krafton’s share price drops due to Callisto Protocol’s poor sales

Publisher Krafton expected its survival horror title to reach five million units sold, but analysts have now lowered the target to just two million.

The details:

• The Callisto Protocol was released in December 2022 on all major platforms with a decent amount of hype behind it. Striking Distance Studios CEO, Glen Schofield, was one of the creative minds behind the original Dead Space, so fans were happy to hear that a new survival horror title was on the horizon. However, upon release, the game received mixed reviews and the PC release was plagued with severe performance issues.
• Krafton seems to have targeted five million unit sales, but it’s safe to say that won’t be reached anytime soon. As reported by K-Odyssey, analysts from Korean firm Samsung Securities have revealed that sales expectations have now been lowered to two million units, which will "not be easy [to achieve] until this year (2023).”
• The biggest issue stemming from the lackluster sales performance is that Krafton spent upwards of 196 million KRW (approximately $159 million USD) on the title’s development since it acquired Striking Distance Studios in 2020. Added to marketing costs, this results in a big chunk of cash that Krafton has to recuperate.

What is Krafton working on now?

• New Callisto Protocol content is coming in 2023, including some paid DLC. The first content drop is coming on February 7, and includes new game modes and cosmetics. This might help push sales of the base game, as well as bring in some extra revenue from pre-existing customers, but it seems unlikely that it will make too much of a difference overall.
• Krafton’s heavy hitter PUBG: Battlegrounds (PUBG) has released a new update with many changes and additions to pre-existing maps alongside the standard bug fixes. The map Vikendi now features the “Blizzard Zone,” a dangerous area where players have to take consistent damage, move slower, and have their senses hindered. It might sound like a storm to avoid, but players will be able to access the secret room within the zone as long as they have a security key on hand, giving them a chance to grab items found nowhere else on the map. You can read the rest of the game’s patch notes here.