“Investors want clarity, not grey zones", Nitish Mittersain of Nazara on Online Gaming Act

As Nazara Technologies marks 25 years in the gaming industry, the company has unveiled a fresh identity and logo symbolizing its ambition to merge technology, creativity, and interactive entertainment. In a conversation with Storyboard18, Nitish Mittersain, CEO and Joint Managing Director of Nazara Technologies, discusses the idea behind the new logo, the company’s growth roadmap, AI investments, and how it views India’s evolving gaming regulations.

What inspired Nazara’s new logo and brand identity?

The vision behind the new identity comes from the world we live in today — everyone’s constantly on the move, chasing something in this fast-paced, tech-driven life. At Nazara, we wanted to offer people a way to pause and de-stress through interactive experiences that bring a little touch of magic into their lives.

That’s the idea behind our new logo — the “N” shaped like a magic wand — and our new tagline, “Enter Magic.” Through our ecosystem of digital experiences, whether mobile, console, VR, or PC, we aim to deliver that magical touch to players around the world.

How does this rebranding tie into Nazara’s broader vision going forward?

This isn’t just about a new logo. It’s about reimagining how we approach the gaming ecosystem as a whole. Over the last few years, we’ve expanded globally through acquisitions, focusing on building IP-led content across multiple platforms.

Going forward, we’re doubling down on that strategy — you’ll see larger acquisitions, stronger partnerships, and more global collaborations. Nazara today has a solid reputation not just in India but globally, and many gaming companies are keen to work with us.

What kind of companies or regions are you targeting for these acquisitions?

Our primary focus is on game studios that have strong IPs — either original or licensed — with proven scale, profitability, and talented teams. Geographically, we’re looking across Europe, the US, Vietnam, and of course, India.

We’re not restricting ourselves to one region — our goal is to bring high-quality IP-led gaming experiences to a global audience while continuing to build for the Indian market, which remains strategic for us.

Are there any new sectors you’re planning to enter beyond gaming and esports?

Horizontally, we’re investing significantly in AI. We’ve already set up a Center of Excellence for AI within the company. We see it as critical — not optional — for a tech-driven entertainment business like ours.

AI will touch every part of what we do, from game development to user engagement. Beyond that, within our existing verticals, there’s immense room to scale — easily 10–20x from where we are today. So our focus remains on maximizing potential within our core areas rather than diversifying away.

How much you’re investing in AI initiatives?

We haven’t put out a specific number, but our approach is simple — we’ll invest whatever it takes. This is a binary choice: either we lead with AI or risk falling behind.

How exactly do you plan to integrate AI into your operations?

We’re currently working on several use cases. In game development, AI can improve graphics, design, coding, and QA processes. It can also make user acquisition more efficient by personalizing ad campaigns and optimizing cost per activation.

We’re using AI for deeper data analytics and insights across business functions. And in the gameplay itself, AI can make experiences more personalized — from in-game interactions to AI-driven characters in multiplayer environments. These are our key focus areas right now.

What’s the current revenue mix across Nazara’s gaming businesses?

Broadly, our revenues come from three streams — in-app purchases (IAP), subscriptions, and advertising. Currently, around 80–85% of our revenue is from IAPs and subscriptions, and about 15% from advertising.

However, we’re looking to scale our in-app ads business, particularly through our publishing platform in India. Over the next two to three years, we expect all three revenue streams to strengthen further.

Which revenue stream do you see as most promising for the future?

Subscription is the most stable and recurring form of revenue — it gives us predictability. Products like Pitopia perform very well under that model.

In-app purchases thrive in markets like the US where users have higher purchasing power, while in-app advertising will be crucial in scaling up in markets like India and other emerging economies. We see a healthy balance emerging across all three.

Any changes in your India strategy for advertising revenue?

Yes, we’re focusing more on direct sales, leveraging the strength of our existing portfolio companies. For instance, Sportskeeda already has a strong direct brand reach. We’re looking to tap such channels and build more direct advertiser relationships, moving slightly away from purely programmatic models.

Nazara’s investment in PokerBaazi was impacted by the recent regulatory changes. How do you see the new online gaming law shaping up?

We haven’t formally written off that investment yet, but we plan to take a conservative approach and do so soon.

The new regulation has been a double-edged sword. For the real-money gaming industry, it has caused disruption. But the government’s intent to recognize and regulate the sector is a positive step. Importantly, it has reaffirmed the government’s support for social gaming and esports — even the Prime Minister has spoken about gaming as a means of spreading India’s soft power globally.

The key is clarity. For too long, the industry operated in grey zones, which discouraged investors. A clear framework — even if stringent — is better than uncertainty.

But many in the video gaming industry have expressed concerns about the new law. How do you view that debate?

It’s natural for stakeholders to have differing views. The draft rules invited feedback, and that’s a healthy process. The goal should be to reach a balanced framework that promotes responsible gaming while supporting industry growth.

Dialogue between government and industry is essential. It’s better to iron out differences now rather than face major setbacks later. Regulation done right can only help the sector mature faster.

Esports has been one of Nazara’s strongholds through Nodwin. Are you planning to increase your stake or expand further in this segment?

Nodwin has reached significant scale and has marquee investors like Krafton and Sony. Nazara remains its largest shareholder, and we’re not looking to increase our stake right now.

Our focus, from a capital allocation perspective, is on IP-led gaming studios. However, we’ve also invested in Stan, an esports-driven community platform, where we currently hold a 15% stake. The business is growing well, and such consumer-facing opportunities will continue to interest us.

Finally, how do you see 2026 and beyond shaping up for Nazara and the gaming ecosystem?

We’re very excited. This rebranding is not just cosmetic — it’s a statement of intent. We’re upgrading the way we approach every part of the ecosystem, from technology and creativity to partnerships and player engagement.

The Indian gaming sector is going through an important phase of evolution. Despite short-term challenges due to regulation, I believe there’s tremendous opportunity ahead. 2026 could well be a breakout year for the industry — and for Nazara.