PUBG Mobile plots return to India with Microsoft deal

PUBG Mobile, the sleeper hit title that was banned in India two months ago over cybersecurity concerns, is plotting to make a return in the world’s second largest internet market, two sources familiar with the matter told TechCrunch.

The South Korean firm has engaged with global cloud service providers in recent weeks to store Indian users’ data within the country to allay New Delhi’s concerns about user data residency and security, one of the sources said.

Updated at 2.09PM IST on November 7: Krafton, the parent firm of PUBG Corporation, announced today it has inked a global partnership with Microsoft. As part of the deal, games including PUBG Mobile that are developed by Krafton or its subsidiaries will be hosted on Microsoft Azure. “With privacy and data security being a top priority for Krafton, the company will be working with Microsoft to ensure personal data protection through Azure,” said Krafton. Microsoft operates data center regions globally, including three in India. Our original story from Friday follows.

PUBG Corporation has privately informed some high-profile streamers in the country that it expects to resume the service in India before the end of this year, the other source said. Both the sources requested anonymity as they are not authorized to speak to the press. PUBG Corporation did not respond to a request for comment Thursday.

The company could make an announcement about its future plans for India as soon as this week. It also plans to run a marketing campaign in the country during the festival of Diwali next week, one of the sources said.

In recent weeks, PUBG has also engaged with a number of local firms, including SoftBank-backed Paytm and telecom giant Airtel, to explore whether they would be interested in publishing the popular mobile game in the country, an industry executive said. A Paytm spokesperson declined to comment.

Chinese giant Tencent initially published PUBG Mobile apps in India. After New Delhi banned PUBG Mobile, the gaming firm cut publishing ties with Tencent in the country. Prior to the ban, PUBG Mobile’s content was hosted on Tencent Cloud.

Late last month, two months after the ban order, PUBG Mobile terminated its service for Indian users. “Protecting user data has always been a top priority and we have always complied with applicable data protection laws and regulations in India. All users’ gameplay information is processed in a transparent manner as disclosed in our privacy policy,” it said at the time.

With more than 50 million monthly active users in India, PUBG Mobile was by far the most popular mobile game in the country before it was banned. It helped establish an entire ecosystem of esports organisations and even a cottage industry of streamers that made the most of its spectator sport-friendly gameplay, said Rishi Alwani, a long-time analyst of Indian gaming market and publisher of news outlet The Mako Reactor.

PUBG Mobile’s return, however, could complicate matters for several industry players, including some that are currently building similar games to cash in on its absence and their conversations with venture capital firms over ongoing financing rounds.

It would also suggest that more than 200 other Chinese apps that India has banned in recent months could hope to allay New Delhi’s concerns by making some changes to where they store their users’ data. (That was also the understanding between TikTok and Reliance when they engaged in investment opportunities earlier this year.)