Pixel P&L: Indian Gaming Industry Wants Tax Incentives, AVGC Funding in Budget

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:

• Indian gaming executives call for tax relief and AVGC funding ahead of the Union Budget.

• Mobile Legends: Bang Bang announced as the first title for the Esports Nations Cup in Riyadh.

• Bruno Mars's Roblox concert draws 12.8 million concurrent users, setting a single-artist record.

• US Congressional Labor Caucus asks FTC to review EA's $55 billion acquisition by Saudi Arabia's PIF.

• Gaming incubator LVL Zero opens applications for its first cohort.

Let's get into it.

Indian Gaming Industry Pushes for Tax Relief, Infrastructure Support Ahead of Budget

Indian gaming and esports executives are calling for targeted tax incentives and policy clarity in the upcoming Union Budget as the industry looks to move beyond consumption toward content creation.

Akshat Rathee, managing director of NODWIN Gaming, said the sector needs "fair and differentiated taxation for esports on par with traditional sports" and easier access to banking services for gaming businesses. He also called for targeted funding under the AVGC framework to support Indian game development and original IP creation. Rathee emphasized practical enablers over large announcements to help the ecosystem scale sustainably.

Nitish Mittersain, joint managing director of Nazara Technologies, highlighted support for domestic game development and original IP creation as priorities. The sector needs "a stable and predictable policy framework" to drive investor confidence, Mittersain said. He noted India's opportunity to create globally successful gaming IPs using its cultural heritage and mythology.

Animesh Agarwal, co-founder of S8UL Esports, said the budget should commit fiscal support for training infrastructure and grassroots competition development. He also sought greater clarity on budget allocation for gaming within the AVGC framework, along with support for creator-focused upskilling and production facilities.

Investment-focused executives echoed the call for ecosystem support. Anuj Tandon, partner at BITKRAFT Ventures, wants tax incentives for global gaming companies establishing Indian operations to upgrade local talent. Sagar Nair of LVL Zero Incubator pushed for regulatory and taxation clarity across mobile, PC, and console gaming to unlock long-term capital and attract global publishing partnerships. Both emphasized India's potential as a game development hub with proper budgetary commitment toward the AVGC-XR mission.

Vishal Parekh, chief operating officer at CyberPowerPC India, recommended treating esports prize money taxation in line with traditional sports and strengthening esports integration within Khelo India programs to boost grassroots development.

⚡️Quick Bytes

Mobile Legends Announced as First Game for Esports Nations Cup

Mobile Legends: Bang Bang will be the first game announced for the inaugural Esports Nations Cup in Riyadh, with 32 national teams competing November 23-29, 2026. The Esports World Cup Foundation said developer MOONTON Games joined the initiative in November. The event will feature 16 titles and offer a $20 million fund for National Team Partners.

Gaming Incubator LVL Zero Opens Applications for First Cohort

Gaming incubator LVL Zero opened applications for its inaugural cohort, selecting 10 Indian startups for a 100-day program. Each team will receive $10,000 in equity-free funding. The program targets companies building mid-core game studios, gaming infrastructure and AI-native tools, culminating in a Demo Day for investors and publishers.

Bruno Mars Concert on Roblox Draws 12.8 Million Concurrent Users

Bruno Mars's virtual concert in Roblox's Steal A Brainrot mode attracted 12.8 million concurrent users, which the platform called a single-artist record. Mars performed "I Just Might" and "Locked Out of Heaven" using standard character design. The figure falls below Fortnite's 14.3 million concurrent users for its Eminem collaboration in 2024.

US Congressional Labor Caucus Urges FTC Review of Electronic Arts Acquisition

The Congressional Labor Caucus asked the Federal Trade Commission to review the proposed $55 billion acquisition of Electronic Arts by Saudi Arabia's Public Investment Fund. The letter, signed by 46 House Democrats and backed by the Communications Workers of America, cited concerns about potential layoffs given the deal's $20 billion debt financing.

⚔️Side Quest

🤣Laugh:

📺 Watch: Razer CEO Min-Liang Tan gets grilled about putting a holographic anime companion powered by Grok on gamers' desks. The Decoder interview tackles trust and safety, the AI hype cycle, and why gamers hate the slop Tan's betting $600 million on.

🎮 Play: Fable Anniversary became my refresher after the reboot trailer dropped. It's not deep, and the world feels structured rather than open, but that's the point, this is an entry-level RPG that welcomes newcomers instead of gatekeeping them. Runs perfectly on Steam Deck. If you're new to the genre or just want something uncomplicated, this still works in 2026.

📚 Read: Gen Z writer Maddie Agne dismantles the myth that her generation loves AI slop after a former Square Enix director claimed young gamers embrace it. She unpacks why developers keep using Gen Z as justification for cutting corners with generative AI, and why that narrative alienates the exact audience they're trying to reach.

💡Did You Know

In 1983, Coca-Cola commissioned Atari to create a private video game for its sales convention. The result was Pepsi Invaders, a modified version of Space Invaders where players shot down the letters "P-E-P-S-I" instead of aliens. Atari produced exactly 125 cartridges, which Coca-Cola distributed exclusively to its salespeople as promotional gifts. The game never hit retail shelves, making it one of the rarest Atari 2600 titles. Collectors occasionally find copies at auctions, where they sell for thousands of dollars. The game is sometimes mistakenly called "Coke Wins" or "Coke Invaders," but its official title was Pepsi Invaders, turning the cola wars into literal arcade warfare.

📜 Quote of the Day

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