Pixel P&L: Asia-Middle East Gaming Revenue Climbs to $89 Billion With 1.7B Gamers

Welcome to another edition of Pixel P&L. This issue takes 5 minutes to read. If you only have one, here are the 5 most important things:

• The Asian gaming market is projected to hit $89 billion in 2025, with India surging toward 500 million gamers.

• Dream11 pivots to creator-led sports platform after India's real money gaming ban eliminated 95% of its revenue.

• S8UL launches a six-month talent hunt for Tekken 8 and Street Fighter 6 players across India.

• Clair Obscur: Expedition 33 becomes Xbox Game Pass's biggest third-party launch with 5 million units sold.

• Coffee Stain co-founders launch Feeble Minds studio with co-op soulslike debuting in early 2026.

Let's get into it.

Asia Gaming Market Set to Hit $89 Billion in 2025, Driven by Mobile Growth and India Surge

The Asia and Middle East gaming market will reach $89 billion in 2025, up 2.7% year-over-year, according to Niko Partners' latest market update, with the gamer population growing to 1.7 billion.

The research firm raised its projections from earlier estimates, citing improved consumer dynamics and favorable regulatory changes. Niko now expects the region to represent a $100 billion opportunity by 2029.

India emerges as a standout market, on track for 500 million gamers this year and projected to reach 700 million by 2029. The country's August 2025 PROG act, which banned real money gaming while boosting support for video games and esports, signals government commitment to industry growth.

China, Japan, and Korea will maintain dominance, accounting for 89% of regional revenue by 2029. Meanwhile, console gaming shows the fastest growth trajectory through 2029, though representing just 6.3% of current revenue, with Nintendo's Switch 2 and anticipated titles like Grand Theft Auto VI expected to accelerate adoption.

Dream11 Pivots to Creator-Led Sports Platform After Real Money Gaming Ban

Dream Sports unveiled a revamped Dream11 platform on December 4, transforming the fantasy sports app into a creator-driven entertainment hub following India's prohibition of real money gaming. The overhaul comes three months after Dream11 suspended paid contests that generated 95% of its revenue, adapting to August's PROG act banning games where users deposit money expecting winnings.

"We are now a second-screen sports entertainment platform," said co-founder Harsh Jain, positioning Dream11 as a virtual watch party destination featuring 25 onboarded creators who livestream matches with commentary and analysis.

Users earn "DreamBucks" loyalty points by watching streams, which can be spent on creator shoutouts and pinned chats. Creators will receive the majority of revenue generated, with Dream11 taking a smaller share.

The company shifted to an ad-supported free-to-play model in August, attracting brands including Swiggy and Tata Neu. Dream11 reported 10 million daily active users in September and expanded internationally to 11 countries in October.

The $8 billion-valued company aims to reduce user drop-off during matches by keeping fans engaged through in-match creator content.

⚡️Quick Bytes

S8UL Launches Six-Month Talent Hunt for Indian Fighting Game Players

Indian esports organization S8UL announced a nationwide talent program to develop competitive players in Tekken 8 and Street Fighter 6, running January through June 2026. The initiative will select six players (two for Tekken 8 and four for Street Fighter 6) based on qualifier performance, providing professional coaching, fully-funded participation in three international tournaments, monthly stipends, and access to S8UL's gaming facility. 

Coffee Stain Co-Founders Launch Feeble Minds Studio with Co-op Soulslike

Coffee Stain co-founders Oscar Jilsén and Mikael Mård announced Feeble Minds, a new studio formed in 2022, alongside its debut title Serpent's Gaze, a four-player co-op soulslike roguelike launching in early 2026. The team includes Satisfactory composer Jannik Reuterberg as CEO and former Paradox product owner Johan Gustafsson. Coffee Stain, acquired by THQ Nordic for $34.8 million in 2018, gained fame through Goat Simulator and published hits including Deep Rock Galactic and Valheim. Parent company Embracer Group plans to spin off Coffee Stain as a standalone entity by year-end.

Clair Obscur: Expedition 33 Becomes Xbox Game Pass's Biggest Third-Party Launch

Clair Obscur: Expedition 33 recorded the highest number of unique users among third-party titles on Xbox Game Pass in 2024, based on first-30-day availability. Sandfall Interactive creative director Guillaume Broche credited Game Pass for lowering barriers for players hesitant about turn-based RPGs. The game sold five million units worldwide by October 8 and earned 12 nominations across ten categories at The Game Awards, while Sandfall won Studio of the Year at the Golden Joystick Awards. ID@Xbox director Guy Richards praised the game's blend of JRPG mechanics with French cultural themes.

⚔️Side Quest

🤣Laugh:

📺 Watch: Outlook Respawn recently published an analysis of why high-end gaming PCs are about to become unaffordable for all Indian players. The AI industry's demand for High Bandwidth Memory is going to create a gaming PC affordability crisis as chip makers abandon consumer RAM and SSD production.

🎮 Play: Old School Rally delivers accessible PS1-era racing fun without tedious fine-tuning. Not realistic but genuinely enjoyable with solid music and runs smoothly on modest hardware. Perfect for casual players wanting straightforward driving action. Great throwback for retro racing fans seeking simple, satisfying gameplay.

📚 Read: GamesIndustry.biz presents dueling visions for gaming's future post-COVID plateau. FunPlus's Chris Petrovic argues growth will shift to emerging markets like Turkey and Vietnam. Ontario Tech's Pejman Mirza-Babaei proposes radical redefinition: measuring success through worker well-being, creative impact, and sustainability instead of revenue. Two opposing frameworks, one urgent question.

💡Did You Know

Even the Vatican isn't immune to Wordle fever. Pope Francis plays the viral word puzzle game every day, sharing his scores with fellow Jesuits in a friendly daily competition. Like millions of families and friends around the world who text their results each morning, the pontiff participates in this simple ritual of connection through the five-letter challenge. It's a reminder that some cultural phenomena transcend all boundaries, whether you're solving Wordle over breakfast in your kitchen or within the historic walls of the Vatican, the game creates the same moments of shared joy and playful rivalry.

📜 Quote of the Day

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