Indiagames Ltd: Mobile Games and Beyond
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Case Code: BSTR218 Case Length: 22 Pages Period: 1999-2006 Pub Date: 2006 Teaching Note: Not Available |
Price: Rs.400 Organization: Indiagames Ltd Industry: Media, Entertainment, and Gaming Countries: India Themes: Growth Strategy, Strategic Alliances |
Abstract Case Intro 1 Case Intro 2 Excerpts
"Opportunity lies in creating and exploring something new. People always try to copy business models. Why should we always look at outsourcing for revenues?"
- Vishal Gondal, CEO, Indiagames Ltd in September 2005.
"With half a dozen major developers, along with a variety of start-ups, we expect India's influence to grow in the evolving mobile gaming sector. It is a multi-million dollar market, both in terms of software development and end-user consumption."
- Clint Wheelock, Director of Wireless Research, In-Stat/MDR in January 2006.
Introduction
In September 2005, the largest mobile game development company in India and Asia Pacific, Indiagames Ltd (Indiagames) was featured in the Red Herring magazine's list of the top 100 Asian technology companies.
Indiagames started off in 1999 as an online games portal funded by venture capital investors, with a core team of five members headed by Vishal Gondal (Gondal). In the beginning, Indiagames developed India-centric online video games and was, in fact, the first company in India to indigenously develop a 3D game. Though it failed to find a substantial market for its games in India, it was quite successful in selling its products in the US market. In 2000, in spite of initial opposition from its investors, the company opted to enter the then nascent mobile games market and began R&D efforts in this direction. In 2001, with the dotcom crash, Indiagames witnessed a slide in its online games business.
With a major part of its revenues drying up, its investors suggested it become an outsourcing unit for foreign game development companies. However, the management of the company convinced the investors to allow the company to develop original game products for the mobile game market.
By 2002, Indiagames had developed several mobile games and had established a worldwide distribution network which included several important partnerships with mobile service providers, handset manufacturers, and technology providers.
In order to have greater visibility for its games in international markets, it decided to develop games around brands that enjoyed worldwide recognition. This strategy helped the company market its games successfully. In 2005, Indiagames was also able to attract strategic investment from Chinese and US investors which served to provide the company with capital, superior technology, and access to a wider market.
By 2006, Indiagames had become one of the top five mobile game companies in the world. The company was planning to enter the console game market in mid 2006. However, its future was increasingly dependent on its ability to deal with the scarcity of game developers, low device capabilities, growing competition, and high levels of piracy....
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