Pixel P&L: Rooter’s Record Month

Good morning. It’s Tuesday, December 3. Rooter has recorded a record amount of growth in November 2024. In today’s Pixel P&L, we delve into their growth in recent months. We’re also looking at how the video games industry is unlocking a new revenue stream through product placement.

We also report on Nazara CEO Nitish Mittersain’s vision for AI in game development, JetSynthesys’ appointment of a new gaming CEO, and insights from Indian gaming experts on the medium’s transformative potential for brands.

Indian gaming and streaming platform Rooter has reported a sharp rise in its commerce vertical, Rooter Shop, as per claims by founder and CEO Piyush Kumar. In a series of posts on X, Kumar stated that Rooter Shop achieved a gross merchandise value (GMV) of $685,000 (INR 5.5 crore) in November 2024, marking a sixfold increase from October and a 153% compound monthly growth rate (CMGR) over the past four months.

Launched four months ago, Rooter Shop has positioned itself as a marketplace for gaming currencies. Kumar also alleged a 21% month-on-month growth in average order value (AOV), reaching $9.6 in November. He credited the platform’s shift from a live-streaming service to a content-to-commerce ecosystem for the growth. He also stated that Rooter reduced EBITDA losses by 52% as part of its push toward profitability.

The most popular items on the marketplace include in-game currencies such as BGMI UC, Free Fire Diamonds, EAFC Mobile FC Points, Clash Royale Gems, and Google Pay Recharge Codes. The reported metrics and achievements remain company-provided data, with no independent verification of the claims at this time. 

With global gaming revenues set to reach $187.7 billion in 2024, the industry has outpaced movies, music, and sports as a dominant force. Yet, as traditional revenue streams—like in-app purchases and subscriptions—hit their limits, game developers are exploring a new frontier for monetization: product placement.

Borrowing from Hollywood's long-standing playbook, the gaming industry is experimenting with ways to weave brands into gameplay. But this isn’t just about logos and billboards—it’s about making brands a part of the player experience in ways that feel seamless and engaging.

How is the gaming industry adapting product placement to its uniquely interactive medium? And how are players, often skeptical of monetization strategies, reacting to these shifts? Our feature story delves into gaming’s evolving relationship with brands and the delicate balance developers must strike to avoid alienating their audience. 

Nazara Technologies Embraces AI to Reinvent Game Development

In an interview with the Economic Times, CEO Nitish Mittersain revealed that the company has formed an AI task force to "reinvent all aspects of gaming with an AI-first approach." Mittersain explained that Nazara is testing AI-driven innovations in smaller studios before scaling them to larger operations, aiming to deliver content faster and more cost-effectively. He highlighted AI’s potential to enhance "player engagement, monetization, and data analytics," adding that any gaming company not adopting AI risks being disrupted. “We are very much on it,” Mittersain affirmed.

Gaming’s Interactive Potential a Game-Changer for Brands, Say Experts

At the e4m Screenage Conference 2024, panelists highlighted gaming as a dynamic, audience-engaging medium. Girish Menon of JetSynthesys described it as a "lean-in" experience compared to passive TV, while Ravi Kiran of GoLive Games shared how their cricket game connects players with smartwatch sponsors. Ninad Chhaya of Reliance Games advocated measuring success via Return on Engagement (ROE), citing a campaign featuring Hershey’s branding in gameplay. Experts urged brands to embrace gaming holistically—through tournaments, creators, and events—for deeper audience connections.

JetSynthesys Appoints Ryo Shima as CEO of Gaming Division

Shima succeeds Anuj Tandon, who is leaving after a two-year tenure. Shima, who previously led JetSynthesys' Japan operations, brings experience from his time at Japanese internet giant GREE, where he oversaw international expansion and mobile gaming innovation. In his new role, Shima will focus on expanding the company’s gaming portfolio, improving player experiences, and leveraging advanced technology to bolster its global presence.

Only four games have achieved the extraordinary feat of earning perfect 10/10 scores from the industry's most respected outlets: IGN, GameSpot, Edge, and Electronic Gaming Monthly (EGM). These titles are universally celebrated for their groundbreaking innovation and near-flawless execution.

The four games are:

• The Legend of Zelda: Ocarina of Time (1998)

• Grand Theft Auto IV (2008)

• Super Mario Odyssey (2017)

• Elden Ring (2022)