Report on Gaming Industry in India

            
 
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Report Details:

Price:

Report Code : BREP039 For delivery in electronic format: Rs. 1000;
For delivery through courier (within India): Rs. 1000 + Rs. 25 for Shipping & Handling Charges

Themes

Business Reports
Report Length : 24 Pages
Period : 2000 - 2006
Organization : -
Pub Date : 2007
Teaching Note : Not Available
Countries : India
Industry : Gaming

Executive Summary

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.

Keywords

Video Gaming, India, Industry Report, Personal Computer gaming, Console gaming, Massive Multiplayer Online Role playing Games (MMORPG), Halo, Wireless Mobile Gaming, Reliance WebWorld, NASSCOM, IT/ITES services, Talent Shortage, Animation, Outsourcing Game Development, Software Piracy, Indiagames, Dhruva Interactive, Mauj Telecom, Paradox

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