Pixel P&L: India Esports Added 730,000 Tournament Players in a Single Year

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 esports revenue dropped 7.5% in 2025, but tournament participation jumped to 2.8 million.

• Epic Games cuts 1,000+ jobs as Fortnite engagement slows.

• Crimson Desert sold 3 million copies in five days despite mixed reviews.

• GodLike and Skyesports signed an MoU with Maharashtra Cyber to build competitive gaming infrastructure across the state.

• PlayStation shuts down Dark Outlaw Games, its second studio closure in two months.

Let's get into it.

India's Esports Revenue Fell 7.5% in 2025, but Tournament Participation Hit 2.8 Million

India's esports segment posted INR12 billion in revenue in 2025, down 7.5% from INR13 billion the prior year, according to the EY India Media & Entertainment report. The decline was triggered by a pullback in global sponsor ad spending and reduced investment from Indian money gaming brands, which were among esports' largest backers before the August 2025 ban on real-money gaming.

Despite the revenue drop, participation and infrastructure metrics grew across the board. Tournament participation rose to 2.8 million from 2.07 million in 2024. The number of professional esports teams increased to 41 from 36, and prominent titles grew to 23 from 17, with Indian-made games FAU-G and Indus Battle Royale entering competitive rotation. Live and non-live broadcast hours reached 9,500 across 18 platforms, up from 7,400 the year before.

Average minute audience, however, fell to 204 million from 287 million, which the report attributes to a shift toward livestreaming qualifier stages rather than main events. The share of women in the esports fan base also dipped to 22% from 25%, driven by a male viewership skew toward core competitive titles.

On the regulatory front, the Promotion and Regulation of Online Gaming Act formally recognized esports as a distinct competitive discipline, separate from money gaming. Multiple state governments, including Karnataka, Tamil Nadu, Rajasthan and Bihar, launched dedicated esports initiatives and championships. Ved Bamb became India's first esports world champion at the Pokemon GO World Championship in 2025.

EY expects esports to rebound from 2026, with prize pools projected to reach INR255 million and participation forecast at 3.14 million.

Epic Games Cuts More Than 1,000 Jobs, Citing Fortnite Revenue Decline

Epic Games is laying off more than 1,000 employees after what CEO Tim Sweeney called a "downturn in Fortnite engagement" that left the company spending well beyond its revenue.

In a note to staff, Sweeney said the cuts, paired with over $500 million in savings from reduced contracting, marketing, and open roles, would put Epic "in a more stable place." He attributed the decision to slower industry growth, weaker consumer spending, rising costs, and lower console sales compared to the prior generation.

Sweeney said the layoffs "aren't related to AI" and that affected employees would receive at least four months of base pay, six months of healthcare coverage, and accelerated stock options through January 2027.

The move follows Epic's September 2023 round of cuts, when it eliminated more than 800 roles. Last week, the company raised Fortnite's in-game currency prices, citing higher operating costs.

⚡️Quick Bytes

GodLike, Skyesports Sign MoU With Maharashtra Cyber for Esports Development

GodLike Esports and Skyesports signed a memorandum of understanding with Maharashtra Cyber on March 23 to build competitive gaming infrastructure across the state. Skyesports will organize tournaments and leagues, while GodLike will run grassroots mentorship through its pro-player network. The partnership targets India's upcoming appearances at the Esports World Cup and 2026 Asian Games.

Hybe India Launches National Auditions to Identify Music Talent

Hybe India is holding auditions across ten Indian cities to find aspiring music acts for development under its "multi-home, multi-genre" strategy. The search, open to Indian nationals and diaspora, will run both online and in person. Sponsors include H&M, Samsung, Snapchat, and Shoppers Stop, with BookMyShow as ticketing partner. Eligibility criteria and dates have not yet been announced.

PlayStation Shuts Down Dark Outlaw Games, Laying Off Around 50

Sony Interactive Entertainment has closed Dark Outlaw Games, a studio founded in 2025 by former Treyarch co-studio head Jason Blundell. The closure, reported by journalist Jason Schreier, affects around 50 employees, including staff in PlayStation's mobile development arm. Dark Outlaw is the second studio SIE has shuttered in two months, following the closure of Bluepoint Games in February.

Crimson Desert Sells 3 Million Copies in Five Days Despite Mixed Reviews

Pearl Abyss said its open-world action game Crimson Desert sold 3 million copies worldwide in its first five days following a March 19 launch, including 2 million on day one. Steam user reviews have since climbed from "mixed" to "very positive" after the studio addressed control complaints and reduced difficulty. Pearl Abyss stock has fallen roughly 40% since launch despite the sales figures.

⚔️Side Quest

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💡Did You Know

The MVP prize at a new Street Fighter 6 tournament in Japan is a blood pressure monitor. The Legacy Cup, organized by Dr. REKKA, a licensed doctor and fighting game community figure, is designed specifically for players aged 40 and older, with sponsors providing age-conscious prizes like Vitamin D supplements, oral care products, and frozen meals. The tournament filled its initial 128-player cap in half a day and has since expanded to 512 entrants. Dr. REKKA plans to offer medical commentary during match breaks, framing competitive play as a health activity for aging players.

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