Gaming: India’s Emerging Entertainment Frontier

2018 proved to be a transformative year for the gaming industry in India. Smartphones had already been progressing toward the widespread adoption seen in Western regions, but the launch of PlayerUnknown’s Battlegrounds signified a major change for the market.

Real-money gaming titles have dominated the Indian gaming landscape for over a decade and continue to do so, yet Krafton’s multiplayer shooter revealed a desire for varied experiences that extended beyond the casual games that typically prevail on mobile.

“That game significantly altered perceptions and even the entire market because, prior to this, gaming was highly divisive,” explains independent consultant Sameer Desai, whose previous roles include editor of MCV India and country head for THQ Nordic. “For one reason, it was perceived as something exclusively for children, but on the other hand, it was also considered too violent for kids to engage with. There were games that were popular back then – Angry Birds, Temple Run, etc. – but PUBG came along and quickly skyrocketed in popularity on mobile.

“This coincided with the time when smartphones and data became more affordable, which certainly contributed. Everything came together to create the perfect storm. Influencers began playing PUBG and generating videos in Indian languages, which had not really occurred before. All these elements combined made PUBG a symbol of what gaming could become in India.”

Before 2018, gaming felt “like the Wild West” in India, Desai continues. PCs and consoles were available, but the cost of entry for consumers was steep, which led many to piracy (“You could easily browse PS2 games in stores like vinyl records,” he says). The launch of Steam made a small impact, but the market never expanded to the size found in other regions.

“It was also a phenomenon largely confined to urban areas because only those with disposable income could venture into gaming,” Desai adds. “It was a luxury; however, gaming is evolving into a hobby, and people are actively considering careers within it.”

Sharmilee Daru – founder of Four Wheel Power Gaming, a prominent PR agency in India – describes the nation as “a mobile-first market” yet one that is growing with a preference for Western-developed games.

“Many international titles also perform well here, but local developers are starting to create their own games, whether they’re AAA, casual, or various other categories,” she says.

“There is no doubt that the market here is expanding. The gaming industry, the esports sector – they are all flourishing. Gaming is India’s new frontier of entertainment. I believe revenues will continue to rise, the number of gamers will keep increasing, and we’ll witness more companies producing more games.”

Daru references two reports examining the potential growth of gaming in India. First, Niko Partners predicts the Indian gaming market will surpass the $1 billion revenue threshold next year. Secondly, a recent Lumiaki report anticipates that Indian gaming revenues will reach $9.2 billion by FY 2029, signaling rapid growth in expenditure.

“There is no doubt that the market here is expanding. The games sector, the esports arena – they are all thriving. Gaming is India’s new entertainment frontier.”

Sharmilee Daru, Four Wheel Power Gaming

This transformation has largely been facilitated by the launch of the Unified Payments Interface in 2016. This mobile payment system links directly to users’ bank accounts and can be integrated into all applications, including games.

“The willingness [to spend] was always present, but it was the payment methods that were lagging. Indians are generally hesitant about using credit or debit cards online,” Desai explains. “Once UPI was introduced, it simplified the process immensely. Even Western games like Valorant allow seamless in-game purchases using UPI – you hardly even leave the game, it’s incredibly smooth. Valorant is reportedly generating $2 million a month in India – which might not seem like a lot elsewhere, but here, that’s significant.

“It still remains a challenge on consoles, as you can typically only pay via card on those platforms, while Steam now incorporates UPI as well. [However] player counts were there even when the revenues weren’t. The moment that changes is when India will truly begin to elevate the industry.”

What do Indian gamers enjoy?

While player spending is expected to climb, a small portion of that revenue is anticipated to land directly with Indian gaming companies. The majority of popular games are from other countries – titles such as Valorant, Clash of Clans, Candy Crush Saga, and Free Fire from the Singaporean firm Garena.

However, the success of PUBG – or Battlegrounds Mobile India, the version specifically developed for this market – has inspired a wave of developers to create their own midcore shooters, such as the forthcoming FAU-G Domination – a deathmatch game set in India, developed by Mumbai studio Dot9 Games. Daru is confident that a domestic game will rise to the top of the charts soon.

“There are numerous gamers, but the real increase in revenue will occur when local games break through and users begin to spend on these titles,” she says.

“I hope we will soon see a successful local game. India is very close. You never know which game it might be, but once a standout title emerges, the entire ecosystem will thrive.”

Indian gamers’ preferences are diverse. Anime is incredibly popular throughout the nation, leading to hits like Genshin Impact and various titles from MiHoYo. However, Japanese RPGs are less favored, and flagship Final Fantasy only gained traction in India after transitioning to real-time combat. Cricket games are also immensely popular – even more so than in Australia, according to one panelist at India GDC 2024.

India’s console and PC players are significantly fewer than mobile users. Indie developer and analyst Rishi Alwani notes that the “numbers are not where they should be based on the population” and estimates that console and PC gamers make up only 10% of the Indian market. Nevertheless, this segment is increasingly aware of trends in other markets and actively seeks out those titles; for instance, Dark Fantasy: Wukong gained popularity among console and PC gamers in India.

“PUBG became this symbol for what gaming could be in India.”

Sameer Desai, consultant

Desai adds: “Any games that are not overly focused on narrative will perform well in India without needing localization. That’s why PUBG, Valorant, and Fortnite succeed. Even titles like God of War see YouTubers translating the story into Hindi for those who wish to play, indicating that some IPs still thrive even if they are story-driven games.”

Real-money gaming – similar…
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In the realm of online casino-style games where participants aim for cash rewards, clean currently leads the market. Once again, a distinct shift is occurring away from midcore and action titles like the previously mentioned shooters. Alwani highlights two factors contributing to the surge of midcore games.

“Firstly, data has become quite affordable,” he explains, pointing out how expensive it used to be to obtain high-quality games. “Nowadays, acquiring a 1GB file is fairly straightforward since data costs are significantly lower.”

“Secondly, smartphone prices have decreased, and even when you spend the same amount, you’re receiving greater value. We are witnessing numerous devices with ample storage. If you examine games such as BGMI or Free Fire, which require at least 1GB to download, this is no longer an issue.”

Despite the limited audience for console and PC gamers in India, many indie developers continue to pursue these platforms with aspirations of reaching a global audience. Chirag Chopra is the founder of Lucid Labs, a studio that previously focused on premium mobile games but is now transitioning to console, PC, and even virtual reality.

While it has become significantly easier to create games for these platforms today, he acknowledges that attracting attention to them is becoming increasingly difficult, particularly given the sparse traditional gaming media landscape in India.

“It’s all about sending cold emails to [international sites], reaching out to individuals like you and simply asking, ‘Hey, would you be interested in featuring us?'” he states.

This situation also amplifies the pressure on Indian indie developers to attend global events like GDC and Gamescom, though the costs associated with participation can be steep.

“As a bootstrapped indie studio with a strict focus on frugality, we don’t attend many events,” Chopra remarks. “We only go when we have a specific agenda, such as meetings with publishers or platform owners. If the sole purpose is to showcase [the game], then it doesn’t make sense for us, as we can’t afford to be at the event just for that reason.”