Pixel P&L: ED Raids Indian RMG Offices Over Alleged Algorithm Rigging

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:

• India's Enforcement Directorate raided real money gaming firms Gameskraft and WinZO over algorithm manipulation allegations.

• AMD graphics card prices set to spike due to memory supply crunch driven by AI hardware demand.

• Call of Duty: Black Ops 7 stumbles with 61% drop in UK physical sales despite Activision's optimism.

• Modern Times Group doubles Q3 revenue to $315.5M, powered by RAID: Shadow Legends' TMNT crossover.

• Roblox mandates age verification globally starting January 2026 to restrict adult-minor communication. 

Let's get into it.

ED Raids Gaming Firms Over Algorithm Manipulation Allegations

India's Enforcement Directorate raided 11 offices belonging to online money gaming operators Gameskraft and WinZO across Bengaluru, Delhi and Gurugram on November 18, according to Moneycontrol.

The searches targeted corporate offices and executives' residences following complaints alleging algorithm manipulation that disadvantaged users. Investigators also discovered cryptocurrency wallets linked to company promoters, suggesting potential money laundering activities, according to reports.

The raids follow India's ban on real-money online gaming, where users deposit funds expecting returns. Both companies have since exited that business segment.

Gameskraft, which operated rummy app Rummyculture, faces separate fraud allegations after filing a complaint against its former CFO for allegedly misappropriating Rs 270.43 crore over five years. WinZO, which offers over 100 games in 15 Indian languages through third-party developers, maintains operations in the United States and Brazil alongside its Indian presence.

AMD Graphics Card Prices Set to Rise on Memory Supply Crunch

AMD plans to implement significant graphics card price increases due to tightening memory supply, according to reports from China.

Industry sources indicate AMD already raised prices for commercial customers in October, though retail prices remained largely stable. The upcoming "second wave" of increases will be more substantial, likely affecting consumer pricing directly.

"AMD's internal communication indicates that the price of graphics memory has risen significantly," according to hardware industry account Lonely City Hardware. The increases will impact both GPUs and graphics memory across AMD's portfolio, including the new Radeon RX 9070 series.

The memory shortage stems from surging AI hardware demand, redirecting manufacturing capacity away from consumer products. Memory manufacturers remain cautious about expanding production, wary of inventory gluts from previous market cycles.

Nvidia cards will likely face similar pressures, according to industry observers. Retailers and manufacturers confirm the trend, suggesting graphics card prices will rise across the board through early 2025.

⚡️Quick Bytes

Call of Duty: Black Ops 7 Faces Rocky Launch Despite Activision's Optimism

Activision's Call of Duty: Black Ops 7 posted a 61% decline in UK physical sales versus its predecessor, while Steam concurrent players dropped from 306,000 to under 100,000. The publisher touted a "great response" despite player complaints about the campaign and AI usage, declining to share specific performance metrics that last year highlighted Black Ops 6's record-breaking opening weekend.

Modern Times Group Doubles Q3 Revenue to $315.5 Million

Swedish gaming conglomerate Modern Times Group reported Q3 net sales of SEK 3 billion ($315.5 million), up 108% year-over-year, driven by February's $620 million Plarium acquisition. RAID: Shadow Legends generated SEK 1.4 billion alone following a Teenage Mutant Ninja Turtles crossover. Direct-to-consumer platforms reached a record 26% revenue share as regulatory changes enabled growth beyond traditional app stores, with mobile comprising 69% of total revenue.

Roblox Mandates Age Verification to Restrict Adult-Minor Communication

Roblox will require global age verification starting January 2026, using facial estimation technology through Persona to assign users into six age-based chat groups. The feature launches mandatory in Australia, New Zealand and Netherlands this December. Users must complete verification to access messaging features, with images deleted immediately after processing. The move follows November 2024 restrictions preventing under-13 users from accessing direct messaging.

⚔️Side Quest

🤣Laugh:

📺 Watch: Former Bethesda veteran Jeff Gardiner discusses his two-decade journey creating Fallout and Elder Scrolls titles before founding Something Wicked Games. Learn about his studio's debut RPG Wordsong, a "Medieval Matrix" set in mythological Portugal, plus candid insights on industry consolidation, studio layoffs, fostering remote team culture, and balancing radical creativity with smart iteration in modern game development.

🎮 Play: News Tower delivers an addictive 1920s newspaper management experience with surprising depth. Build your office, lead staff, assemble papers, and navigate city faction relationships in this beautifully atmospheric tycoon game. While article tagging systems and staff management can feel overwhelming, the weekly production cycle remains compellingly engaging. Perfect for management sim fans seeking period-authentic challenge wrapped in light-hearted presentation that respects both historical setting and strategic gameplay.

📚 Read: This deep-dive analysis uses machine learning to crack open gaming's most guarded secret: development budgets. Learn how Kei games cost a median $65,000 while AAA titles reach hundreds of millions, why publisher partnerships triple spending versus self-funding, and how multiplayer games dominate the $10 million-plus bracket. Essential reading for understanding the financial realities shaping modern game development across 100,000 Steam titles.

💡Did You Know

Since 2000, the graphics card industry has exploded into a massive global market, with over 2.3 billion units sold, generating approximately $482 billion in revenue.

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