Pixel P&L: Gaming VC Funding Plummetting

We’re covering Konvoy’s latest report on the gaming industry that indicates that investments are drying up, EA’s revised FY2025 guidance after recent flops, and much more.

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Gaming Investments Hit Five-Year Low, Says Konvoy Report

Gaming funding slowed to a five-year low in the last quarter of 2024, according to Konvoy’s latest Gaming Industry Report. The sector is expected to finish 2024 valued at $188 billion, with projections suggesting it could expand to $223 billion by 2029.

Konvoy found that only $286 million in venture capital poured into gaming in Q4, marking a 47% quarter-over-quarter decline. The number of deals also dipped 25% to 83, with most of the drop concentrated in growth-stage funding. Early-stage funding experienced a decrease but remained more active than later stages.

The report highlights a concerning trend for gaming startups striving to move from seed to Series A funding. Only 11.5% of companies that raised a seed round since early 2018 advanced to Series A within two years, a rate below the 20-30% success range of other industries. For those that raised seed funding since Q4 2021, the graduation rate sank to 4%.

Interest in AI-driven gaming companies subsided, accounting for 10% of total funding in Q4 versus 22% in the previous quarter. Additional findings spotlight Nintendo Switch sales relative to the PlayStation 5 and Xbox Series X/S, as well as scrutiny of child protection efforts within the games sector.

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EA Lowers FY2025 Guidance After EA Sports FC 25, Dragon Age Flop

Electronic Arts (EA) on Wednesday revised its full-year guidance for fiscal 2025, citing weaker-than-expected performances from EA Sports FC 25 and Dragon Age: The Veilguard. The video game publisher now forecasts net bookings of $7.0 billion to $7.1 billion, down from a prior range of $7.5 billion to $7.8 billion.

Preliminary results for the third quarter also fell short, with net bookings projected at $2.2 billion compared with earlier guidance of $2.4 billion to $2.5 billion. EA blamed sluggish sales of its flagship football series, saying early momentum “did not sustain.” The firm also reported 1.5 million players for Dragon Age, falling 50% short of internal targets.

“Dragon Age and EA Sports FC 25 underperformed our net booking expectations,” said CEO Andrew Wilson. “But we remain confident in our long-term strategy.” CFO Stuart Canfield said the firm is “committed to operational discipline” and expects growth to resume in fiscal 2026.

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G2 Esports Unveils Media House Agency '62'

This initiative is part of the European esports organization’s strategy to diversify beyond competitive gaming. The agency aims to provide creative advertising, media buying, and content production services, catering to brands seeking to engage with youth culture. Mathieu Lacrouts, a seasoned marketing executive and former CEO of Hurrah.media, will spearhead the initiative.

Google, Meta, JioStar Dominate India's Media and Entertainment Sector

The three companies collectively command over half of the ₹2.3 trillion industry, according to a Business Standard study. Google and Meta lead the digital advertising market, capturing 95% of the ₹64,500 crore spent on digital media in 2023 through platforms like YouTube, Facebook, and Instagram.

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💡Did You Know

The Philips CD-i is widely regarded as the most expensive gaming console ever produced. Released in 1991, it initially retailed for $1,000, which is equivalent to nearly $2,000 today when adjusted for inflation. Designed as a multimedia device rather than a dedicated gaming console, the CD-i offered features like interactive encyclopedias, video playback, and basic games. However, its high price and underwhelming game quality led to poor market performance. Despite hosting a few Nintendo-licensed titles like Hotel Mario and Zelda: The Wand of Gamelon, the system failed to compete with more affordable and gaming-focused consoles like the SNES and Sega Genesis and eventually led to its discontinuation.

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📜Quote of the Day

“When it looks impossible, look deeper... and fight like you can win.”

— Aloy, Horizon: Zero Dawn

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Krafton’s Rising Star Scheme and NIP’s $40M Windfall

Good morning everyone! We cover the launch of Krafton’s ‘Rising Star’ Program, NIP Group’s $40 Million fundraise from Abu Dhabi, IGX 2025’s postponement and more in today’s edition.

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Krafton India Launches Program for Emerging Talent

Krafton India Esports has launched the ‘Rising Star’ Program aimed at empowering aspiring esports athletes and content creators, as announced on January 21, 2025. This initiative seeks to identify and nurture emerging talent within India's burgeoning esports landscape.

The program offers mentorship focusing on skill development in live streaming, content creation, and personal branding, providing participants with a comprehensive foundation for success. Aspiring candidates must meet specific eligibility criteria, including a minimum of 1,000 followers on social media platforms and participation in at least two official BGMI events.

Karan Pathak, Associate Director of Esports at KRAFTON India, emphasized that the program reflects the company's commitment to fostering a sustainable esports ecosystem. “Through grassroots development and unparalleled opportunities, this program aspires to strengthen the foundation of competitive gaming while inspiring a new generation of players and content creators,” he said.

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NIP Group Secures $40M Funding from ADIO to Boost MENA Gaming

NIP Group Inc. has secured a landmark partnership with the Abu Dhabi Investment Office (ADIO), receiving up to $40 million in funding over four years to bolster its expansion in the Middle East. The five-year agreement, announced on January 21, 2025, will see NIP Group establish its global headquarters in Abu Dhabi, UAE.

The partnership aims to create a thriving local gaming ecosystem, with NIP Group contributing to job creation and advising ADIO on gaming strategies. ADIO's support will include access to financial and non-financial resources, facilitating NIP Group's growth across various verticals such as esports operations, game publishing, and talent management.

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IGX 2025 Postponed Indefinitely

The Indian Gaming Expo (IGX) 2025, scheduled for January 24-25, 2025, at Nesco Ground in Mumbai, has been postponed, sources told the Pixel P&L team. Tickets will be refunded.

Mobile Legends: Bang Bang Ban Lifted in the U.S.

The game has been unbanned just 48 hours after its suspension. The game's developer, Moonton, announced that players can now access the title without any additional actions needed. Players will receive in-game rewards as compensation for the downtime.

U.S. Firm Raises $5M to Build AI Detection Platform

AI or Not has secured $5 million in seed funding to enhance its platform aimed at combating AI fraud, deepfakes, and misinformation. The funding will accelerate the development of its "AI to detect AI" technology.

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💡Did You Know

Stanford researchers discovered that adults who played Pokémon extensively as children have a specific brain region that lights up when they see Pokémon characters. This region, called the occipitotemporal sulcus, is linked to visual processing of familiar objects. The study highlights how repeated childhood exposure to distinct visual stimuli, like Pokémon characters, can shape brain development in remarkable ways. Researchers suggest this phenomenon stems from the unique combination of detailed visuals, repetitive exposure, and focused attention required by the game.

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📜Quote of the Day

“We all lap up the last of our fuel eventually. But that hardly means the journey wasn’t a joy.”

Delamain Taxi, Cyberpunk 2077

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Pixel P&L: Nazara Technologies Secures $60M Investment, Eyes Global Expansion

Today’s edition covers Nazara’s recent $60M raise, the upcoming Snapdragon Pro Series BGMI Finals, Krafton’s new global strategy, and more.

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Nazara Technologies Grows War Chest with $60M Investment and New Game IPs

Nazara Technologies Ltd. has raised INR 495 crore (~$60 million) from existing investors, led by Arpit Khandelwal and Mithun Sacheti through their entity, Axana Estates LLP. This investment will see Axana Estates acquire a 5.4% stake in Nazara via a preferential issue of equity shares priced at INR 990 each.

The transaction, approved by Nazara's board, is pending shareholder and regulatory approvals. Following this stake increase, a mandatory public open offer will be launched to acquire an additional 26% stake in the company, potentially elevating the combined holdings of Khandelwal, Sacheti, and existing promoters to about 61.5%.

Nazara plans to utilize the funds to bolster its global presence in gaming and digital entertainment while pursuing strategic acquisitions. Additionally, the company announced its acquisition of two popular mobile game IPs from ZeptoLab for approximately INR 67 crore ($7.7 million), further expanding its gaming portfolio.

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ESL FACEIT and NODWIN Gaming Bring Snapdragon Pro Series BGMI Finals to Noida

The Snapdragon Pro Series (SPS) has announced the highly anticipated Mobile Challenge Finals for BGMI Season 6, scheduled to take place from January 31 to February 2, 2025, at the Noida Indoor Stadium. This event will feature 16 elite teams competing for a substantial prize pool of ₹1 crore (approximately $120,000), with the champions set to receive ₹50 lakh.

The Mobile Challenge Season, which ran from December 27, 2024, to January 19, 2025, attracted over 3,000 registrations and showcased intense competition among top teams. According to Esports Charts, last year’s tournament reached 210,790 peak viewers and averaged 48,280 viewers, with 3.63 million total hours watched.

Organized by ESL FACEIT Group and NODWIN Gaming in partnership with Qualcomm, the finals will be broadcast live on YouTube and Twitch.

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Krafton Unveils Five-Year Strategy to Build Next ‘Big Franchise IP’

Krafton CEO CH Kim on Jan. 16 unveiled the company’s 2025 management strategy, focusing on building a new “Big Franchise IP” over the next five years. The company said it would increase investment in first-party production, expand publishing volume, and optimize resource allocation. KRAFTON aims to grow its pipeline of new releases through creative studios and plans titles on PC, mobile, console. “We are committed to securing a new Big Franchise IP that builds on PUBG’s success,” Kim told employees at a company-wide town hall. Kim said the first new releases are slated for launch later this year.

Brawl Stars Unveils 2025 Esports Roadmap

There will be six monthly seasons and three major offline events across continents. The new format includes the Brawl Cup, offering players additional chances to qualify for the World Finals. Enhanced integration of ranked play into the competitive scene is also planned, aiming to elevate player engagement and performance recognition.

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Did You Know

Solid Snake’s inclusion in Super Smash Bros. Brawl came at the personal request of Metal Gear creator Hideo Kojima. He initially sought to add Snake to Melee but missed the deadline. Undeterred, Kojima requested Snake for ‘Brawl’, partly fueled by his son’s enthusiasm, marking the first time a third-party character joined the Smash roster.

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Quote of the Day

“There are few things as dangerous in a man as lack of doubt”

• Mimir, God of War: Ragnarok

Marvel Snap and Mobile Legends Caught in TikTok Ban Crossfire - What's Next?

Today's edition covers the U.S. ban on TikTok and its ripple effects on ByteDance's video game business, Skyesports' decision to cancel a tournament citing Valve's alleged inaction, and more.

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Mobile Legends, Marvel Snap Hit by TikTok Ban Fallout

The U.S. government’s ban on TikTok, citing national security concerns, has also triggered the suspension of several mobile games linked to the app’s Beijing-based parent, ByteDance. The affected titles include Mobile Legends: Bang Bang, Marvel Snap, Watcher of Realms, and One Punch Man: The Strongest, with U.S. users reporting they were unable to access them on Sunday.

Shanghai-based Moonton, creator of Mobile Legends: Bang Bang, said the title is “currently unavailable” in the United States due to “circumstances beyond its control,” adding that player accounts remain intact and that it is “optimistic about resuming” services. Marvel Snap, published by ByteDance’s Nuverse division, displayed messages referencing newly enacted U.S. legislation that bars its operation. In a statement, developer Second Dinner said the inclusion of Snap in the ban was unexpected, but that the game is bound by the same rules as TikTok because it shares a publisher with ByteDance. Second Dinner stressed that Snap “isn’t going anywhere.”

This development follows a Supreme Court ruling that compels TikTok to separate from ByteDance or face a U.S. prohibition over concerns the Chinese government could access American data.

President-elect Donald Trump said he will sign an executive order on Monday delaying the TikTok ban, calling for the platform to be acquired by a joint venture with U.S. investors and existing owners, and pledging “no liability” for technology firms that act before Monday’s deadline. TikTok tweeted that it is “in the process of restoring service” and thanked Trump for providing clarity. Some users have already reported the app working again and observers expect ByteDance’s games to resume U.S. operations once regulatory uncertainties are resolved.

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Skyesports Cancels Souvenir 2025

The Indian organizer reportedly canceled the event after applying to Valve for a rescheduling and wildcard invites but receiving no response. “Coupled with the current situation surrounding other events and concerns raised by teams about the tournament potentially becoming unranked, we are left with no choice but to cancel the Skyesports Souvenir 2025,” the organizer said in a statement to Dust2.in. Skyesports did not elaborate on the “current situation.”

According to HLTV, Valve recently emailed tournament organizers reminding them of its new 2025 “Tournament Operating Requirements,” which require organizers to disclose key details of their events well in advance and demand prior approval for any changes. The email allegedly reiterated deadlines for announcing key details about events and warned tournament organizers that Valve would “have to explore penalties” if requirements were not “addressed immediately.”

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PlayStation Reportedly Cancels Live-Service God of War Game

The unannounced project, in development for three years, was one of two live-service titles recently shelved following a company review, according to Bloomberg. The move comes as PlayStation shifts focus toward single-player and online games after facing setbacks with live-service ventures, including the failure of Concord, which led to developer Firewalk’s closure in 2024.

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Did You Know

Chex Quest was the first video game ever included as a cereal box prize! Released in 1996 as a promotional tie-in for Chex cereal, this game was a non-violent first-person shooter that parodied Doom. Instead of blasting demons, players zap "Flemoids," which are gooey creatures invading the Chex universe, using a "Zorch" weapon that sends them back to their home dimension.

It was distributed in specially marked boxes of Chex and became an unexpected hit, leading to two sequels. The game was so popular that it even garnered a cult following, with fans creating mods and remakes years after its initial release.

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Quote of the Day

"You can’t win a game by doing nothing. And if someone else wins it for you, then you haven’t accomplished anything. Life is the same way."

– Kenshin Himura, Rurouni Kenshin

Pixel P&L: Reliance Jio Takes on Web3

In today’s Pixel P&L, we examine the unusual public dispute between Elon Musk and Twitch streamer Asmongold over the authenticity of Musk’s level 97 hardcore Path of Exile 2 character. Also in the spotlight: Reliance Jio’s entry into Web3 through a partnership with Polygon Labs, and other key developments.

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Reliance Jio Partners with Polygon Labs to Enter Web3 Space

Reliance Jio has partnered with Polygon Labs to bring blockchain technology to its digital ecosystem, targeting over 450 million users in India. The collaboration aims to integrate decentralized finance, NFTs, and other Web3 services into Jio's offerings. Polygon Labs, recognized for its Ethereum scalability solutions, will supply the infrastructure to support Jio's blockchain initiatives.

“Joining forces with Polygon Labs marks a significant milestone in Jio’s journey towards digital excellence. We are excited to explore the boundless possibilities of Web3 and bring unparalleled digital experiences to our users,” said Kiran Thomas, CEO of Jio Platforms

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Musk vs. Asmongold: Public Feud Over Path of Exile 2 Smurfing Intensifies

The world’s richest man Elon Musk and popular Twitch streamer Asmongold are at odds over allegations of “smurfing” in Path of Exile 2 (PoE 2), igniting debate within the game’s community. The controversy revolves around Musk’s purported level 97 hardcore character, which many players suspect was not leveled by the Tesla CEO himself.

On January 16, Asmongold upped the stakes during a livestream (which currently has over 760,000 views) by challenging Musk to prove his in-game achievements. The streamer pledged to stream exclusively on Musk’s social media platform, X, for a year if Musk could substantiate the claims.

Musk responded on X, sharing screenshots of private messages with Asmongold and accusing him of being influenced by unnamed editors, calling the streamer “not his own man.” The move raised eyebrows as it may have breached X’s own terms of service, which prohibit sharing private communications without consent.

Despite the heated exchange, Musk has notably not denied the accusations of outsourcing the leveling of his PoE 2 character, fueling ongoing skepticism among fans.

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Visa: Online Gaming Spending in Smaller Indian Towns Grows 16x

Spending on online gaming in India's smaller towns has surged 16 times between 2019 and 2024, according to a Visa white paper on payments.

EA Sports FC 25 Tops Europe’s Game Sales in 2024

Despite sales dipping 5% compared to FC 24, the game still managed to edge out titles like Call of Duty: Black Ops 6 to claim the top spot according to GSD data. Total PC and console game sales rose 1% year-on-year to 188.1 million units, driven by a 15% increase in digital sales to 131.6 million. Physical game sales fell 22% to 56.5 million.

Nintendo Officially Unveils Switch 2, Confirms 2025 Launch

The new console features updated hardware like magnetically attachable Joy-Cons, a USB-C port, and a new button on the right Joy-Con. The console will support backwards compatibility for physical and digital games, though some titles "may not be supported or fully compatible." More details will be revealed during a Nintendo Direct on April 2.

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Did You Know

In 1997, Virus: The Game introduced players to a unique concept where they battled digital enemies within their own computer's file system, represented as 3D environments. The game's advertising campaign was particularly notorious; it featured a downloadable .exe file that simulated the deletion of Windows system files. When run, the program would display a fake interface mimicking a system wipe, only to reveal at the end that it was just a promotional stunt. This controversial marketing tactic left many users terrified, leading to widespread criticism and making it one of the most memorable examples of "scareware" in gaming history. Despite its innovative premise, the game received poor reviews, averaging just 42% across various publications.

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Quote of the Day

“Destiny. Fate. Dreams. These unstoppable ideas are held deep in the heart of man. As long as there are people who seek freedom in this life, these things shall not vanish from the Earth."

- Gol D. Roger, One Piece