Gaming Industry - India

July 2009

Executive Summary
Indian gaming industry is valued at INR X bn in 2008 and is expected to reach INR Y bn by 2012 Outsourced services constitute x% of the market The market comprises of four segments - Mobile , Online , Console and PC Mobile gaming is the largest segment with x% share in 2008

Market

Drivers:

Drivers & Challenges

Increase in disposable income Favorable Demographics Cost competitiveness Increasing PC penetration Proliferation of Internet Increasing Mobile Penetration and growth in MVAS market

LE P M A S

Challenges:
Broadband Quality High Piracy Manpower Management High Duty rates in Consoles Handset compatibility Revenue sharing issues in mobile gaming

Trends

Creation of gaming zones/ Organized Cyber Caf chains Rise in Popularity of Massively Multiplayer Online Game (MMOGs) Localization of games/content New payment mechanisms Major clients for Indian gaming firms include game publishers, console makers , telecom operators and gaming portals Online segment includes online gaming portals, ABC is leading player in this segment Console segment comprises of gaming console makers like AA, BB and CC PC gaming segment comprises of game publishers like A, B and C
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Competition

Market Overview Drivers & Challenges Trends Competition PE Investments Key Developments

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India has emerged as an ideal destination for game development

Gaming Market Overview
Gaming Industry is at a nascent stage in India but has a great potential to grow India has emerged as a key destination for game development Increased penetration of mobile phones and personal computers has helped in rapid growth of Indian gaming industry

Market Size and Growth

INR bn
15 10 5 0

Revenues split
Original Content Development y%

LE P M A S
z% y%

x%

2008

2012

Segments and Share

2008
w% y% x%
Mobile Gaming Console Gaming Online Gaming PC gaming

2012
w% z%

x%

x% Outsourced Services

Source: Outsource2India India: Destination Next for the International Gaming Industry ; Indiantelevision.com BW Marketing White book 2009-10 ; Indian gaming industry to hit $ 300 million by 2009 May 2007; GAMING INDUSTRY INDIA.PPT

Free game downloads dominates mobile gaming

Overview
India constitutes only x % of the global mobile gaming industry Mobile gaming market expanded with the penetration of GPRS enabled mobile phones and reduction in GPRS access charge Leading game developers in mobile gaming segment include Paradox Studios, Indiagames Ltd. and Mobile2Win

Mobile Gaming

Market Size and Growth

INR bn
10 8 6 4 2 0

B x%

Frequency of playing games (urban users)

Almost daily z%

LE P M A S

2008

2012

Break-up of free vs paid downloads

Paid downloads x% 1 to 3 times in a month

y%

x% y% At least once a week

Free downloads

Source :Telegraph Mobile operators game for new money-spinner" February 2005; Telecom India daily Insights on Mobile Gaming in Urban India 2009; Outsource2India India: Destination Next for the International Gaming Industry ; India Games.comDynamics of Indian Mobile Industry; ciol.com India, seriously playing games! June 2005; BW Marketing White book 2009-10 GAMING INDUSTRY INDIA.PPT

Challenges Drivers
Increase in Disposable Income Favorable Demographics Cost Competitiveness Increasing PC Penetration Proliferation of Internet Increasing Mobile Penetration and Growth in MVAS Market Broadband Quality High Piracy Manpower Management High Duty Rates in Consoles Gaming Devices and Titles Handset Compatibility and Revenue Sharing issues in Mobile Gaming

GAMING INDUSTRY INDIA.PPT

New Payment Mechanism

Creation of Gaming Zones/ Organized Cyber Cafe chains

Trends

Localization of Content

Rise in Popularity of Massively Multiplayer Online Game (MMOGs)

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Large number of gaming software developers have emerged in India

Competition Overview
ABC is estimated to have x % share in the Indian online gaming market In the mobile gaming space
Amongst service providers A leads with x% share in downloads Amongst Portals B lead with y% share

AA leads with x% share amongst all console hardware Global gaming companies like A and B have set up offshore centers in India for game development, while AA is scouting around for a JV Profit Margins in gaming industry
Online games: x% Gaming Software Titles (PC and Console): y% Console Hardware: z% Mobile Games: v%

LE P M A S
Major Players
- - --

Mobile Gaming
- - - - - --

Online Gaming

Console Gaming
- - --

PC Gaming

Source: Channelworld.inEA to Capture the Indian Gaming Market September 2008 ; Contentsutra Zapak Claims 70-75 Percent Marketshare April 2008 ; India games.com Dynamics of Indian Mobile Gaming Industry 2007; Telecom India daily Insights on Mobile Gaming in Urban India 2009 ; Sony to Offer new PlayStation 3 to Indian Gamers November 2007 ; Financial Express Web cafes to drive gaming growth March 2007; Gaming Comes To The Fore April 2008 GAMING INDUSTRY INDIA.PPT

Thank you for the attention

The Gaming Industry report is a part of Research on Indias Media and Entertainment Industry Series. For more detailed information or customized research requirements please contact: Natasha Mehta, CFA Gagan Uppal
Phone: E-Mail: +65 8448 0449 natasha.mehta@netscribes.com Phone: E-Mail: +91 98364 71499 gagan.uppal@netscribes.com

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