Executive Summary
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Video Games have been a popular pastime across the world
since the 1970s. The popularity of video games has grown with the advancements
in digital technology, mobile communications and the Internet in the 1990s.
Gaming can be classified into PC gaming, Console gaming, Wireless gaming,
Multiplayer gaming and Massive Multiplayer Online Role playing Games (MMORPG).
In India, mobile gaming and console gaming are the most popular forms of games
followed by PC gaming and MMORPG. The Indian gaming market is very small when
compared to other developed countries such as the US. This is because the
awareness for gaming has been primarily limited to urban areas. |
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This also highlights the vast untapped potential
in India. With the increased penetration of mobile phones and
personal computers in small towns and cities, industry experts
estimate the gaming market to grow in the near future.
According to a report by In-Stat/MDR, a market research firm, the
market for mobile gaming in India was expected to be around US$26
million by end of 2004.The market was expected to reach US$336
million by 2009. The penetration of cell phones in India was higher
when compared to personal computers; hence more people were likely
to get their first gaming experience on a cell phone. Moreover, a
large proportion of youth were keen to try out new games. Cellular
service providers such as Hutch and Reliance had capitalized on the
popularity of mobile gaming in order to attract more subscribers by
offering games for download through their websites.
The online gaming sector in India is being driven by the increasing
number of Internet users, increase in disposable incomes, and
propensity to spend among the youth. The growth of Internet cafes
such as Sify i-way and Reliance WebWorld, who have installed online
games to attract more consumers, has also contributed to the rise in
online gaming in India.
The PC gaming segment in India mainly consists of youth and college
students. The growth in this market is being propelled by the growth
in the personal computer market. PC sales in India have increased on
account of the decrease in prices due to decrease in import duties
on hardware components and increased competition. Microsoft Game
Studios, the gaming division of Microsoft Corporation, had conducted
the “Halo” (in 2003) and “War of a Million’ (in 2005) PC gaming
championships in India. The positive response received by these
championships highlighted the growing popularity of PC gaming in
India. However, piracy and price competition among the distributors
were seen as the key challenges for this segment. Console gaming is
still at a nascent stage in India. Individual consumers, schools and
IT/ITES are the target market for console gaming.
India also has great potential to become an attractive destination
for outsourcing of gaming development activities. India can
capitalize on its strong reputation for outsourcing of IT/ITES
services in this regard. But in the outsourcing sector India will
have to compete with South Korea and Taiwan whose talent pool is
greater than that of India with regard to game development. India
needs to establish special training institutes to develop quality
professionals. In addition to outsourcing, Indian companies can team
up with their foreign counterparts to co-produce games.
In 2006, Indian gaming companies and Indian subsidiaries of foreign
gaming companies established the Indian Games Industry and Trade
Association (iGITA). iGITA would help Indian gaming companies to
secure a strong foothold in the global gaming development market.
Indian gaming companies are in the process of developing products
that are targeted at both domestic and international markets.
Despite the growth and opportunities for development, the Indian
gaming industry has to deal with challenges such as scarcity of
skilled professionals and high prevalence of piracy.
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