Pixel P&L: EA Reports 13% Sales Decline Ahead of $55B Take-Private Deal

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

• EA's sales drop 13% as the gaming giant prepares for its $55 billion take-private deal.

• YouTube announces a new policy to age-restrict graphic video game violence starting November 17.

• Amazon cuts 14,000 jobs, scales back gaming division and ends updates for New World.

• Capcom profits surge 73% driven by catalog sales and Resident Evil anticipation.

• Tencent's Honor of Kings hits a staggering 260 million monthly users. 

Let's get into it.

EA Sales Drop 13% as Company Prepares for Private Transition

Electronic Arts reported a 13% year-over-year decline in net bookings to $1.82 billion for its July-September quarter, as the video game publisher prepares to exit public markets.

The maker of "Madden NFL" and "Battlefield" said it will discontinue quarterly analyst calls and forward-looking guidance ahead of its pending $55 billion take-private deal. The transaction, announced in September, involves Saudi Arabia's Public Investment Fund, Jared Kushner's Affinity Partners and Silver Lake Group, with closing expected by spring 2026.

The sales decline was attributed to tough comparisons against last year's successful "College Football 25" launch, which drove particularly strong performance in the year-ago quarter.

Despite the overall downturn, EA highlighted several bright spots. "Madden NFL 26" fueled bookings growth, while "Apex Legends" returned to double-digit sales increases. "EA Sports FC 26" also showed improved performance after adjusting for content timing differences.

CEO Andrew Wilson emphasized the company's portfolio strength as it transitions away from public scrutiny.

YouTube to Age-Restrict Graphic Video Game Violence

YouTube will begin age-restricting videos featuring graphic video game violence starting November 17, the platform announced.

The updated policies target gaming content showing "realistic human characters" engaged in mass violence against non-combatants or torture. Videos depicting prolonged or zoomed-in violent scenes will be blocked for users under 18 and signed-out viewers.

YouTube did not specify which games would be affected, leaving uncertainty whether the rules apply to stylized violence like Mortal Kombat or more realistic titles like Call of Duty. The platform's current policy generally permits dramatized violence in video games when context makes the fictional nature apparent.

"Our policies are designed to evolve alongside the digital world," YouTube said, noting the updates align with industry standards for mature content.

Creators can avoid strikes by editing existing videos using YouTube's trimming and blurring tools before the deadline. The platform expects minimal disruption for most channels but will notify affected creators via email. Appeal rights remain available for enforcement decisions.

⚡️Quick Bytes

UniPin Hosts Seoul Gaming Seminar for Southeast Asia, India Expansion

Digital entertainment enabler UniPin gathered over 50 Korean gaming professionals in Gangnam on October 23 for insights on Southeast Asian and Indian markets. The seminar covered player behavior, payment ecosystems, and localization strategies across 34+ countries. "We're here to share real-world insights, not just data," said Group CEO Ashadi, as UniPin strengthens bridges between Korea's gaming sector and emerging Asian markets.

Capcom Profits Surge 73% on Catalog Sales, 'Resident Evil' Hype

Capcom reported net income jumped 72.8% to $179.9 million for the six months ended September 30, driven by strong catalog sales and anticipation for February's Resident Evil Requiem. Operating profit nearly doubled, rising 90.8%. Street Fighter 6 surpassed five million units, bolstered by its Nintendo Switch 2 release, while Monster Hunter catalog sales reached 22.85 million units.

Amazon Cuts 14,000 Corporate Jobs, Scales Back Gaming Division

Amazon is eliminating approximately 14,000 corporate roles to reduce bureaucracy and refocus resources, the company announced. Cuts span human resources, operations, devices, and Amazon Web Services. The gaming division faces significant reductions, with Amazon scaling back big-budget titles and ending content updates for its successful MMO New World. Affected employees have 90 days to find internal positions or receive severance packages.

Tencent's 'Honor of Kings' Hits 260 Million Monthly Users

Level Infinite's Honor of Kings has surpassed 260 million global monthly active users, with its Chinese server alone reaching 139 million daily players. The milestone sets a new record for one of gaming's highest user counts, exceeding the title's previous 100 million daily player mark from 2024. Recent community-driven updates include real-time voice translation and customizable avatars.

⚔️Side Quest

🤣Laugh:

📺 Watch: Santa Monica Studios Senior Character Artist Jared Chavez breaks down landing game industry jobs. From building portfolio fundamentals to acing multi-stage interviews and negotiating offers, this is the insider playbook aspiring character artists need. Particularly valuable: why following application requirements precisely matters more than you think.

🎮 Play: The Outer Worlds 2 delivers exactly what fans wanted: bigger maps, richer exploration, and memorable companions. While weapon balance falters, the atmosphere nails that cozy space-RPG blend of Mass Effect's humor and Fallout's weirdness. Perfect for marathon sessions where you lose track of time. Just you, coffee, and countless side quests.

📚 Read: This former Amazon VP's LinkedIn post makes for an interesting read in retrospect. His candid admission about how Amazon failed against Steam despite being 250x bigger reveals crucial lessons about customer validation versus raw scale. Particularly prescient given recent layoffs and New World's shutdown, proof that building without understanding user switching costs leads nowhere.

💡Did You Know

Nvidia has shattered valuation records, becoming worth more than Amazon and Saudi Aramco combined. The AI chipmaker reached an astounding $5.17 trillion market cap in October 2025, also exceeding Meta, Tesla, and Berkshire Hathaway together. Nvidia's journey from $1 trillion (May 2023) to $5 trillion in just 2.5 years represents one of the fastest wealth accumulations in corporate history. Only Apple and Microsoft currently compete in its stratosphere, with all three rotating between the world's most valuable companies.

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