India is ready to game!

Well, before I get started by listing down the growth possibilities of online gaming in the Indian climate, let me define online gaming for you. The concept of online gaming is different as compared to the static version of console or PC enabled gaming. It is quite obvious that the major demarcating factor between both the versions is that the web based games require the use of PC and internet connectivity. These games can be either played online or downloaded and played later. They can support single player games or multiple player games, as long as the gamers are located within India. (IAMAI report-2007)


But the question is: Why is India suddenly so excited about online gaming? Perhaps the main reason behind this new found interest is the heightened awareness level both at the market and at the individual front. Due to its instant availability and much- needed relief from boredom, web based gaming became a preferred choice for entertainment. To satiate this hunger for amusement, game providers are delivering free games by implementing a three stage revenue model. Major sources that are fueling the growth of the burgeoning industry are advertising, subscriptions and organized cyber cafes.

Advertising: This includes Advergames, In-Game placements & On-Site advertising. The contribution of advertising is estimated to be Rs. 2.24 Crore


Subscriptions: Amounting to Rs.6.6 Crore, it mainly encompasses monthly subscriptions paid for MMORPGs (Massively Multiplayer Online Role Playing Games) available through Indian publishers and subscription fee paid directly to the international players for MMORPGs such as World of Warcraft and for digital distribution of games through broadband service providers


Organised Cyber Café: These include revenue accruing to the dominant players like Reliance & Sify from the online gaming activities at the Cafés and Game Dromes. The contribution of this sector is estimated to be Rs 12.17 Crore

It is estimated that within a span of a few years the industry size will expand at an exponential pace. Online gamers are focusing on various strategies that can enable long term monetization. Right now, we have a free model that is banking upon the advertising revenue to sustain the initial growth but in future there are plans to introduce monthly subscriptions. However, the concept of in-game placements will act as a steroid by giving the online gaming industry the much needed initial boost. To sum it up, India can surely expect rapid growth in the web based gaming industry, provided we choose the perfect strategy. It would surely be the biggest determinant to the growth of industry revenues that can propel us as a leading market just like China & Korea.