Pixel P&L: Gaming Claims 70% of India's High-Value Digital Entertainment Spending

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:

• India's gaming sector now commands 70% of digital entertainment wallet share, with women comprising 45% of gamers and explosive growth from non-metro cities.

• Krafton posts record revenue of $600.8M, driven by BGMI's 480 million users in India.

• Nintendo Switch 2 shatters console launch records with 10.36 million units sold.

• Sega Sammy reports sales decline despite strong Sonic and Persona performance.

• The NBA 2K League relaunches with an open competition format, letting fans of any skill level compete alongside pros. 

Let's get into it.

India's Gaming Sector Emerges as Top Digital Entertainment Spender

Gaming has emerged as India's highest-spending digital entertainment category, commanding 70% of wallet share for purchases above 1,000 rupees, according to new research from Lumikai, an interactive media venture capital fund.

The firm's consumer study of nearly 3,000 mobile users reveals gaming's transformation, with women now comprising 45% of gamers and 60% hailing from non-metro regions. Device diversity is expanding rapidly: 30% of gamers use gaming PCs and 22% own consoles.

Casual and mid-core mobile games dominate both consumption and monetization, overtaking real-money gaming. Titles like Ludo King, Candy Crush, Free Fire, and BGMI lead gameplay, while BGMI, Free Fire and Clash of Clans top revenue charts.

Critical to monetization: 33% of gamers make in-game purchases, primarily for cosmetic upgrades and power-ups, with UPI driving over 80% of transactions. Notably, 54% of paying users monetize within one week of installation, and 22% pay at least weekly.

Krafton Posts Record Quarterly Revenue on Strong India Gaming Growth

South Korean game publisher Krafton reported record third-quarter revenue of 870.6 billion won ($600.8 million), up 21% year-over-year, driven by robust performance across its PUBG franchise and expanding presence in India.

The company's flagship battle royale title BGMI reached 480 million cumulative users in India, posting 15% year-over-year growth in average paying users and 34% increase in cumulative users. Krafton has invested 300 billion won ($207 million) in Indian gaming businesses as of November 2025.

PC and console revenue surged 61% quarter-over-quarter to 353.9 billion won ($244.2 million), while mobile revenue increased 14% to 488.5 billion won ($337 million). Operating profit reached 348.6 billion won ($240.5 million), up 42% from the previous quarter.

The Seoul-based company has already diversified beyond battle royale games, entering India's cricket gaming market through acquisitions and new title development. Krafton plans to launch three new games targeting Indian players by fiscal 2026 while developing Palworld Mobile for a fourth-quarter alpha test.

⚡️Quick Bytes

Sega Sammy Reports Sales Decline Despite Strong Sonic, Persona Performance

Sega Sammy posted net sales of 428.9 billion yen ($2.79 billion) for the fiscal year ending March 2025, down 8.5% year-over-year, despite strong performance from Sonic X Shadow Generations and Metaphor: ReFantazio. Operating income fell 16.8% to 48.1 billion yen ($313 million). The entertainment contents segment, including video games, animation and toys, generated over 75% of total sales. Mobile games continue outearning console and PC combined, a trend expected through 2028. Sonic Frontiers reached 4.57 million cumulative units, while the Persona 5 series hit 13 million.

Nintendo Switch 2 Sets Console Launch Record With 10.36 Million Units Sold

Nintendo Switch 2 has become the biggest console launch in history, selling 10.36 million units through September, the company reported. The figure surpasses the original Switch's 4.7 million, PlayStation 4's 7.5 million, and PlayStation 5's 7.8 million units during comparable launch periods. Nintendo raised its fiscal year hardware forecast to 19 million units from 15 million and increased its operating profit projection 15% to approximately $2.4 billion. The Americas accounted for 35% of Switch 2 sales at 3.68 million units, while Japan contributed 22.6% with 2.35 million units, constrained by limited stock.

NBA 2K League Relaunches With Open Competition Format

The NBA 2K League unveiled a reimagined format blending competitive gaming with entertainment, marking a strategic shift from traditional esports. The relaunched league, operated by NBA Take-Two Media joint venture, features six NBA teams represented by creator and player duos. A "Next Fan Up" open ladder launching November 16 allows players of any skill level to compete alongside professionals, departing from the league's exclusive structure. Sports creator Jesse "Jesser" Riedel, commanding 35 million YouTube followers, joins as Honorary Commissioner. The inaugural season begins with reality series "MyPLAYER Mayhem" on November 5.

⚔️Side Quest

🤣Laugh:

📺 Watch: Rockstar co-founder Dan Houser's thoughts on why he thinks Red Dead Redemption 2 represents gaming's peak. 

🎮 Play: Escape Simulator 2 delivers the best virtual escape room experience with intricate puzzles that oscillate between genius revelations and delightful confusion. The pirate maps showcase exceptional design, while teamwork mechanics create chaotic fun. Improvements over the original include smoother gameplay, complicated puzzles, and robust community map support. Perfect for hours of "aha!" moments and muttered key-hunting frustrations.

📚 Read: GameDeveloper's piece on why bad leadership, not technology, slows game development makes for a great examination of production bottlenecks. “‘Crunch is a consequence of poor planning,’ goes the industry refrain. Poor planning can strike in all manner of ways, not just as a consequence of bad leadership. But when crunch hits, how leaders manage the need for overtime can bring a team together or grind them into the ground.“

💡Did You Know

Ever zoned out and suddenly found a video game map vividly appearing in your mind's eye? Maybe that Skyrim landscape or your favorite Call of Duty level just materialized out of nowhere? That's your hippocampus at work, acting as your brain's personal movie projector. Researchers studying people with hippocampal damage made a fascinating discovery: while these individuals still mind-wandered constantly, they couldn't conjure those rich visual scenes. No random game maps, no childhood bedrooms, no imagined futures. Instead, their wandering thoughts stayed firmly in the present, relying purely on words and facts. This proves your hippocampus does far more than store memories. It's the engine generating those spontaneous mental images that pop up uninvited throughout your day.

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