Pixel P&L: Supreme Court Gaming Hearing, Riot Debunks Rumors, Krafton Acquisition

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:

• Karnataka defends its controversial online gaming restrictions before the Supreme Court, arguing states must curb gambling addiction.

• Riot Games officially debunks global VALORANT Mobile launch rumors, clarifying recent footage shows China's beta test only.

• Elden Ring's Shadow of the Erdtree expansion hits 10 million sales as the franchise surpasses 45 million total copies.

• Krafton acquires Last Epoch developer Eleventh Hour Games for $96 million to expand beyond battle royale.

• A new study reveals 42% of parents believe gaming companies fail to protect children online, with highest concerns among parents of younger kids. 

Let's get into it.

Karnataka Defends Online Gaming Restrictions in Supreme Court

Karnataka defended its controversial online gaming restrictions before the Supreme Court, arguing the state has constitutional authority to curb gambling-related harm among citizens.

Additional Advocate General Prateek K Chadha told the apex court that Karnataka must address "vices of gaming addiction" that lead to economic hardship and enable fraudulent activities. The state is appealing a 2022 Karnataka High Court ruling that struck down provisions of the 2021 Karnataka Police (Amendment) Act restricting skill-based online games involving betting.

Chadha cited rising youth indebtedness, addiction patterns, and loan-sharking linked to online gaming as public health emergencies. He noted teenagers from lower-income families gambling borrowed money on fantasy sports apps, causing family financial distress and driving some to suicidal thoughts.

The state argued no meaningful distinction exists between online gaming and traditional betting, particularly in fantasy leagues requiring multiple player performance predictions. Karnataka's 2021 law specifically targets real money gaming apps and fantasy sports platforms where players wager on uncertain outcomes, while traditional video games and skill-based games without monetary stakes remain unaffected.

The case continues next week before an expected Supreme Court verdict.

Riot Games Dismisses Global VALORANT Mobile Launch Rumors

Riot Games' Publishing Lead Dave Shinn has debunked circulating claims about a global version of VALORANT Mobile, clarifying that recent English-language gameplay videos show China's beta test, not a worldwide release.

"I'm excited to see the excitement for the CN beta. To be clear: if there was a 'new global build' out there, you'd have heard about it through VAL channels. Don't get scammed," Shinn posted on X, addressing speculation fueled by English-supported gameplay footage.

The tactical shooter remains exclusively focused on China, where Riot partners with local developer Lightspeed Studios. Head of VALORANT Studios Anna Donlon previously explained the strategy: "China has one of the largest and most competitive mobile FPS communities in the world."

The Chinese version, expected to launch by end-2025, will feature 16 agents and eight maps, including two mobile-exclusive locations. A replay system will be available at launch, addressing a key feature request from the mobile gaming community.

Global fans face an indefinite wait as Riot prioritizes establishing the game locally before international expansion.

⚡️Quick Bytes

Elden Ring Expansion Sells 10 Million Copies as Franchise Surpasses 45 Million

Bandai Namco announced that Elden Ring's Shadow of the Erdtree expansion has sold 10 million copies, achieving a one-in-three attach rate as the base game reaches 30 million sales. The multiplayer spinoff Elden Ring Nightreign has moved 5 million copies since its May 30 launch, demonstrating the franchise's commercial momentum.

Krafton Acquires Last Epoch Developer for $96 Million

Krafton purchased Eleventh Hour Games, creator of action RPG Last Epoch, for $96 million to expand its portfolio. The Reddit-born studio has sold over three million copies since launching in 2024. Krafton will support console expansion while maintaining the developer's creative autonomy and leadership structure.

42% of Parents Say Gaming Companies Fail to Protect Children Online

A PlaySafe ID study (via pocketgamer.biz) found 42% of parents believe video game companies inadequately protect children online, with concern highest among parents of 4-9 year-olds. Sixty percent fear harmful adult contact through games. The findings coincide with the UK's Online Safety Act, which mandates child protection measures or fines up to $24.4 million.

⚔️Side Quest

📺 Listen: This podcast features game developer Zaiver Nelson Jr. discussing Strange Scaffold's unconventional approach of frequent small releases and "radical transparency" with players. Essential listening for understanding alternative perspectives on game development that challenge the dominant AAA industry model and advocate for more creative freedom and player empowerment.

🎮 Play: Ghost Watchers offers thrilling cooperative ghost hunting with friends using various detection tools across haunted locations. While it delivers genuine scares and solid graphics as a Phasmophobia alternative, expect some bugs and repetitive gameplay. Despite technical issues, it's worth playing for horror fans seeking spooky multiplayer experiences.

📚 Read: This article from After Babel presents an extremely critical perspective on modern gaming platforms, arguing that games like Roblox and Fortnite function as exploitative "digital amusement parks" that harm children. While representing one end of the debate spectrum, it's valuable for understanding how some advocacy groups view the gaming industry's business model evolution.

💡Did You Know

In 2010, rapper Eminem achieved a remarkable Donkey Kong high score of 465,800 points, complete with photographic evidence. This impressive feat would have placed him within the top 30 players worldwide at the time, showcasing serious arcade gaming skills beyond his musical talents. However, the competitive retro gaming scene has evolved dramatically over the past decade. As of March 2023, that same score now ranks 191st globally.

📜 Quote of the Day

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