Pixel P&L: Nazara Cash Ready, FTC Ends Fight, Elden Ring Movie

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:

• Nazara Technologies eyes more acquisitions with ₹700 crores in cash after a 30% stock surge — learn their expansion strategy below.

• The FTC officially abandons its challenge to Microsoft's $68.7 billion Activision deal.

• FromSoftware partners with A24 to adapt Elden Ring into a feature film with director Alex Garland.

• Sony reportedly cancels all marketing for Bungie's Marathon shooter — signaling potential delays below.

• Tencent's Level Infinite partners with Invest Qatar to develop the country's gaming industry and establish it as a regional hub.

Let's get into it.

Nazara Technologies Eyes More Acquisitions After 30% Stock Surge

Indian gaming company Nazara Technologies is positioned for further acquisitions with ₹700 crores in cash following recent deals, Joint Managing Director and CEO Nitesh Mittersain said in an interview with CNBC-TV18, as the company's stock surged nearly 30% this month.

Mittersain discussed the company's recent ₹247 crore acquisition of UK publisher Curve Games, projecting 15-20% year-over-year growth for the business within two to three years. Despite Curve's recent revenue declines due to post-Covid normalization, he highlighted its strong 35-40% EBITDA margins and popular intellectual property catalog.

The company launched its "Big Brother" mobile game globally yesterday through subsidiary Fusebox Games, following the success of "Love Island," which generates approximately ₹200 crores annually. Nazara plans to launch "Big Boss" in India within three months, targeting eight local languages.

With a pending ₹495 crore preferential placement expected next month, Nazara will maintain significant cash reserves for continued expansion in global gaming studios. Mittersain emphasized the company's focus on doubling down on core gaming business through strategic acquisitions and intellectual property licensing deals.

FTC Abandons Challenge to Microsoft's $68.7 Billion Activision Deal

The Federal Trade Commission officially dismissed its complaint against Microsoft.'s acquisition of Activision Blizzard, ending a prolonged regulatory battle over the $68.7 billion gaming merger.

The FTC issued an order dismissing the case following its unsuccessful appeal to the 9th Circuit Court of Appeals earlier this month. "The commission has determined that the public interest is best served by dismissing the administrative litigation of the case," the agency said.

Microsoft President Brad Smith hailed the decision as a "victory for players across the country and for common sense in Washington D.C." on social media, expressing gratitude for the FTC's announcement.

The tech giant completed its Activision acquisition in January 2022, despite the FTC's attempts to block the deal over concerns about competition in cloud gaming and subscription services. The 9th Circuit rejected the FTC's challenge on May 8, ruling the agency failed to demonstrate sufficient evidence for its antitrust claims.

⚡Quick Bytes

FromSoftware, A24 Partner on 'Elden Ring' Film Adaptation

FromSoftware has partnered with A24 to adapt its hit video game "Elden Ring" into a feature film. "Ex Machina" director Alex Garland will helm the project, with author George R.R. Martin serving as producer after contributing to the game's worldbuilding. The collaboration follows A24's broader push into gaming adaptations, including an upcoming "Death Stranding" movie.

Tencent's Level Infinite Partners with Invest Qatar to Develop Gaming Industry

Tencent's Level Infinite signed a memorandum of understanding with Invest Qatar to grow the country's gaming sector. The partnership will focus on joint initiatives, talent development, and establishing Qatar as a regional digital entertainment hub, aligning with the nation's Vision 2030 economic diversification goals and leveraging its young, tech-savvy population.

Sony Reportedly Cancels Marketing for Bungie's Marathon, Signaling Potential Delay

Sony has reportedly canceled all paid marketing for Bungie's upcoming shooter Marathon, according to Colin Moriarty's Sacred Symbols+ podcast, citing overseas market sources. The decision comes amid a troubled development cycle marked by art plagiarism controversies and poor alpha test reception. Neither Sony nor Bungie has officially confirmed the marketing cancellation.

⚔️Side Quest

📺 Watch: A pessimistic take on why major gaming companies' decisions are setting up an industry crash, while smaller studios prove there's a better path forward that gamers can actively support.

🎮 Play: JDM: Japanese Drift Master is a solid indie love letter to Need for Speed Underground that delivers authentic Japanese drift culture and manga-style storytelling with tight physics and atmospheric narrow streets. 

📚 Read: How AI agents and voice interfaces could reshape player interaction beyond traditional screens, potentially creating new opportunities for immersive gaming experiences.

💡Did You Know

When CD Projekt Red pitched The Witcher 1 to BioWare's co-founders during development, their demo was a disaster. With only 15 people on the team, CDPR delivered such a poor presentation that when they boldly declared they wanted to "create the best RPG game ever," BioWare could only respond with an awkward "We'll call you back."

Surprisingly, BioWare actually did call back. Despite the terrible pitch meeting, they were impressed enough by CDPR's ambitious vision to provide them with the Aurora Engine from Neverwinter Nights. That small Polish studio with big dreams eventually delivered on their promise with The Witcher franchise.

📜 Quote of the Day

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