Pixel P&L: TikTok Parent Explores Sale of Mobile Legends Developer to Saudi Arabia

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:

• ByteDance is in talks to sell Mobile Legends developer Moonton Games to Saudi Arabia's Savvy Games Group.

• CD Projekt reported 148% profit growth as Cyberpunk 2077 surpasses 35 million copies sold.

• Embracer sold Arc Games and Cryptic Studios for $30 million as restructuring continues.

• OverActive Media posted 14% revenue growth after exiting Valorant Champions Tour.

• Japanese Film Festival returns to India with AKIRA and eight other films across multiple cities. 

Let's get into it.

ByteDance in Talks to Sell Mobile Legends Developer to Saudi Gaming Group

ByteDance is in early-stage discussions to sell Mobile Legends: Bang Bang developer Moonton Games to Saudi Arabia's Savvy Games Group, Bloomberg reported, citing sources familiar with the matter. The TikTok parent acquired the Shanghai-based studio in 2021 for approximately $4 billion but shelved previous sale plans last year.

The potential transaction aligns with Saudi Arabia's Vision 2030 initiative to diversify investments beyond oil into gaming and entertainment. Savvy Games Group, wholly owned by the kingdom's Public Investment Fund, has assembled a portfolio including SNK Corporation, Scopely, and ESL FACEIT Group, while managing minority stakes in Activision Blizzard and Nintendo.

The talks remain preliminary and may not result in a deal, Bloomberg noted. ByteDance appears willing to divest gaming assets to concentrate on core operations. The PIF recently joined a $55 billion consortium to take Electronic Arts private, though that transaction awaits shareholder approval and regulatory clearance.

CD Projekt Reports Strong Q3 Earnings as Cyberpunk 2077 Surpasses 35 Million Copies

CD Projekt Group reported net profit of 193.5 million zloty ($52.2 million) for Q3 2025, up 148% year-over-year, driven by sustained sales of Cyberpunk 2077. The Polish developer announced its flagship title has now sold 35 million copies, including its Phantom Liberty expansion.

Sales revenue reached 349.1 million zloty ($94.3 million) for the quarter, marking a 53% increase from the prior year. The company's CD Projekt Red division achieved a 63% net profit margin.

The Witcher developer is scaling operations across three studios, with total development staff reaching 851 by October 2025. The company is expanding its Boston studio to support Cyberpunk 2, codenamed Orion, while maintaining work on The Witcher 4 and other projects. Development expenditures totaled 136.6 million zloty ($36.9 million) during the quarter as the company prepares assets for upcoming releases.

⚡️Quick Bytes

Japanese Film Festival Returns to Eight Indian Cities

The Japan Foundation announced the Japanese Film Festival 2025–26, screening nine films across eight Indian cities from December through January. The lineup includes anime classic AKIRA and Teasing Master Takagi-san alongside contemporary dramas. The festival runs December 12–14 in Hyderabad and Pune, concluding January 23–25 in Kolkata. Since launching in India in 2017, JFF has expanded its reach annually, previously featuring Makoto Shinkai retrospectives and RADWIMPS concerts celebrating Japan–India diplomatic relations.

Embracer Sells Arc Games and Cryptic Studios for $30 Million

Embracer Group divested Arc Games and Cryptic Studios to Project Golden Arc, a new entity led by Arc Games management and funded by Hong Kong's XD Inc., for $30 million. The deal includes live service titles Star Trek Online and Neverwinter, though Embracer retains publishing rights to the Remnant franchise and MMO Fellowship, which will transfer to Coffee Stain. The divestment continues Embracer's restructuring following a collapsed $2 billion partnership reportedly with Saudi Arabia's Savvy Games Group, which derailed the Swedish company's expansion strategy under former CEO Lars Wingefors.

OverActive Media Reports 14% Revenue Growth Following Valorant Exit

OverActive Media reported third-quarter revenue of $7.8 million, up 14% year-over-year, as the esports organization refocuses on core franchises following its terminated Valorant Champions Tour EMEA agreement. The company recorded a $3 million comprehensive loss including an $800,000 impairment charge related to the Riot Games partnership exit, which was attributed to competitive and commercial underperformance. OverActive is consolidating operations around League of Legends, Call of Duty, and Free Fire under the unified KOI brand, while launching ActiveVoices, an AI-powered localization platform targeting subscription revenue growth.

⚔️Side Quest

🤣Laugh:

📺 Listen: Insider Gaming interviews Ad Hoc Studios founders Dennis Leonard and Charles Markum on Dispatch's two million copies sold. They discuss prioritizing team stability over profits, benefits of leadership with hands-on development experience, switching to Unreal Engine for seamless cinematic-gameplay integration, and adding late-stage narrative changes like Invisal romance based on player feedback.

🎮 Play: Constance delivers a focused 10-hour metroidvania with Hollow Knight and Celeste inspirations while maintaining distinct identity. Excellent music, art style, and platforming shine alongside simple yet satisfying combat. A well-crafted experience that respects your time without overstaying its welcome. Perfect introduction to the genre. 

📚 Read: Stream Hatchet analyzes Twitch chat sentiment as a predictor of game success, examining Black Myth: Wukong, S.T.A.L.K.E.R. 2, Hogwarts Legacy, and Clair Obscur. Key findings: on-stream sentiment creates echo chambers, technical issues tank post-launch perception, and lesser-known games benefit from positive word-of-mouth spreading beyond their own channels.

💡Did You Know

In 2007, Konami launched a closed beta for an online game based on the anime Gurren Lagann, only to cancel it after just one week. The reason? Downloading the game caused permanent Windows operating system crashes for players. The catastrophic technical failure forced Konami to pull the plug on the project almost immediately, making it one of the shortest-lived beta tests in gaming history. 

📜 Quote of the Day

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