Gaming

Everyone’s a
Gamer!
The gaming industry in India is growing at a CAGR of over 70
per cent and is expected to touch the half-a-billion-dollar mark
in just two years, says Dipta Joshi.

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G
aming is serious business as gaming platforms. Aware of India’s gaming to touch $42 billion by 2010. “India is fast
young urban Indians spend potential, the world’s largest producer of emerging as a key one-stop destination
hours battling ‘Agni’, ‘Crysis’, games, Electronic Arts (EA), has set up a for game development for international
‘Counterstrike’ and ‘Turbo centre in Hyderabad. companies, which outsource game art
Spirit’ and even the world’s best crick- Microsoft’s India Development Centre, works or develop characters for games
eting teams on Xboxes, PCs, mobiles also at Hyderabad, plays a crucial role in in India,” says L. Maruti Sanker, managing
and the Internet. Around 500-plus online developing game titles and providing director, 7Seas Technologies.
casual gaming titles and close to 50 infrastructure support to all Microsoft Almost 90 per cent of gamers in India
mobile-based games are launched in India platforms. In 2006, India’s animation and are casual players, according to an Indian
every year. gaming industry was estimated at almost Market Research Bureau International
As gaming fever catches on, there $50 million, while globally the market (IMRB International) survey. Gaming
has been a sudden spurt in the number stood at $21 billion. The National Associa- companies believe these players will soon
of companies catering to every aspect of tion of Software and Services Companies get hooked on to the digital entertain-
gaming. Players like Zapak Digital Enter- (NASSCOM), the leading industry body ment segment. “India has been following
tainment, Games2win, Indiagames and for the software and services industry, China’s footsteps regarding mobile and
7Seas Technologies have their own gaming expects India’s gaming segment to touch internet penetration,” notes Rohit Sharma,
portals in addition to being involved in the $425 million-mark by 2010. chief operating officer, Zapak Digital
developing games. Companies such as This would represent a 72 per cent Entertainment, part of the Anil Dhirubhai
Kreeda Games India, Indiagames, 7Seas compound annual growth (CAGR) over Ambani group (ADAG). “We expect it to
Technologies, Games2win, Dhruva Inter- 2006-2010, much faster than the expected do so in the gaming sphere too.” Gaming
active and Nazara Technologies are also global CAGR of 18 per cent in the same has four categories or verticals: games
Corbis

developing games in-house for various period. Globally, the industry is expected played on one’s personal computer (PC

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gaming

here we come: With the proliferation of easily available multi-player and massive multi-player online games, PC-based games are becoming popular

based), console-based games (played Console-based games that require expen-

via the Xbox or Play Stations), wireless sive hi-tech hardware and software have a
or mobile games, and online games that As the penetration limited market in India at present.
need broadband connectivity. There are
various genres of games (puzzles, sports,
of mobile phones, In contrast, the mobile and online
gaming segments are expected to witness
adventure etc) for each of these platforms.
In India, the maximum share of the gaming
PCs and broadband good growth, as India has a strong mobile
phone and Internet base. “As the penetra-
pie is taken up by mobile gaming at 49 per connections rise, tion of mobile phones, PCs and broadband
cent of the market today. Console games connections is rising, it is obvious compa-
– which includes Sony’s PlayStation 2 and those developing nies developing mobile and online games
3, Microsoft’s Xbox 360 and Nintendo’s will witness higher revenue generation
Wii – come next at 27 per cent. Online mobile and online with more users,” reasons Sanker. Thus,
gaming and PC-based games account for despite being involved in the develop-
about 12 per cent each. Worldwide gaming
games will witness ment of all four verticals of gaming, 7Seas
is turning more social, having gone from
being just a single-player experience to
higher revenues. Technologies is focusing on mobile gaming.
The company recently spent around $1
a multi-player one. With a proliferation of million to develop seven 3D games for
easily available multi-player and massive the mobile gaming market. According to a
multi-player online games (MMOGs), research report by Indiagames, ‘Dynamics
PC-based games are becoming popular. of the Indian Mobile Gaming Business,’

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 GAming

Fair game
For the 20-odd Indian companies involved in the gaming
industry today, creating mobile and online games seems to
be the most popular segment of the four gaming verticals. The
current rush in the mobile gaming segment can be explained
by the low costs and low gestation period the project takes to
be completed. While a full-fledged PC or console game can
take about a year or more to be completed, mobile games can
be finished within a couple of months. This advantage allows
gaming companies to create games around the most popular
concepts like festivals and major public holidays thus cashing
in on the current flavour of the season.
For instance, Nazara Technologies created a Dhoni Zone
within days of his appointment as captain of the Indian cricket
team. Here’s a comparative look at the production budgets to
create games for each of the four gaming segments.
Mobile Games:
Multi-player 2D mobile game format can be the created at
less than $50,000; a 3D mobile game would cost anywhere
between $120,000 and $240,000.
Online games: Require higher investments since the
number of games a portal requires is more. If the developer
goes in for a single-player format, it would cost less than
$25,000 per game. A multi-player option requires investments PC games: A good PC game costs around $2-3 million.
of around $60,000 to $120,000. The most expensive format in CONSOLE-BASED GAMES: Played on Microsoft Xbox,
this segment is the Massively Multiplaying Online Game (the PlayStation 2 or 3 and Nintendo Wii - need investments of about
MMOG format) that needs more than $2 million. $5-10 million.

released at the Mobile World Congress gaming market, cannot compete with
held in Barcelona earlier this year, about online gaming in terms of artwork and
100,000 games are downloaded every game play.”
day across all networks in India. Vishal Zapak’s confidence in the success of
Gondal, founder and ceo, Indiagames Ltd, this vertical has seen it willing to invest
says “Globally a high-end user could spend $100 million in gaming portals, gaming
$20 a month on games – almost two-and- cafes and content creation, thus creating
a-half times the average revenue per user a complete value chain for online gaming
in India.” He expects the market to grow in India. Its brick-n-mortar extensions
aggressively over the coming years and called Zapak Gameplex are large format,
estimates the mobile gaming business in high speed broadband enabled, organised
2010 will be around $250 million. gaming cafés. Currently, there are 21
The global mobile gaming market such cafes in 13 cities within the country.
is forecast to exceed $2.2 billion in Zapak is working towards 500 cafes in
about two years. This will mean a 40 cities. The company has also worked
huge opportunity for Indian mobile out a novel way to ease issues regarding
game developers too since games with payment mechanism, a key component
Indianised concepts in English find a large of the gaming value chain. Since access
worldwide audience. to credit cards and debit cards is not easy
With 2.8 million online gamers in for young adults, who form a major part
India today (2007 research conducted by of the customer base, the company has
Internet-In-India), the sector is showing come up with ‘Zapak Game Cards’ of
promise. According to Rohit Sharma, pre-determined value that allow a player
“Online gaming is the biggest community to purchase games online. “We are the
application, whose experience cannot be only company to have introduced such
replicated by any other gaming category. a payment option,” says Sharma. Online
rohit sharma: Online gaming is unique Mobile gaming, despite being a huge gaming companies depend largely on

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gaming

game station: The growing number of youngsters attracted by gaming cafés that are sprouting all across India

online advertising, in-game advertising from the overseas market, companies

(where ads are included as part of the have realised the need to localise games.
Their focus is game) and advergaming (a game is built Their focus is on customising content for
around a brand) for their revenues. Mobile the Indian market using local themes,
on customising games on the other hand are priced on the icons and games.
pay-per-play model or a one-time download Companies are also attracting women
content for the on most networks. gamers by introducing women-centric
Indian market These prices are decided by network
providers based on the type of content;
games like ‘Fashion Makeover’ and ‘Indian
Recipe.’ If gaming can be an interactive
using local branded/premium games cost more on social experience, it is bound to appeal to
an average. PC and console-based games more than just the male dominated 17 to
themes, icons and follow the traditional mode of sale and 25 year age group it caters to currently. The
purchase. Obviously, the only way to effort would also include spicing-up avail-
games. attract more young eyeballs is to have able foreign content and idea to appeal to
interesting games. a larger Indian audience.
Making best use of new technology By widening the base of gaming
like touch screen sensors and camera is possibilities, players in the sector are
resulting in more creativity. For instance, indirectly tapping across 90 per cent of
3D mobile games allow more control casual gamers in the country. It is a matter
to players. Though a good number of of time before the gamer in the average
popular games (in all the verticals) come consumer games on.

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