Increased share for Indian players : Indian players currently command only ~1% of the outsourcing market. As the skill-sets of the Indian players improve, this share is expected to go up. Increased Outsourcing : Gaming players overseas are increasingly focusing on cost reduction leading to greater outsourcing. There are some more important growth drivers for the Indian gaming industry and they are as follows – Rise in disposable income Favorable demographics Cost competitiveness Proliferation of Internet Key Challenges for Indian Gaming Industry - Expensive hardware and software Console hardware prices are in the range of Rs. 5,000 to Rs. 20,000 in the Indian market. Comparatively, the grey market, offers the same at a substantial discount. Going by the current prices, these gaming consoles are just a cherished dream for most teenagers in the country. To add to it, the software games for these consoles are in the range of Rs. 500 to Rs. 2,500 making it expensive for the general masses. What makes things more difficult is that the games are launched in the Indian market much later compared to the world release. Hence, grey market still presents a better route for users to lay their hands on the latest games.
SUMMER INTERNSHIP REPORT|IBS HYDERABAD - Broadband Quality Average broadband speed per use in India is around 256-512kbps, while that required for a MMORG is over 512kbps. Better service quality and higher speed at relatively cheaper prices would help the online gaming industry grow at a faster pace - Piracy Piracy is the single most negative factor for the gaming industry. Most of the games which are legitimately available for Rs. 500 to Rs. 1,500 are available in pirated market at 10% of the original price. Most new games reach the pirated market within a week of their release. Due to the existing price difference, users either prefer to buy the game from the grey market or download the same from the internet . Remaining factors which pose a great challenge towards Indian Gaming Industry are as follows- - Manpower Management - High duty rates in consoles - Handset compatibility - Revenue sharing issues in Mobile gaming are there - Fragmented Distribution network GAMING VALUE CHAIN Table 1: Gaming Value Chain (*Source: NASSCOM Industry Report, 2009)
SUMMER INTERNSHIP REPORT|IBS HYDERABAD CONSOLE GAMING Indian console gaming market is estimated at USD 97 million (2009) and expected to grow at 50% p.a. to reach USD 489 million by 2013. A significant percentage of the console gaming consumer revenues is shared with the console hardware manufacturers / software publishers: International Players viz. Sony, Microsoft, Nintendo, Ubisoft, Electronic Arts etc. Moreover, the margins involved in this di stribution business are very low. Hence, it is the ‗Consumer Gaming Services‘ market which has been analyzed from the growth perspective Figure 10: Indian Console Gaming Market GROWTH INDICATORS Currently, the revenues from console game development services are only USD 7 million. These revenues are completely derived from providing services to international companies. It is the
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