Pixel P&L: Winzo Founders Arrested by India’s ED

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:

• WinZO founders arrested by India's Enforcement Directorate on money laundering charges involving $600M in frozen assets.

• Nintendo acquires Bandai Namco Studios Singapore, continuing its aggressive M&A strategy to strengthen development capacity.

• Xbox Game Pass cloud streaming surges 45% year-over-year as Microsoft expands into India and other emerging markets.

• Epic CEO Tim Sweeney pushes back against Steam's AI disclosure policy, saying AI will soon be integral to most game production.

• JioBLAST appoints industry veterans to lead India's growing esports content push. 

Let's get into it.

ED Arrests WinZO Founders on Money Laundering Charges

India's Enforcement Directorate arrested WinZO founders Saumya Singh Rathore and Paavan Nanda in Bengaluru over alleged money laundering violations.

The agency claims WinZO retained $5 million in player funds that should have been refunded after India banned real-money gaming in August. ED investigators also allege the company used algorithms disguised as human opponents in cash games without disclosing this to users.

The arrests followed raids on WinZO and competitor Gamezkraft last week. Authorities froze approximately $600 million in assets, including bonds and mutual funds held by WinZO.

ED officials claim the company operated real-money games in the US, Brazil, and Germany through its India-based platform, diverting funds overseas through purported shell companies. Investigators identified $55 million in a US bank account linked to these operations.

WinZO rejected the allegations, stating fairness and transparency remain central to its platform operations and affirming compliance with applicable laws.

Nintendo to Acquire Bandai Namco Studios Singapore

Nintendo will purchase 80% of Bandai Namco Studios Singapore on April 1, 2026, with plans to acquire remaining shares later. The developer will become Nintendo Studios Singapore following the transaction.

Founded in 2013, the Singapore studio worked on Ace Combat 7, Soul Calibur 6, and Tekken 7 and 8, while providing development support for Nintendo's Splatoon 3. The company recently released Hirogami with Bandai Namco Studios Malaysia.

Nintendo cited the studio's expertise in creating in-game art assets and existing business relationship as key factors. The acquisition follows Nintendo President Shuntaro Furukawa's statement that the company would pursue further deals to strengthen development capacity.

The traditionally conservative acquirer has accelerated purchases recently, buying Luigi's Mansion developer Next Level Games in 2021, Shiver Entertainment in 2024, and completing its acquisition of Monolith Soft the same year after initially purchasing 80% in 2007.

⚡️Quick Bytes

JioBLAST Appoints Two Vice Presidents for Content and Production

JioBLAST, the Indian esports joint venture between Reliance Jio, BLAST, and RISE Worldwide, has hired Randall Fernandez and Dillip Mohanty as Vice Presidents. Fernandez, formerly Managing Director at Team Vitality India and Country Manager at Sony PlayStation India, will lead IP development and publisher relations. Mohanty joins from Mobile Premier League to oversee live production. The October appointments follow JioBLAST's announcement of the All Stars vs India creator event for Battlegrounds Mobile India, signaling the venture's push to develop original esports content.

Xbox Game Pass Cloud Streaming Hours Rise 45%

Microsoft Gaming CEO Phil Spencer reported Xbox Game Pass cloud streaming hours increased 45% year-over-year, with console players streaming 45% more on consoles and 24% more on other devices. The growth follows Xbox Cloud Gaming's expansion into India, Argentina, and Brazil. Microsoft raised Game Pass Ultimate pricing to $29.99 monthly in October after adding Fortnite Crew and Ubisoft+ Classics access, plus enhanced streaming quality and day-one releases including Call of Duty: Black Ops 7.

Epic CEO Says Steam Shouldn't Label AI-Generated Games

Epic Games CEO Tim Sweeney argued against Steam's policy requiring developers to disclose AI usage, stating the practice "makes no sense" as AI will soon be integral to most game production. Seven percent of Steam games now disclose generative AI use, up from 1.1% in 2024. Sweeney's comments follow controversy over Embark Studios' Arc Raiders using AI voice lines, echoing Nexon's CEO who stated developers should assume all game companies employ AI technology.

⚔️Side Quest

🤣Laugh:

📺 Watch: Ratat delivers a passionate critique of how the attention economy destroyed video game narratives through "theory bait." He traces Five Nights at Freddy's descent from cohesive storytelling to endless lore contradictions, then examines Hello Neighbor and Garden of Banban as cynical IP cash grabs designed for content mills over actual storytelling. A rallying cry against corporate greed.

🎮 Play: Cross Blitz delivers excellent deckbuilding through both campaign and roguelike modes with deep metagame progression. Borrows Hearthstone mechanics while adding lane strategy across 20+ archetypes. Balanced difficulty, gorgeous pixel art, and tons of viable deck combinations 

📚 Read: AI and Games' Tommy Thompson dissects Arc Raiders' AI voice controversy, arguing Embark's TTS system sets dangerous precedent despite compensating actors. While ML-powered animations add value, AI voices deliver inferior quality purely for cost savings. Thompson presents four questions consumers should ask about AI adoption: livelihood impact, talent replacement, quality enhancement, and substitution viability.

💡Did You Know

Lara Croft has earned two Guinness World Records: best-selling video game heroine and most magazine covers for a game character. The British archaeologist has appeared on 2,300 magazine covers as of April 2025, including publications like Newsweek and TIME, and will grace the Guinness World Records Gamer's Edition 2026 cover. Since debuting in 1996's Tomb Raider, Croft has transcended gaming through Hollywood films starring Angelina Jolie and Netflix's animated series. 

📜 Quote of the Day

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