The Callisto Protocol

Poor Performance Is Not a Game Engine Problem

The prevailing industry narrative that game engines are responsible for poor performance in modern titles is a fundamental misdiagnosis.

• Poor game performance, particularly frame rate issues, is primarily a result of development process shortcomings rather than the game engine itself.
• Common development mistakes leading to performance problems include over-reliance on visual features, inadequate use of profilers, poor GPU/CPU budgeting, lack of ongoing optimization, unoptimized assets, insufficient testing on dev kits, and aggressive minimum specifications.
• Several high-profile games, including The Callisto Protocol (Dec 2022), Lords of the Fallen (Oct 2023), Immortals of Aveum (Aug 2023), Remnant II (Jul 2023), STALKER 2 (Nov 2024), The Oblivion Remaster (Apr 2025), Borderlands 4 (Sep 2025), and MindsEye (Jun 2025), launched with significant performance issues, often attributed incorrectly to Unreal Engine.

Call of Duty and Dead Space Creator Glen Schofield: "AAA Is Not Dead Because Some Exec Says So"

Glen Schofield, the creator of Dead Space and various Call of Duty titles, challenges the prevailing industry narrative that the AAA game development model is obsolete.

• Glen Schofield rejects the narrative that AAA gaming is dead, arguing that the sector has historically driven technological innovation and established standards for the entire industry.
• The Callisto Protocol, developed by Striking Distance Studios, cost $160 million to produce, leading to two separate financial audits by publisher Krafton.
• Schofield regrets the decision to ship The Callisto Protocol in December 2022, citing pressure from Krafton to meet Korean stock market deadlines as the primary cause for the game's poor technical launch state on PC.

KRAFTON 4Q22 & FY2022 Earnings Results

The 2022 fiscal year results for KRAFTON reflect a period of strategic transition, characterized by the successful implementation of a free-to-play model for the PUBG franchise and a pivot toward diversified global game development.

• KRAFTON achieved a 2022 annual revenue of KRW 1,854.0 billion, a 1.7% year-over-year decrease, while operating profit rose 15.5% to KRW 751.6 billion.
• The company plans to release 21 new titles between 2023 and 2025, including new entries in the Subnautica series and a new extraction shooter.
• Fourth-quarter 2022 revenue grew 6.8% year-over-year, supported by the launch of The Callisto Protocol and stable PC and console performance, despite a net loss caused by non-operating impairment charges.

KRAFTON 4Q22 & FY2022 Earnings Results

KRAFTON’s 2022 fiscal year results reflect a period of strategic transition toward a free-to-play (F2P) model for its flagship PUBG PC and console titles, alongside a diversification of its development pipeline.

• KRAFTON reported 2022 annual revenue of KRW 1,854.0 billion, a 1.7% year-over-year decline, while operating profit rose 15.5% to KRW 751.6 billion.
• The transition of PUBG PC and console titles to a free-to-play model drove the addition of 45 million new registered users.
• Console segment revenue surged by 430.2% year-over-year, significantly bolstered by new title releases and studio portfolio expansion.

Dwarf Fortress and Ixion Debut Analysis

The early December 2022 period highlights a significant trend on Steam where deep, complex strategy and simulation titles are dominating player interest and driving high Day 1 revenue.

• Dwarf Fortress achieved over 160,000 units sold within 24 hours of its early December 2022 release, peaking at over 22,000 concurrent users.
• Complex simulation titles are seeing high market demand, evidenced by Ixion reaching 16,000 concurrent users despite reported game balancing issues.
• New release performance is highly polarized; while Choo-Choo Charles saw strong engagement, Hello Neighbor 2 underperformed with fewer than 700 concurrent users.

Plus: Darktide, Midnight Suns, Callisto Protocol, Need For Speed Go Big!

This analysis provides a comprehensive overview of PC and console game performance during late November and early December 2022.

• Warhammer 40,000: Darktide achieved a strong commercial debut on Steam, exceeding 100,000 concurrent users despite player backlash regarding its monetization model.
• Dwarf Fortress entered the market with high momentum, carrying over 120,000 followers into its Steam release.
• The Callisto Protocol suffered a poor launch on PC, receiving 'Mostly Negative' user reviews primarily due to technical stuttering issues.

KRAFTON 3Q22 Earnings Results

KRAFTON’s third-quarter 2022 earnings results reflect a strategic pivot toward strengthening its PC and console segments while navigating headwinds in the mobile gaming market.

• KRAFTON reported 3Q22 revenue of KRW 433.8 billion, a 2.4% quarter-over-quarter increase driven by record-high PC revenue following the transition of PUBG: Battlegrounds to a free-to-play model.
• Net profit rose 16.7% quarter-over-quarter to KRW 226.4 billion, despite a decline in operating profit to KRW 140.3 billion.
• Mobile revenue fell 12% due to the end of pandemic-related growth and regulatory challenges impacting Battlegrounds Mobile India.

KRAFTON 1Q22 Investor Presentation

KRAFTON’s first-quarter 2022 investor presentation outlines a strategic transition toward a diversified, technology-driven gaming ecosystem while maintaining the core performance of its flagship PUBG intellectual property.

KRAFTON 4Q21 Investor Presentation

KRAFTON’s fourth-quarter 2021 investor presentation outlines the company’s financial performance and strategic roadmap for 2022 and beyond.

KRAFTON 4Q21 & FY2021 Earnings Results

The 2021 fiscal year results for KRAFTON, Inc. reflect a period of strategic transition and expansion, characterized by a 12.9% year-over-year revenue increase to KRW 1,886.3 billion.

• KRAFTON reported a 12.9% year-over-year revenue increase to KRW 1,886.3 billion for fiscal year 2021, though operating profit fell 17.3% to KRW 639.6 billion.
• Operating costs surged by 39.1% in 2021, primarily due to increased personnel, marketing, and share-based payment expenses.
• The company is transitioning its core PUBG: BATTLEGROUNDS title to a free-to-play model and has expanded its studio portfolio through the acquisition of Unknown Worlds.

Konami to Create Remakes and New Installments of Classic IPs

Konami has shifted its strategic focus toward revitalizing its legacy intellectual properties through a combination of remakes and new installments.

• The Silent Hill 2 remake surpassed 1 million units sold globally within three days of its October 2024 launch, reaching this milestone significantly faster than the original game.
• In the European market, the Silent Hill 2 remake saw 78% of its launch sales on PlayStation 5, with the remaining 22% coming from PC.
• While the Silent Hill 2 remake outperformed horror titles like The Callisto Protocol and Alan Wake 2, its European launch sales trailed behind the Dead Space remake.