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Gaming in India set to grow 72% by 2010-11

Priyanka Joshi / New Delhi November 28, 2007

gaming summit is being organised by IAMAI in Mumbai today.

The Indian gaming market is growing at a dizzying pace. The figures tell the story. The Indian gaming segment — comprising mobile, computer and console games and development — touched Rs 192 crore in 2006, and is likely to cross Rs 1,700 crore by 2010, states Nasscom.

The compound annual growth rate is 72 per cent over 2006-2010. Industry players are more bullish. They peg the figure for 2010 at almost Rs 2,500 crore.

“Interactive online entertainment is changing the way an entire generation consumes gaming... it is expanding beyond passive consumption to include story-telling and that is where we get our casual, first-time gamers,” said Rohit Sharma, COO, Zapak, which is collaborating with Intel and the Internet and Mobile Association of India (IAMAI), to organise a gaming summit on November 28, in Mumbai.

The summit, insists Sharma, will bring to the fore issues like retailing games — both mobile and online — that players haven’t been able to master.

“Zapak, which already has 10 gameplexes (dedicated cyber cafes that promote online gaming), will more than double the number in 2008. Besides, pre-paid game cards should see us reaching to the next million consumers,” he said.

Subho Ray, president, IAMAI, agrees with Zapak’s efforts to make cybercafes the ‘Mecca’ for gaming. Most of the revenues for online games come from organised cybercafés (Rs 12.17 crore), followed by subscription-based revenues (Rs 6.6 crore), and advertising (Rs 2.24 crore).

Already retailing at 1,300-odd retail shops, Zapak has been able to attract the younger crowd with a range of “easy-priced game cards”. Zapak is also committed to invest $30 million (around Rs 120 crore) over the next two years, developing its content and delivery model in India.

Meanwhile, Vishal Gondal, CEO of Indiagames, is busy with his own retail strategy for mobile games. “Video clips, games and advertising have been available in limited capacities on mobile phones, accessing the content has typically been cumbersome, due to slow response times, high costs, and the need for excessive clicking on the part of the consumer,” he points.

Indiagames is ready to launch pre-programmed scratch cards and CDs in retail stores by January 2008, which will enable users to load their mobile phones with games of choice.

“These retail packs will be priced at as low as Rs 50 and will allow users to buy particular game subscription for a fixed number of hours,” said Gondal.

Investing largely in developing a business model for the online gaming platform, Zapak believes that advertising-based revenue models are not going to be on its priority lists.

“Since the gamer base is limited today, there are not many advertisers who would bet their money on in-game advertising,” Sharma reasons.

“The main driver for sustained growth in the online games market will be the continued uptake of broadband services,” according to Strategy Analytics, an international research firm.

Ray feels online gaming will accelerate in 2008 “if it were to be declared as e-Sports and all the advantages that accrue to sports are extended to online gaming as well”.