Pixel P&L: Korean Government Cracks Down on Krafton

BGMI's reign could prove to be a boon and a bane

Vignesh Raghuram
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Pixel P&amp;L

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Good Morning! It’s Wednesday, May 29. Today, we're tackling why BGMI’s iron grip on Indian esports might cause more drama than an Indian soap opera, the Korean government cracking down on KRAFTON for its monetization model, and more.

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BGMI's Stranglehold on Indian Esports: Is a Single Game Putting the Entire Industry at Risk?

In the world of Indian esports, one game reigns supreme: Battlegrounds Mobile India (BGMI). Tournament organizers pitch a variety of thrilling games, but sponsors have eyes for only one. Why? Because BGMI isn't just a game—it's a phenomenon, drawing in massive crowds, skyrocketing viewership, and dominating the competitive scene.

But here's the twist: this all-consuming focus on BGMI might be the industry's biggest gamble. Is Indian esports putting all its eggs in one basket? While BGMI’s success is undeniable, this single-game obsession raises a burning question: Could this dependence spell disaster for the future of Indian esports?

As BGMI continues its reign, the industry must confront the looming risk of stifling diversity and innovation. Aditya dives in to discover why the game’s dominance could be both a blessing and a curse for Indian esports.


Korean Government Probes Krafton’s PUBG for Alleged Probability Manipulation

South Korea’s Fair Trade Commission (FTC) has launched an investigation into allegations of manipulated probability disclosures within Krafton's battle royale title PUBG. On May 28, FTC investigators conducted a thorough on-site inspection at Krafton's headquarters, collecting vital data related to these claims.

The investigation centers on accusations that Krafton misled players about the drop rates of in-game items, potentially causing significant consumer harm. This scrutiny is part of a broader probe into the gaming industry’s transparency regarding "probability items"—game tools whose acquisition is governed by set odds, often leading to repeated purchases driven by chance.

A Krafton spokesperson reportedly commented, "It appears the FTC is conducting a comprehensive review across the gaming sector," but refrained from discussing specific games. The company has committed to fully cooperating with the authorities.

This latest development follows the FTC’s recent inspections of other major gaming companies, including NCSoft’s "Lineage M" and Gravity’s "Ragnarok Online." The increased regulatory attention comes after new laws were enacted in March, requiring game developers to transparently disclose the odds of obtaining various in-game items.


Quick Bytes

Galaxy Racer Shuts Down Dubai HQ Amidst Unpaid Prizes and CEO Disappearance

Dubai-based esports company Galaxy Racer has closed its UAE headquarters, casting doubt on its operational status, according to The Esports Advocate (TEA). The company has yet to pay the $100K USD prize from the HER Galaxy Apex Legends Open and owes $40K to tournament platform LeagueSpot. Founder and CEO Paul Roy’s current location is unknown, with TEA’s sources suggesting he may be in India while Chief of Staff Walid Singer has left Galaxy Racer for a new role at Kids First Group. The status of Galaxy Racer's merger with Riva Technology and Entertainment remains unclear, with no updates since July 2023.

BGIS 2024 Grand Finals Will Take Place in Hyderabad, India

Hyderabad is set to host the Battlegrounds Mobile India Series 2024 (BGIS 2024) LAN Grand Finale, as announced by KRAFTON India. From June 28 to 30, Hall 4 at HITEX Exhibition Center will see 16 elite teams competing for the championship and a massive prize pool of INR 2,00,00,000 (approximately $243,000 USD). 

Indian Esports Platform Gamerji Expands into Southeast Asia

Indian esports tournament platform Gamerji has expanded into Southeast Asia, launching operations in Indonesia and the Philippines. The platform offers eight popular titles, including PUBG Mobile, Free Fire, Mobile Legends: Bang Bang, and VALORANT. New users receive virtual currency and a free three-day subscription. Founded in 2019 and based in Ahmedabad, India, Gamerji hosts over 500 daily tournaments across 22 titles, according to a release.

Microsoft Confirms Call of Duty: Black Ops 6 on Game Pass at Launch

Microsoft announced today that Call of Duty: Black Ops 6 will be available on Game Pass from its launch day. This move highlights the significance of Microsoft's $68.7 billion acquisition of Activision Blizzard in 2023. While Call of Duty is a major draw, this decision raises strategic questions for Microsoft. Game Pass subscriptions have been flagging, partly due to a lack of new, compelling titles. Adding Black Ops 6 could boost subscriptions but might also impact retail sales, posing future challenges for Microsoft's game release strategy.


Did You Know?

The most expensive video game commodity ever sold is Planet Calypso from the MMORPG Entropia Universe. In 2011, it was purchased for a staggering $6 million USD by SEE Virtual Worlds, making it a landmark transaction in the gaming world.

Planet Calypso, a virtual planet within the game, is renowned for its rich resources and economic opportunities, allowing players to earn real-world money through various in-game activities. This virtual real estate investment not only set a record but also showcased the growing intersection of virtual economies and real-world financial markets.


Quote of the Day

It's funny because we're all living in a simulation and free will is a lie."
- Marina, Splatoon 2

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Vignesh has been covering the esports industry for nearly 5 years starting with the early days of the DPC. His industry expertise includes experience in Dota 2, CS:GO and Mobile Esports coverage.