Krafton, the publisher behind Battlegrounds Mobile India (BGMI), took significant steps to address government concerns and lift the ban on the popular esports title, according to insights from senior government officials and industry executives.

BGMI, the successor to PlayerUnknown's Battlegrounds (PUBG), faced a ban in India in July 2022, prompting Krafton to undertake various commitments to facilitate its return.

 

While the specific reasons for the ban were not disclosed publicly, government officials revealed that Krafton had to relocate data from servers with connections to China to comply with the conditions for BGMI's reinstatement.

Additionally, Krafton pledged to escalate investments in India, a move announced three months after BGMI's ban was lifted.

Furthermore, modifications were made to the game itself, including the implementation of strict time limits for players of all ages to address concerns regarding potential addiction.

Throughout this process, Krafton refrained from public statements and instead engaged directly with the government, a strategy that proved beneficial in facilitating negotiations.

Sean Hyunil Sohn, Krafton's resident India CEO, played a pivotal role in these discussions, driven by the objective of reinstating BGMI in the lucrative Indian market. Sohn's directive from Krafton headquarters was clear: ensure BGMI's return to India under sole Krafton control.

During negotiations, Krafton committed to increased investments in India, signaling its long-term commitment to the market. This included a $150 million investment in Indian startups over the following two to three years, building upon the $140 million already invested in ventures like Nodwin Gaming and Pratilipi.

Additionally, Krafton launched a gaming-focused incubator program for Indian startups, providing financial support and mentorship opportunities.

The ban on BGMI caught both Krafton and the Indian gaming sector by surprise, particularly impacting the esports industry. Despite the ban, BGMI maintained a substantial user base, indicating its enduring popularity among Indian gamers.

The return of BGMI has reinvigorated the gaming ecosystem, with various stakeholders anticipating increased opportunities for growth and revenue generation.

Overall, Krafton's concerted efforts to address government concerns and invest in the Indian gaming landscape underscore its commitment to fostering a thriving gaming community in the country.