Pixel P&L: India’s Karnataka Puts Online Gaming Rules on Hold for Committee Input

Welcome to another Pixel P&L edition. This issue takes 4 minutes to read. If you only have one, here are the 5 most important things:

• Karnataka state will decide on online gaming regulation based on a committee report expected in September.

• Acer announces India will host the 2026 Asia Pacific Predator League with $400,000 in prize money.

• Square Enix reports 15% revenue drop and 54.8% profit decline as gaming division struggles.

• BLAST partners with Singapore Tourism Board for multi-year esports events deal.

• Netflix reports 4.4 billion hours of anime streamed with Naruto leading at 40 million hours viewed. 

Let's get into it.

Indian State Karnataka to Decide on Online Gaming Regulation Based on Committee Report

Karnataka Home Minister G. Parameshwara announced Tuesday that the state government will determine its approach to regulating online gaming based on recommendations from a committee led by IPS officer Pranab Mohanty.

The committee, established in April, is expected to submit its report in September, Parameshwara told the Assembly in response to BJP's S. Suresh Kumar. The discussion primarily concerns online games involving monetary stakes (like real money games or poker), rather than traditional video games.

Parameshwara said the government has held meetings with online gaming companies to seek their cooperation in regulating the sector. He noted concerns about gaming addiction among youth and the need for regulatory clarity.

The state previously amended the Karnataka Police Act in 2021 to prohibit certain online games, but the High Court struck down the law in 2022. The government has appealed this decision to the Supreme Court.

Acer's Esports Tournament to Be Held in India in 2026

Acer announced that India will host the seventh Asia Pacific Predator League in 2026, as the country seeks to establish itself as a regional esports hub.

The tournament will feature teams from over 15 countries competing in Dota 2 and VALORANT, with $400,000 in total prize money. The event represents the latest expansion for the league, which has grown from eight participating countries when it launched in 2018.

Andrew Hou, President of Acer Pan Asia Pacific, said gaming serves as a movement connecting communities across cultures. The company has distributed more than $2.15 million in prize money since the tournament's inception.

Harish Kohli, President of Acer India, noted India's position among the world's fastest-growing gaming markets. The selection of India as host reflects the country's increasing prominence in the esports sector.

Regional qualifying rounds are set to begin across Asia Pacific markets. Indian teams will compete from September 1-9, with a national finale scheduled for October 11. Qualifying teams will advance to the Grand Finals scheduled for January 2026.

⚡️Quick Bytes

Square Enix Reports 15% Revenue Drop in First Quarter

Square Enix reported net sales of ¥59.2 billion ($401 million) for the quarter ended June 30, down 15.2% year-over-year, as its video game division struggled with weaker new title performance. The Japanese gaming company's profit fell 54.8% to ¥4.8 billion ($32.5 million). Digital entertainment revenue declined 25% to ¥32.9 billion, with mobile and HD games segments both posting significant drops compared to last year's stronger releases.

BLAST Partners with Singapore Tourism Board for Multi-Year Deal

Tournament organizer BLAST signed a multi-year partnership with Singapore Tourism Board to host four additional esports events in the country following November's BLAST Slam IV Dota 2 tournament. The deal builds on BLAST's expansion across Asia after its Counter-Strike World Final sold out Singapore's Resorts World Convention Centre earlier this year, featuring a $1 million prize pool.

Naruto Dominates Netflix Anime Viewing, Report Shows

Netflix reported 4.4 billion hours of anime content streamed in the first half of 2025, up 11% year-over-year, with Naruto leading at 40 million hours viewed. The 2002 series and its franchise totaled 51 million hours including Boruto. Studio Ghibli films ranked second with 39 million views, followed by Detective Conan, Pokémon, and One Piece, according to Collider.

⚔️Side Quest

📺 Watch: Renee Haramman from Dome Keeper breaks down why games fail (unwanted, misaligned, or overdeveloped) and introduces "validation points" for early feedback. The video covers appeal versus fun, leveraging content creators for organic growth, and scaling studios with innovative "mini-teams." Practical, experience-backed insights on commercial indie development.

🎮 Play: Double Dragon Gaiden masterfully modernizes the arcade brawler formula with randomized bosses, dynamic difficulty, and tons of unlockable characters including former enemies. Snappy controls, excellent retro visuals, and reasonable pricing make this perfect for genre veterans and newcomers alike. With constant free content updates, it's an easy recommendation for low-commitment action fun.

📚 Read: I came across this Konvoy analysis on why K-pop's 150 million global fans represent gaming's next major opportunity. The piece makes compelling points about K-pop's digital innovation and fan monetization, but I am skeptical about whether the genre's strength in physical merchandise and curated parasocial relationships can authentically translate to gaming's interactive, player-driven environments. Still worth reading for its insights on cross-industry convergence.

💡Did You Know

From 2008 to 2013, tech journalist Andy Baio conducted an experiment with his son Eliot: playing through video game history in chronological order, starting from 1970s arcade classics. Beginning when Eliot turned four with Pac-Man and Galaxian, they progressed through each gaming generation (Atari 2600, NES, SNES, N64, and beyond), compressing 25 years of gaming evolution into four years. The experiment worked brilliantly. By age eight, Eliot had beaten Spelunky's notoriously difficult "Hell" ending, possibly becoming the youngest person ever to achieve this feat. More importantly, his early exposure to lo-fi graphics made him appreciate retro aesthetics and focus on gameplay over flashy visuals, developing a deep love for indie games like FTL and Nuclear Throne that might turn off other kids his age.

📜 Quote of the Day

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