Pixel P&L: Embracer’s Revenue Slips, Workforce Halves

Today’s Pixel P&L examines Embracer Group’s sales slump, Krafton India’s addition of educational maps to Battlegrounds Mobile India, the opening of bids for esports franchise slots, and Tencent’s expansion of Honor of Kings streaming to Rednote.

/ Embracer Group Reports Declining Sales, Cuts Workforce Amid Restructuring

Embracer Group’s net sales fell 3% year-over-year in Q3 to SEK 7.4 billion ($681.5 million), as its PC and console revenue plunged 23% to SEK 2.6 billion ($239.6 million). Mobile sales, however, showed signs of recovery, rising 2% to SEK 1.7 billion ($156.5 million), though mobile EBIT declined 34.5% to SEK 400 million ($36.7 million). The company attributed mobile’s rebound to CrazyLabs’ improved performance after acquiring publishing rights to Bus Frenzy - Traffic Jam.

Embracer’s restructuring continued with a sharp decline in development staff, dropping nearly 50% from 9,896 in December 2023 to 5,757 a year later. The total workforce shrank from 12,695 to 7,873.

CEO Lars Wingefors highlighted Embracer’s upcoming game slate, with 10 AAA titles planned over three years. “We are excited about our future and our current games pipeline which we believe is one of the most well invested in the industry. We currently have more than 5,000 game developers working on our pipeline of upcoming games,” he said.

KRAFTON India Expands BGMI with Educational Maps

KRAFTON India has introduced a new set of World of Wonder (WoW) mode maps in Battlegrounds Mobile India (BGMI), incorporating life skills education into its gaming ecosystem. The new maps, including Fire Rescue – Be a Hero, Environmental Crisis – Save Verdantia, and Road Safety Rally, turn in-game challenges into simulations of real-world scenarios. Players engage in fire evacuation drills, sustainability efforts, and traffic rule compliance, reflecting an effort to expand gaming’s role beyond recreation.

EEF Opens Bidding for Esports Franchise Slots in New League

The Emirates Esports Federation (EEF) and ITW Universe have launched a bidding process for franchise slots in the upcoming E Gaming League (EGL), offering a chance for investors to enter the UAE’s esports market. The league will feature 24 teams and a $1 million per-season prize pool. While the franchise fee remains undisclosed, bidders must pay a $2,000 non-refundable submission fee. Franchise owners will receive a 60% revenue share and a perpetual license. The first season begins May 22, with player registration opening in March and a draft set for April.

🧐 On Our Radar

Tencent Expands KPL Streaming, Eyes Broader Audience With Rednote

Tencent has partnered with Xiaohongshu (aka Rednote), making it an official streaming platform for Honor of Kings’ King Pro League (KPL). The move goes beyond content distribution. It’s a strategic effort to engage a growing but underrepresented segment in esports: women.

The numbers highlight the shift. Tencent reports (via The Esports Advocate) that more than 50% of KPL viewers are female, a significant contrast to traditional esports, which have long skewed male. Rednote, with over 300 million monthly active users and a user base that is more than 70% women, offers Tencent a platform tailor-made to engage this audience. Tencent, already holding a 13.19% stake in Rednote, is doubling down on this opportunity.

KPL 2024 was one of the most-watched esports tournaments globally, drawing 100 million livestream viewers and 30,000 in-person attendees, according to Nikkei Asia. To continue expanding, Tencent is strategically repositioning the event as a broader entertainment product, targeting an audience that has historically been overlooked.

💡 Did You Know?

Nintendo popularized the term "video game console" to protect its brand name. In the late 1980s and early 1990s, the company dominated the gaming industry so completely that many consumers referred to any gaming system, whether it was a Sega Genesis or an Atari, as a "Nintendo." This posed a risk of genericide, where a trademark becomes too commonly used and loses its legal protection (like "Kleenex" for tissues). To prevent this, Nintendo pushed for more generic industry terms like "video game console" in marketing and press materials, ensuring "Nintendo" remained a distinct and protected brand name.

📜 Quote of the Day

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