Pixel P&L: Layoffs, Licensing & Lakhs in Prize Pools

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:

• King laid off 200 staff who were replaced by AI tools they developed — learn more below.

• iQOO launches its biggest esports tournament yet with an INR 1 crore prize pool for BGMI.

• Middle East gaming revenue hits $2 billion in 2024, with the region projected to reach $2.8 billion by 2029.

• Roblox debuts a new licensing platform featuring Squid Game, Stranger Things, and other major franchises for creators.

• PSG Esports and Talon extend their partnership for another League of Legends season with Qatar Airways backing. 

Let's get into it.

King Laid off Staff Replaced by AI Tools They Developed, Report Says

Staff at mobile game developer King have been replaced by artificial intelligence tools they helped create, according to anonymous sources cited by mobilegamer.biz. Around 200 employees at the Candy Crush Saga maker were laid off as part of Microsoft's recent redundancies, with the actual figure potentially higher, sources said.

Level designers who spent months developing AI tools for faster level creation have been let go, with the technology now replacing their teams, one staff member told Mobilegamer.biz. The copywriting team has been similarly affected after creating AI tools for content generation. An internal employee survey found morale "in the gutter" following the cuts, according to sources quoted by the site.

King purchased AI firm Peltarion in 2022 and has been experimenting with AI tools for game development. Last year, King's AI Labs head Sahar Asadi told GamesIndustry.biz the company was using AI to playtest Candy Crush Saga, describing the technology as "a co-pilot for designers" and "an assistive tool."

iQOO Launches Esports Tournament with INR 1 Crore Prize Pool

Smartphone manufacturer iQOO announced on Wednesday the launch of its biggest esports tournament in India, the iQOO Battlegrounds Series, featuring a prize pool of INR 1 crore ($115 thousand) for Battlegrounds Mobile India (BGMI).

The tournament will begin qualifying rounds on July 21 for 32 teams across India, with the finale scheduled for August 8-10 in New Delhi. NODWIN Gaming will execute the event, which targets players of the popular battle royale mobile game. "This collaboration is a convergence of performance-driven innovation, grassroots talent development, and world-class tournament execution," said Akshat Rathee, Co-founder and Managing Director of NODWIN Gaming.

iQOO entered the Indian market in 2020 and has positioned itself as a gaming-focused smartphone brand. The company involves esports professionals in product development and has been supporting esports since its inception.

Quick Bytes

Roblox Launches New Licensing Platform for Global Franchises

UGC platform Roblox has launched a new Licensing Platform in partnership with Lionsgate, Netflix, Sega, and Kodansha, allowing developers to use global franchises in their games. Seven intellectual properties, including Squid Game, Stranger Things, and Like A Dragon, are now available for licensed use by eligible creators. The self-serve tool enables IP holders to register their properties, set licensing terms, and collect revenue shares automatically.

Middle East Gaming Revenue Crosses $2 Billion in 2024, Report Shows

Saudi Arabia, UAE, and Egypt generated $2 billion in games revenue in 2024, a 5.4% year-on-year increase, according to Niko Partners. The gaming market across the three countries is forecast to grow to $2.8 billion by 2029 with a 5-year compound annual growth rate of 6.8%, driven by a growing player base of 72 million gamers and higher spending per user.

PSG Esports, Talon Extend Partnership for 2025 League of Legends Season

Paris Saint-Germain Esports and Talon Esports announced Tuesday they will continue their partnership for PSG.Talon's 2025 League of Legends season. The collaboration, which began in 2020, has secured Qatar Airways as front-of-jersey sponsor for the team competing in Riot Games' newly formed League of Legends Championship Pacific. Financial terms were not disclosed.

⚔️Side Quest

📺 Watch: Dive into how ray tracing is transforming game development beyond just shiny reflections. This exploration reveals how dynamic lighting simulation is replacing labor-intensive "baked-in" methods, potentially shortening development cycles while creating more realistic visuals. Learn how advancing GPU tech and tools like Unreal Engine 5's Lumen are democratizing stunning graphics for smaller studios, ushering in a new creative era.

🎮 Play: Looking for a nostalgia hit? Angry Birds Bounce on Apple Arcade might scratch that itch, even though it swaps the classic slingshot for brick-breaker mechanics with rogue-like elements. It's a decent way to revisit those familiar characters and sounds without the same old gameplay. Just don't expect the addictive rush you remember, this one's slower-paced and unlocking new content can feel pretty grindy. 

📚 Read: Discover how a gaming studio achieved a $100 million hybrid-casual hit through an extraordinary creative process of ideating 1,000 game concepts monthly. This interview with Rollic vice president of gaming Utku Erdinç reveals the systematic approach behind turning massive idea generation into commercial success, offering valuable insights into the rapid prototyping and iteration strategies that define today's mobile gaming industry.

💡Did You Know

Comic book creation follows two distinct approaches that shaped the industry. The "DC style" involves writers providing detailed page-by-page descriptions of each panel's artwork, giving artists specific visual directions to follow. In contrast, the "Marvel method" starts with writers creating a basic plot synopsis, then artists interpret and draw the story based on that outline. Only after the artwork is complete does the writer add dialogue and captions to match what was drawn. This Marvel approach, popularized by Stan Lee, allowed for more collaborative storytelling and gave artists greater creative freedom in visual interpretation.

📜 Quote of the Day

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