Pixel P&L: Nazara Technologies Breaks ₹10,000 Crore Market Cap Barrier
While western and eastern gaming giants were busy counting their losses, India's Nazara Technologies was quietly counting its way to an incredible run in the stock market. In a quarter where Warner Bros saw gaming revenue plunge 48% and Chinese behemoth HoYoverse watched profits tumble 23%, this scrappy Indian company surpassed the ₹10,000 crore ($1.2 billion) market cap milestone.
In today's email:
Nazara Technologies becomes India's first listed gaming company to hit ₹10,000 crore market cap
HoYoverse faces 23% revenue decline and pivots to AI with founder launching new startup.
Warner Bros reports gaming revenue plunging 48% amid post-restructuring strategy shift.
MOONTON Games partners with Malaysia Esports Federation for SEA Games development.
Giant Bomb, the popular gaming site, has been sold to staff veterans.
Stock Watch: India's Nazara Technologies Hits INR 10,000 Crore Market Cap
Nazara Technologies became India's first listed gaming company to surpass ₹10,000 crores ($1.2 billion) in market capitalization Monday, marking a significant milestone for the country's burgeoning digital entertainment sector.
Shares surged 5.23% to ₹1162.45 on the Bombay Stock Exchange, reaching their highest level since June 2022. The diversified gaming and sports media platform has outperformed the broader market, rising 19% over the past month compared to the BSE Sensex's 6.6% gain.
Analysts attribute the rally to growing investor confidence in India's digital gaming ecosystem, where Nazara has established a strong foothold across mobile gaming, esports, and gamified learning platforms.
The stock has climbed 32% over the past six months, substantially outpacing BSE SENSEX modest ~4% increase during the same period.
Chinese Gaming Giant HoYoverse Pivots to AI for Future Growth
Facing a 23% revenue decline to $4.7 billion in 2024, Chinese gaming powerhouse HoYoverse is betting on artificial intelligence to fuel its next chapter. Billionaire co-founder Cai Haoyu has stepped away from daily operations to launch Anuttacon, a California-based AI startup focused on nontraditional interactive media.
Despite generating over $8.4 billion from its anime-inspired mobile games, HoYoverse's internal documents reveal ambitions far beyond gaming. The company's stated goal is creating a virtual world "more real than reality" by 2030, with AI-generated content at its core.
Anuttacon has recruited AI veterans from Microsoft and Meta, and is testing an AI-powered space game featuring conversational characters. The pivot aligns with HoYoverse's employee manual, which envisions a Roblox-like platform where 3D assets are instantly created upon user command.
However, the strategy faces headwinds as gaming fans remain skeptical about AI's impact on creativity and developer jobs.
Warner Bros Gaming Revenue Plunges 48% Amid Post-Restructuring Strategy Shift
Warner Bros reported a 48% drop in gaming revenue for the quarter ended March 31, 2025, as the entertainment giant continues to recover from last year's underperforming "Suicide Squad: Kill the Justice League" release.
The company, which recently shuttered multiple game studios including Monolith Productions and Player First Games, cited the absence of new game launches during Q1 as an additional factor in the decline. Warner Bros' overall Studios segment saw revenues fall 16% to $2.3 billion, contributing to a 9% decrease in company-wide revenue to $9 billion.
Despite gaming struggles, the company highlighted continued revenue from "Hogwarts Legacy" and "Mortal Kombat 1." Its theatrical business found success with "A Minecraft Movie," which has generated nearly $900 million globally.
Following what executives called a "disappointing" 2024 for gaming, Warner Bros is now concentrating resources on four billion-dollar franchises: Harry Potter, Game of Thrones, Mortal Kombat, and select DC properties, particularly Batman.
⚡Quick Bytes
MOONTON Games Partners with Malaysia Esports Federation for SEA Games
MOONTON Games has formalized an agreement with the Malaysia Esports Federation to develop Mobile Legends: Bang Bang teams for the 2025 Southeast Asian Games. The developer will provide financial and technical support for player preparation, expanding MOONTON's global esports initiatives following similar partnerships in Saudi Arabia and the United States.
Gaming Site Giant Bomb Sold to Staff Veterans
Fandom has sold gaming website Giant Bomb to longtime staffers Jeff Bakalar and Jeff Grubb for undisclosed terms. The sale follows recent content guideline disputes that prompted staff departures. The community-supported outlet returns to independent ownership after Fandom called the move a "strategic decision" to restore the brand's roots.
Indian Esports Giant S8UL Signs North American Warzone Roster
S8UL Esports has unveiled its first Call of Duty: Warzone team, featuring North American players Colin Bowers-Wilson, Braxton Trice, and Ryder Skarzinski. The roster will compete at the 2025 Esports World Cup in Riyadh. This expansion marks S8UL as the first Indian organization to enter global Warzone competition, furthering its international growth strategy.
⚔️Side Quest
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🎮 Play: UFO 50 delivers a collection of 50 genuinely complete retro-inspired games spanning countless genres, each bursting with ingenious mechanics and surprising depth that proves simple ideas executed with passion can outshine big-budget titles.
📚 Read: An analysis of how Roblox's UGC marketplace has evolved beyond mere fashion into a complex economy of digital identity, where players strategically use animations, asymmetrical designs, and pop culture references to express themselves in the platform's social world.
💡Did You Know
Billy Mitchell, a famous video game champion known for his Pac-Man and Donkey Kong high scores, once sued Cartoon Network because he believed a character in "Regular Show" was based on him without permission. The character, named GBF, was a giant floating head who cheated at arcade games - similar to accusations that had been made against Mitchell. The lawsuit was dismissed by the court, which noted several differences between Mitchell and the character, including the amusingly stated fact that "when GBF loses his title, the character literally explodes, unlike Plaintiff." The court essentially concluded that the cartoon character was different enough from Mitchell that it didn't constitute unauthorized use of his likeness.
📜 Quote of the Day
“Given the choice, whether to rule a corrupt and failing empire; or to challenge the fates for another throw - a better throw - against one's destiny... what was a king to do? But does one even truly have a choice? One can only match, move by move, the machinations of fate... and thus defy the tyrannous stars."
-Kain, Legacy of Kain: Defiance
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