Pixel P&L: Krafton Doubles Down on India, Eyes Long-Term Ecosystem Play

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 doubles down on India with over $200 million invested, calling it a top-three market globally.

• SAG-AFTRA members overwhelmingly approved a new video game contract with 95% support, ending an 11-month strike against major publishers — learn what they won below.

• Russia is considering forcing foreign game companies to partner with domestic publishers, part of Putin's broader push for digital control.

• Microsoft pays publishers between $50,000 and over $50 million per game for Xbox Game Pass content deals, former insider reveals.

• The "Stop Killing Games" initiative went from certain failure to viral success in days, potentially changing how you own games forever — watch the drama unfold below. 

Let's get into it.

Krafton Doubles Down on India as Gaming Market Accelerates

South Korean gaming giant Krafton Inc. is betting big on India's rapidly expanding gaming market, with the country now ranking among the company's top three markets by users and top five by revenue globally.

The maker of popular mobile game Battlegrounds Mobile India has invested over $200 million in the country since 2021 and committed an additional $200 million over the next few years. This year alone, Krafton led a $53 million funding round in payments company Cashfree Payments and invested in audio platform Kuku FM.

"We are not here to launch one or two games, we are here to grow the ecosystem together," said Krafton India CEO Sean Sohn in an interview. The company plans to open a research and development unit in India, expanding its local workforce from 100 to 115-120 employees.

India's gaming industry has seen explosive growth driven by mobile adoption, with gaming becoming mainstream among youth over the past five years. Despite having a much larger population than South Korea, India has only 50,000 game developers compared to South Korea's 120,000-140,000, highlighting significant growth potential in talent development.

Russia Considers Requiring Foreign Games Use Domestic Publishers

Russian officials are weighing new restrictions that would force foreign video game companies to partner with domestic publishers to release titles in the country, Kommersant reported.

The proposal will be discussed at an upcoming meeting between members of President Vladimir Putin's administration and gaming industry representatives. Companies attending must prepare arguments supporting or opposing the tightened publishing requirements.

If approved, the measure would become part of Russia's official gaming industry development roadmap. The scope remains unclear, with the report alternately describing restrictions on all foreign games or specifically targeting online titles.

The initiative builds on Putin's 2023 directive requiring popular foreign games to relocate servers to Russia. That move reflected broader efforts to assert domestic control over digital infrastructure amid geopolitical tensions.

The administration meeting will also address regulatory oversight, anti-piracy measures, and incorporating simulation games into educational curricula. The proposals underscore Russia's push to strengthen its domestic gaming sector while reducing dependence on foreign platforms.

⚡Quick Bytes

SAG-AFTRA Members Approve Deal, Ending 11-Month Video Game Strike

SAG-AFTRA members overwhelmingly approved a new video game contract with 95% support, ending an 11-month strike against major publishers including Activision and Electronic Arts. The agreement delivers immediate 15% pay increases, additional 3% annual raises through 2028, and artificial intelligence protections requiring performer consent for digital replicas. The strike, which began after 98% of members authorized action in September 2023, targeted concerns over AI usage and job security in the gaming industry.

Microsoft Pays Up to $50 Million for Xbox Game Pass Content Deals

Microsoft pays publishers between $50,000 and over $50 million per game for Xbox Game Pass content, according to a former senior business manager who negotiated hundreds of deals. The revelation comes amid industry scrutiny over the subscription service's sustainability following Microsoft's recent layoffs of 9,000 employees, including hundreds from Xbox's gaming division.

⚔️Side Quest

📺 Watch:  Watch how the "Stop Killing Games" initiative went from certain failure to viral success in just days. This video reveals how Twitch drama and World of Warcraft controversies accidentally became the catalyst for a gaming preservation movement that could change how you buy and own games forever. 

🎮 Play: If you're craving a fresh take on the Vampire Survivors formula, this is your game. Yet Another Zombie Survivors delivers everything you love about the genre but with stunning modern graphics that ditch the overused pixel art aesthetic. The tactical team-building mechanics add depth while maintaining that addictive "just one more run" gameplay loop that keeps you coming back for hours.

📚 Read: This compelling Polygon deep-dive reveals how a canceled game led to an indie phenomenon. From creative burnout to a month-long Korean game jam, Aggro Crab and Landfall's collaboration produced a $8 co-op survival game that sold 4.5 million copies, outpacing their previous $30 title. A fascinating case study in sustainable game development and lightning-in-a-bottle success.RetryClaude can make mistakes. Please double-check responses.

💡Did You Know

Microsoft has never made a profit on Xbox console sales, not just the original Xbox, but every generation since 2001. During the Epic Games v. Apple trial, Xbox executive Lori Wright confirmed that Microsoft sells all consoles at a loss, including the latest Xbox Series X and S. The original Xbox reportedly cost Microsoft $4 billion in losses, with manufacturing costs far exceeding retail prices. This "hardware subsidy model" is intentional: consoles act as loss leaders to attract customers, while profits come from game sales, accessories, and subscriptions like Xbox Game Pass, which now has over 18 million subscribers across console, mobile, and PC platforms.

📜 Quote of the Day

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