Examining India’s RMG ban and Implications for the Video Games Industry
On August 22, 2025, the Indian government passed the Promotion and Regulation of Online Gaming (PROG) Bill, effectively banning real money gaming (RMG) in the country. RMG refers to games where players can wager and win real money. The Act also aims to ‘encourage healthy alternatives’ by promoting esports as a ‘legitimate sport’, while providing government support to games that ‘build skills and cultural values’. For our part, Niko Partners has consistently separated RMG from video games revenue in India, and we continue to maintain that these are separate business models, not least because of RMG’s associations with gambling, which is an entirely separate industry.
Read our latest blog post to understand more about the RMG ban and what it means for the video games industry.
Savvy annual Games report includes data from Niko Partners
Savvy Games Group has released their 2024 annual report which includes market data from Niko Partners, showing that Saudi Arabia’s video game market is set to grow from $1.19 billion in 2024 to reach $1.64 billion in 2028. This is at an 8.2% CAGR, driven by steady gains across console (8.27%), mobile (7.29%), and PC (4.01%). At the heart of this growth is Saudi Arabia’s National Gaming and Esports Strategy, part of Vision 2030, which aims to contribute $13.3 billion to the GDP and create nearly 39,000 jobs in the games and esports sector by 2030.
Minecraft China Edition surpasses 1.25 million PCCU
Minecraft China Edition has surpassed 1.25 million peak concurrent users according to NetEase Games, the publisher of the title in China. Minecraft has over 700 million registered accounts in the country and remains one of the top sandbox titles in the nation. To celebrate the milestone, NetEase launched a login bonus campaign, rewarding players with cosmetics and in-game currencies. In parallel, the company confirmed plans to enable full cross-platform functionality between mobile and PC versions, with public testing scheduled for Q4 2025.
Why this matters: NetEase has been able to successfully localize Minecraft for the China market, transforming it from a paid game into a F2P game with exclusive content and monetization features tailored to Chinese players. It competes with Mini World in China, developed by domestic firm Miniwan Technology. While Roblox had previously launched in China via Tencent, the game was shut down at the end of 2021 due to unknown reasons and therefore does not have a notable presence in the country beyond its educational toolset.
Link to original article (Chinese) →
Indian video game companies launch new association for gaming and esports
Nine leading Indian game developers and publishers have formed the Indian Game Publishers and Developers Association (IGPDA). The new industry body aims to promote original Indian IP, develop skills across the AVGC sector, and elevate India’s role in global AAA game development. The IGPDA will also advocate for the industry on regulatory, investment, and infrastructure fronts. It has already proposed a partnership with the Maharashtra government to position Mumbai as a global games hub. The move follows the passing of India’s Online Gaming Bill, which formally separates video games from gambling and RMG platforms.
Why this matters: IGPDA’s launch comes right after the India Online Gaming Bill was signed, signaling a desire by game developers in India to distinguish the video game sector from the gambling and RMG sector which was previously lumped together under the online gaming moniker. It also signals a focus on building a high-quality local industry that is globally competitive and fully supported by the government. The association’s unified voice can drive policy reform, state incentives, and infrastructure investment, allowing for talent to develop in the country and for culturally rooted video game IP to emerge. This adds to the other two associations, GDAI and IDGS.
Valorant Mobile off to strong start in China
Valorant Mobile is off to a strong start in China, extending the success of the PC game to mobile. The game is currently performing within our expectations, debuting at #1 on the iOS game download chart and maintaining a top 10 position on the iOS game revenue chart in its first week. The mobile game had over 70 million pre-registrations prior to launch, driven by multiple beta tests and promotional activities, indicating high demand for the release.
Why this matters: Valorant Mobile was the #6 most viewed mobile game on Chinese game live streaming platforms during its launch week, racking up a cumulative 6 million viewers across DouYu, Huya and Bilibili. Our data shows that Valorant (PC) was the #4 most viewed title in H1 2025, behind Delta Force at #3. We believe that Valorant Mobile will extend the success of the Valorant IP in China, just as League of Legends and Teamfight Tactics (Battle of Golden Spatula in China) standalone mobile games did.
Tencent Lightspeed opens second studio in Japan
Lightspeed Japan Studio, the Tencent-owned developer led by former Capcom veteran Hideaki Itsuno, has opened a second branch in Osaka and onboarded three high-profile ex-Capcom developers. The announcement comes less than a year after the studio's founding in November 2024, following Itsuno's departure from Capcom after a 30-year career shaping franchises like Devil May Cry and Dragon's Dogma. The Osaka expansion adds to Lightspeed's existing Tokyo base and brings the studio's total headcount to approximately 40 staff, one-third of whom are former Capcom employees.
Why this matters: The new location shows that Tencent is continuing to fund internal expansion of its owned studios outside China, at a time when other Chinese video game firms have started downsizing or limiting new investment. The move reinforces Tencent's commitment to global expansion via owned studios, building on Lightspeed's original expansion to LA. Lightspeed Japan is currently working on a next-generation cross-platform AAA action title based on a new original IP, with active recruitment underway for both Tokyo and Osaka locations.
Tencent responds to Honor of Kings matchmaking allegations
On August 12, 2025, a notable court case unfolded at the Shenzhen Nanshan District People's Court, where veteran lawyer and Honor of Kings (HoK) player Sun Qianhe challenged Tencent over its matchmaking algorithm, sparking a nationwide debate over algorithmic transparency in competitive games. Tencent, through an official public statement on August 26, denied these claims and detailed ongoing improvements made to HoK's matchmaking system over recent years.
Why this matters: Gamers have long speculated that matchmaking systems for certain games may manipulate win/loss patterns to artificially maintain a certain win rate to keep players emotionally invested. While this court case is not set to continue, Tencent has reiterated that visible stats such as win rate and match history do not factor into matchmaking decisions. Future updates will incorporate player feedback and place greater emphasis on visible ranks to restore player trust in competitive integrity. Importantly, Tencent announced plans to launch a co-creation initiative, inviting players to contribute to future matchmaking reforms.
Link to original article (Chinese) →
Saudi Esports Federation and Merak Capital sign MoU
The Saudi Esports Federation and Merak Capital have announced that they have entered a strategic partnership via the signing of a MoU. The goal is to accelerate the country's video game and esports sector with the collaboration focusing on training programs, global partnerships and event participation, while attracting international studios to Saudi Arabia. The partnership aligns with the goals of Saudi Arabia’s National Gaming and Esports Strategy.
Why this matters: Merak Capital has emerged as a key player in Saudi Arabia’s video game industry after launching an $80 million fund, part of the Gaming and Esports Financing Programme led by the National Development Fund with the Social Development Bank, to launch the Merak Gaming Fund. Niko Partners research shows that the GCC is now home to 24.7 million esports fans, with Saudi Arabia alone accounting for 55% of this audience.
Impact46 continues to invest in local gaming companies as it commits $53 Million to Baloot dev Kammelna
Saudi-based VC firm Impact46 have announced that they are investing over 200 million riyals ($53 million) into 'Baloot' developer, local Damman-based studio, Kammelna. Last year, Impact46 was given nearly $80 million to invest in local gaming companies as a part of an initiative by the Saudi Arabia National Development Fund and Social Development Bank. They've given nearly $6.6 million to five studios, but this is one of the largest, single investments into an individual Saudi based game studio.
Why this matters: This is the largest investment in a Saudi based studio to date and accounts for two thirds of Impact46’s total fund, demonstrating the confidence that the VC has in the studio. Baloot is a very popular card game in the region, and mobile recreations of the game have had a lot of success. Kammelna claims that their version has over 6 million downloads, and over 1 million active monthly users. The title is the #12 highest grossing mobile game in the country year to date according to Sensor Tower, which tracks iOS and Google Play revenue.
Niko Partners offers the deepest, most trusted data and insights into the Asia, Middle East, and North African video game and esports markets. Our customers rely on our semi-annual market models, research reports, NikoIQ online intelligence, and custom consulting to make the smartest business decisions.
Vietnamese users reportedly shift time from social apps to entertainment, games
A study by Moloco, Sensor Tower, and Singular reports that, in 2023-2024, Vietnamese users cut time on social media apps by 1.3 billion hours while adding 2.3 billion to entertainment and 640 million to games, with overall app use still growing (1% CAGR for 2021-2024) despite slowdowns in mature markets. The report highlights a spend-attention gap: 88% of mobile ad budgets remain with Google and Meta even as user time shifts elsewhere, and it estimates up to 214% better return (on day 30) if spend diversifies beyond Big Tech.
Why this matters: For Vietnam’s mobile market, these habits point to more time spent in lean-back entertainment and gaming environments, favoring formats like rewarded ads, episodic content, and light-touch subscriptions over pure feed monetization. Niko Partners data shows that Vietnam’s video game market is set to reach $681 million this year, up 4.0% YoY. Mobile is the leading platform with over 50 million gamers and accounting for approximately 60% of total player spending.
Link to original article (Vietnamese) →
Roblox used as a platform to stage protest against Indonesia’s government
Following the unrest in Indonesia since August 25’s protest, the country’s Roblox players also reportedly use the game as a platform to stage. In-game protesters were seen raising placards with sentences used on the protests, mostly in relations to criticizing the country’s House of Representatives (DPR). Protesters also recreated DPR’s building as the location for the protest.
Why this matters: While Roblox has been under fire both in Indonesia and other countries in the region due to concerns related to child safety, the platform is also a popular place where gamers meet and create communities. Apart from protests, the game has been known to be used to host a plethora of activities in the country, including musical concert, public lecture, and talent show.
Link to original article (Indonesian) →
Events
Malaysia MPL Finals
Kuala Lumpur, Malaysia
September 12-15, 2025
Attendee: Edward Tien
Tokyo Game Show
Tokyo, Japan
September 25-28, 2025
Attendee: Lisa Hanson, Narinder Kapur