Indian Gaming Industry roundup: Key statistics and Business model in online gaming
Indian gaming industry though still in a nascent phase, is evolving at a fast pace (@ 94% CAGR). Here is the complete coverage of events that are shaping up India’s Gaming Industry.
Indian Gaming Industry: Key statistics
- Indian gaming industry size is estimated at $100 million in 2006-07.
- Industry expected to reach $300 million by 2009, a growth of 78% year-on-year.
- Mobile gaming contributes 58% of the total revenue.
Online games and the Indian piracy
In India, PC games are not profitable because of the P-word (i.e. piracy). The only way one can beat this is either by giving away the games for free (and think of other ways to make money, which is not very sustainable) or else go the online route.
“The problem in India is not that people don’t game. The problem is that people buy pirated games. If we are able to convert the pirate users into paying consumers, that alone will make the gaming industry worth Rs 3 billion.” (Vishal Gondal, Founder of IndiaGames) source
And the biggest challenge in online games adoption is the lower penetration of broadband and of course, prevalence of anti-gaming culture in India (see our earlier coverage of Indian gaming industry)
Business models in Online Gaming
Like the online gaming industry, the business model too is evolving. Prime business models adopted by gaming players are:
- On-Demand, Subscription model – Players like Zapak/IndiaGames are coming up with subscription model for casual gamers. Most importantly, keep the prices so low that consumers don’t want to take the pains to pirate the game.
- Apparels/Merchandise: This is an unexplored segment and companies like DanceMela are giving away the game for free and then they sell merchandise thru’ their games. This model also entails partnerships with entertainment sector (Bollywood) and creating specific games based on bollywood/cricket etc.
Console gaming in India: Xbox and PlayStation
Console game market is currently pegged around Rs 60 crore, and is expected to touch Rs 550 crore by 2010, says PwC (source). This will amount to an estimated 30 per cent share of the total gaming market by 2010.
Sony and Microsoft are gearing up for the battle by lowering the consol price
- Sony out to entice Indian gamers
Sony has reduced the PlayStation3 price from Rs 34,990 to Rs 29,990 and gaming titles from Rs 999 to Rs 499. It is also working with Derek O’ Brian to launch its quiz-based game called Buzz in India. This will be launched before Christmas this year.
- Microsoft India to launch Xbox live on Nov 5
Users will be able to play casual, fast-paced arcade action, new game content or multiplayer frag-fests and also see trailers of Bollywood films starting with Hanuman Returns.
The company has also installed over 1,200 display points across the country in all major retail stores, where customer can get first hand experience about the product.
Microsoft has also tied-up with UTV, which ensures that users will have access to other already released but popular Bollywood content of UTV Films. (ET)
- Even though prices for mobile games are often higher than other forms of mobile entertainment, such as music, ringtones and some adult content, mobile gaming will often be the only choice in many emerging markets because less money is needed to start mobile gaming than to buy a PC or games console. (source)
- One of the factors driving mobile gaming in developed markets is availability of faster processors in mobile devices, which enable faster response times, 3-D graphics and advanced sound capabilities