Pixel P&L: Zupee Pivots to Esports After India's Real-Money Gaming Ban

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:

• Zupee pivots to esports after India's real-money gaming ban, targeting traditional games like Ludo for global tournaments.

• Former Gameskraft CFO accused of embezzling ₹270 crore through unauthorized trading while creating fake statements to cover losses.

• UK's Online Safety Act forces game studios to delay social features, with startups facing the same regulatory burden as major platforms.

• Former Enthusiast Gaming CMO launches new agency XDOTG, targeting Gen Z through creator networks on Roblox and Fortnite.

• Talon Esports expands Visa partnership across all global rosters. 

Let's get into it.

Zupee Pivots to Esports After India's Online Money Gaming Ban

Gaming platform Zupee announced its entry into esports, marking another strategic shift following India's prohibition on real-money gaming that has upended the industry.

The Bangalore-based company, valued at $600 million, plans to transform traditional Indian games like Ludo, Carrom and Chess into global esports formats while leveraging its newly launched entertainment division, Zupee Studio, which serves over 200 million registered users with bite-sized drama content.

"India doesn't just have to participate in this movement, we can lead it," said founder Dilsher Singh Malhi, citing the country's 750 million internet users and gaming heritage as competitive advantages.

The pivot comes as Zupee reported its first profitable year in fiscal 2024, earning ₹146 crore after tax on revenues of ₹1,123 crore. However, the company recently laid off 170 employees, representing 30% of its workforce, due to regulatory pressures from the real-money gaming ban.

Zupee Studio will anchor the esports strategy through live tournament streaming and localized broadcasting, while creating employment opportunities in content creation and shoutcasting across India's emerging digital sports ecosystem.

Former Gameskraft CFO Accused of ₹270 Crore Fraud

Online money gaming company Gameskraft Technologies filed a police complaint against its former Group Chief Financial Officer Ramesh Prabhu, accusing him of embezzling ₹270 crore over five years through unauthorized futures and options trading, according to Moneycontrol.

Prabhu, 47, sent a "voluntary" confession email on March 5 admitting to diverting company funds for personal F&O investments that resulted in losses exceeding ₹250 crore. He claimed no other employees were involved in the scheme.

A First Information Report filed September 9 in Bengaluru charges Prabhu with theft, criminal breach of trust, and forgery under India's Bharatiya Nyaya Sanhita. The company's internal investigation revealed he executed ₹231 crore in unauthorized transactions between fiscal 2020 and 2025, using a personal RBL Bank account while creating fake mutual fund statements to conceal the trades.

The fraud compounds challenges facing Bengaluru-based Gameskraft, which recently discontinued its real-money gaming operations following India's blanket ban.

⚡️Quick Bytes

UK Online Safety Act Forces Game Studios to Rethink Features

Game studios are reconsidering in-game social features following the UK's Online Safety Act implementation in July, according to London law firm Wiggin. Senior associate Isabel Davies told The Game Business that studios are delaying chat and clan functionality to focus on core gameplay first. The act requires user-to-user services to conduct risk assessments regardless of company size, creating equal regulatory burden for startups and major platforms.

Former Enthusiast Gaming CMO Launches Gaming Agency

Former Enthusiast Gaming Chief Marketing Officer Alex Gonzalez launched XDOTG, a new gaming marketing agency, alongside former company executives. The firm targets Gen Z and Gen Alpha audiences through creator networks and in-game content for platforms like Roblox and Fortnite. Previous clients include Coca-Cola, Toyota, and Nintendo. The launch follows Enthusiast Gaming's divestiture of Luminosity Gaming to Vertiqal Studios earlier this month.

Talon Esports Renews Visa Partnership

Talon Esports renewed its partnership with Visa, expanding coverage from two teams to all global rosters including League of Legends and Valorant. Financial terms weren't disclosed.

⚔️Side Quest

📺 Listen: Lovelace CEO Kayla Comalli discusses AI's potential to revolutionize gaming through generated worlds and dynamic stories. While the vision sounds compelling, questions remain about whether AI can truly deliver meaningful gameplay experiences or just generate impressive-looking content. Worth hearing for both the ambitious promises and unaddressed challenges.

🎮 Play: At this discount, Suzerain offers exceptional value for patient players who enjoy narrative depth over action. This text-heavy political simulator successfully creates genuine tension through dialogue choices alone, a rare achievement. The leisurely pacing and accessible codex make complex political maneuvering approachable. However, if you prefer visual feedback or faster gameplay, this might feel static despite its elegant design.

📚 Read: Aftermath’s Isaiah Colbert explores how the flag of One Piece protagonists, The Straw Hat Pirates, became a symbol of youth-led resistance in Indonesia, Nepal, and France. He masterfully connects real-world protests to One Piece's deeply political themes, arguing that the series' anti-authoritarian message resonates beyond entertainment. Essential reading for understanding how anime culture intersects with contemporary political movements and youth activism.

💡Did You Know

PlayStation's physical game sales dropped to just 3 percent of revenue last year, the lowest in company history. This marks a steep decline from 6 percent in 2020, steadily falling each year as digital dominates. Despite fewer first-party releases driving the drop, Sony still earned $945 million from discs. This trend may influence the PS6's rumored all-digital design with optional disc drives, potentially marking physical gaming's final generation.

📜 Quote of the Day

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