Pixel P&L: Krafton Growth, Sony's $464M Bandai Namco Stake, Tencent Lawsuit

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:

• Krafton posted robust first-half results with revenue climbing 11.5% to $1.1 billion.

• Sony invests $464 million in Bandai Namco. 

• Payment processors including Visa and Mastercard forced Steam and Itch.io to remove hundreds of adult games.

• Sony sues Tencent over alleged Horizon game clone, claiming Light of Motiram is a "slavish clone."

• Mythical Games' blockchain soccer title FIFA Rivals hits 1 million downloads and records 5 million matches as Web3 gaming finds its footing. 

Let's get into it.

Korean Gaming Giant Krafton Reports Strong First-Half Growth

Korean gaming publisher Krafton Inc. posted robust first-half results, with revenue climbing 11.5% to ₩1.54 trillion ($1.1 billion) as its flagship battle royale franchise continued to drive growth across platforms.

The Seoul-based company, known for PlayerUnknown's Battlegrounds, saw net profit rise 9.5% to ₩703 billion ($505 million) for the six months ended June 30. Mobile gaming dominated revenue at ₩960 billion ($690 million), while PC contributed ₩543 billion ($390 million) and console a modest ₩33 billion ($23 million).

Krafton credited PC growth to PUBG: Battlegrounds' April launch of its "Contender" character upgrade system. Mobile growth was driven by Battlegrounds Mobile India, which expanded through strategic partnerships with Hero Motorcycles, Sting Energy Drink, and Jio Telecom, featuring localized content and co-marketing initiatives from its Bengaluru office.

The company's life-simulation game Inzoi, positioned as a competitor to Electronic Arts' The Sims, became the fastest-selling Korean premium title to surpass one million units. Krafton has been diversifying through acquisitions, purchasing adtech firm Neptune and US developer Eleventh Hour Games while investing in Japan's ADK Group.

Sony Takes $464 Million Stake in Bandai Namco in Strategic Entertainment Push

Sony announced that it will acquire a 2.5% stake in entertainment conglomerate Bandai Namco Holdings for approximately 68 billion yen ($464 million), marking a significant expansion of the companies' longstanding collaboration.

The PlayStation maker will purchase 16 million shares as part of a broader strategic partnership aimed at leveraging intellectual property across gaming, anime, and merchandising. While the investment represents a substantial commitment, it falls short of giving Sony controlling influence over the multimedia giant.

The partnership extends beyond traditional gaming collaborations, focusing on content production and distribution through Sony's anime platforms including Crunchyroll and Funimation. Bandai Namco controls lucrative licenses for popular franchises including Dragon Ball, Naruto, and Demon Slayer.

"The two companies intend to implement initiatives including the expansion of works as well as products and services based on IP developed by Bandai Namco," Sony said in a release, highlighting plans for joint development of anime, manga, and experiential entertainment.

⚡️Quick Bytes

Skyesports Launches Pan-India Gaming Festival Series

Skyesports announced Gaming Mahotsav, a touring pop culture festival combining gaming, anime, cosplay, and regional entertainment across six Indian cities. The series debuts August 30-31 in Chennai as "Gaming Thiruvizha," with each edition incorporating local language and culture. Tickets are exclusively available through hyperlocal platform KYN. The festival features LAN tournaments, cosplay competitions, creator showcases, and an under-16 chess championship, targeting India's expanding youth entertainment market. The festival launch comes months after harassment allegations surfaced against company executives in April 2025.

Mythical Games' FIFA Rivals Hits 1 Million Downloads

Mythical Games' blockchain soccer game FIFA Rivals surpassed one million downloads weeks after launch, becoming the company's third Web3 title to reach this milestone. The game recorded five million matches and 16 million goals in its early phase, demonstrating significant user engagement in blockchain gaming's sports category. Mythical Games is leveraging the success with a community giveaway featuring rare digital collectibles.

Payment Processors Force Gaming Platforms to Remove Adult Content

Major payment companies including Visa, Mastercard and Stripe reportedly pressured gaming platforms Steam and Itch.io to remove hundreds of adult games following demands from Australian advocacy group Collective Shout. The campaign prompted Itch.io to temporarily block all adult content from its marketplace, while Steam removed hundreds of titles. Elon Musk criticized the payment processors' content control, with over 147,000 people signing a petition opposing the restrictions.

Sony Sues Tencent Over Alleged Horizon Game Clone

Sony has filed a copyright lawsuit against Tencent, alleging the Chinese gaming giant's upcoming Light of Motiram is a "slavish clone" of Sony's Horizon franchise. Sony seeks to block the game's release, claiming it features identical elements including a red-headed female protagonist fighting robotic animals in a post-apocalyptic setting. The suit follows Tencent's rejected collaboration pitch and licensing attempts for the Horizon intellectual property.

⚔️Side Quest

📺 Listen: This candid interview with Zaccie, a monster balance designer at Grinding Gear Games, offers fascinating insights into Path of Exile's development process. From explaining how boss difficulty is determined through "vibes" and spreadsheets to discussing the collaborative nature of boss design, Zaccie provides an entertaining and honest look behind the scenes of game balance decisions.

🎮 Play: Shogun Showdown is an elegant turn-based roguelike that makes every move feel genius. Swap positions with enemies to create devastating combos, backstab opponents, and chain attacks with tactical precision. Currently 50% off on Steam, this polished gem combines roguelite with fluid martial arts combat that's impossible to put down.

📚 Read: Ever wondered how payment processors are pressuring game platforms like Steam and Itch.io to remove content, threatening artistic expression in gaming? NYU's Naomi Clark explains how these policies endanger innovative indie games that tackle serious topics like trauma, identity, and relationships, potentially stifling the medium's creative evolution and accessibility.

💡Did You Know

At Gen Con 2023, two New York men pulled off a brazen $195,000 heist by simply using a pallet jack to wheel 115 boxes of Magic: The Gathering and D&D cards out of the Indianapolis Convention Center. Thomas Dunbar and Andrew Giaume had registered as attendees months earlier, then changed their names online to fake identities after receiving badges. The thieves sold the stolen merchandise to an unsuspecting buyer for just $4,000 - who later discovered the theft through news coverage and voluntarily contacted authorities through their attorney to return the cards, leading to the suspects' arrest.

📜 Quote of the Day

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