Pixel P&L: Krafton Commits $90M to Become "AI-First" Gaming Company

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:

• Krafton, the PUBG publisher, pivots to an "AI-first" strategy with a $90M investment.

• Honor of Kings maps out its 2026 esports calendar with four major tournaments as it battles for mobile MOBA dominance.

• Roblox challenges Iraq's platform ban, calling safety concerns "based on outdated understanding."

• Microsoft clarifies its Gaming Copilot only captures screenshots during active use after privacy concerns.

• Capcom maintains a pay-per-view plan for Street Fighter tournaments despite fan backlash. 

Let's get into it.

Krafton Pivots to AI-First Strategy With $90 Million Investment

Krafton, the publisher behind Battlegrounds Mobile India, PlayerUnknown's Battlegrounds, and Subnautica, announced plans to restructure as an "AI-first" company, investing $90 million in the transformation.

The Seoul-based firm will spend $69.5 million on a GPU cluster to support "agentic AI" development, with an additional $20.8 million annually starting 2026 for employee AI tools. The company plans to reorganize its human resources and operations around artificial intelligence.

"Members will focus on creative activities and complex problem solving," said CEO Kim Chang-han, promising the shift would "expand creative attempts centered on player experience."

The move comes amid growing unease about generative AI in game development. Nearly half of game developers report AI tools at their workplaces, while 84% express concerns about their use, according to the latest Game Developers Conference survey. Critics argue tools like Midjourney threaten professional artists' livelihoods and use copyrighted work without permission.

Honor of Kings Maps Out 2026 Esports Calendar With Four Major Tournaments

Level Infinite unveiled its 2026 Honor of Kings esports roadmap, maintaining four cross-regional tournaments as the mobile game continues its international push.

The schedule mirrors 2025's structure, with regional leagues feeding into the King World Championship mid-season event and the King International Championship year-end finale. The main adjustment moves the Honor of Kings Nation Clash to June or July, ahead of the KWC.

Regional competitions will return across Western and Eastern markets, plus dedicated leagues in the Philippines, Indonesia, Malaysia, and Brazil. While Level Infinite committed $15 million to Honor of Kings esports in 2025, next year's investment figure remains undisclosed.

The announcement precedes the 2025 International Championship, scheduled November 14-18 in the Philippines with a $1 million prize pool. The top finishers will advance to China's Challenger Cup.

Honor of Kings reported surpassing 260 million monthly active users in 2025, including its Chinese version and Arena of Valor, as it challenges Mobile Legends and Pokémon UNITE for mobile MOBA dominance.

⚡️Quick Bytes

Roblox Challenges Iraq Ban Over Safety Claims

Roblox contested Iraq's platform ban, calling the government's safety concerns "based on an outdated understanding." The company disabled Arabic-language chat features earlier this year across Middle Eastern countries. Iraq joins Algeria, China, Qatar, and others in blocking access. Roblox said claims of misuse are "inaccurate" given the suspended communication features.

Microsoft Says Gaming Copilot Only Captures Screenshots During Active Use

Microsoft clarified its Gaming Copilot feature captures gameplay screenshots solely during active AI interaction, following privacy concerns from users. The company stated screenshots aren't used for AI training, though text interactions may be. Controversy emerged after claims the beta feature automatically captured NDA-protected content and transmitted data to Microsoft servers.

Capcom Maintains Pay-Per-View Plan for Street Fighter Tournaments Despite Pricing Delay

Capcom confirmed it will charge viewers to watch March 2026 Street Fighter tournament finals despite postponing pricing details after fan backlash. The publisher initially proposed $27-$40 fees, citing "sustainable" esports growth. Pay-per-view tickets launch November 12 as planned. Director Takayuki Nakayama said developers only learned of the monetization decision at Tokyo Game Show.

⚔️Side Quest

🤣Laugh:

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💡Did You Know

The Matrix’s directors, The Wachowskis, personally approached legendary game designer Hideo Kojima to create a video game in 1999 for the franchise, shortly after the film's release. The filmmakers were huge fans of Kojima's work and met with him at Konami's headquarters alongside their concept artist Geoff Darrow. However, Konami executive Kazumi Kitaue immediately shut down the collaboration, wanting Kojima to focus on Metal Gear Solid 2 instead. Ironically, MGS2 would go on to feature Matrix-inspired elements like wall-running. The Matrix license eventually went to Shiny Entertainment, who developed Enter the Matrix and The Path of Neo instead.

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