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Foreword
India, with 1.3 billion people and two-thirds below the age of 35, the worlds largest youth
population, is poised to become one of the worlds leading markets. Historically, games did
not gain a foothold in India due to the lack of access to gaming consoles and PCs, and the low
social acceptance of this entertainment medium. This is all changing now as the Indian
games industry is at the cusp of a major transformation. Economic growth has resulted in a
society that is embracing digital content and entertainment like never before, enabled by the
explosive growth of smartphones and affordable wireless internet.
These rapidly evolving changes will create tremendous opportunities for game developers,
publishers and enabling technology players, in what is destined to be one of the top gaming
markets in the world. This study, undertaken by NASSCOM Gaming Forum, offers a
comprehensive assessment of the Indian games industry. It provides an overview of the
Indian media and entertainment industry and digital landscape, a roadmap to the history and
evolution of the Indian games industry, an assessment of the Indian games market from the
consumer spending standpoint, and demographic insights into the Indian gamer. To put this
together, we conducted an extensive survey of the Indian developer and service provider
ecosystem, and interviewed key players to gather data and trends. We placed great
emphasis on data validation, as obtaining accurate data in a nebulous, and rapidly growing
and evolving market like India can be challenging.
The picture that emerges states that the building blocks for the creation of a massive market
are now falling in place. India is the worlds fastest growing smartphone market. By 2016, it
will top the US as the worlds second largest smartphone population with more than 200
million users. Thanks to this, consumers are experiencing games at a mass-market level like
never before. Huge momentum in eCommerce is building online purchasing habits, and
several initiatives, both by the government and private entities, are at play to crack
payments. With a growing consumer base and payment solutions in place, the Indian game
developer ecosystem will have ample opportunity to innovate and provide compelling
content with social and cultural context, which is key in engaging the Indian consumer.
As it discovers and capitalizes on market opportunities both in India and abroad, it is truly
exciting times for the Indian games industry. We hope that you nd this report informative
and useful, and we welcome your feedback and comments at ngf@nasscom.in.
R Chandrashekhar
President, NASSCOM
Rajesh Rao
Chairman, Gaming Forum
Acknowledgements
This report is a culmination of a four-month concerted effort by NASSCOM Gaming
Forum to provide a comprehensive overview of the Indian Games Industry.
We would like to thank various people for their valuable contributions, without which
this report would not have been possible. First, we would like to thank member
companies of NASSCOM Gaming Forum, who went out of their way to provide detailed
inputs, insights and perspectives on the industry, their companies and clients through a
comprehensive survey. More than 50 companies participated in this survey.
We would also like to acknowledge inputs from third-party sources cited in the report:
FICCI, KPMG, IAMAI, TRAI, IDC, Cisco's Visual Networking Index, IMRB, ASSOCHAM,
Deloitte, Opera Mediaworks, eMarketer and We Are Social.
Finally, we wish to convey special gratitude for the efforts and contributions from the
NASSCOM research and the Google team, without which successful completion of this
report would not have been possible.
Table of Contents
Chapter 1: The Digital Enablers
05
04
Internet
07
08
Digital Media
09
Mobile Advertising
10
11
12
Industry Overview
13
The Developers
14
15
17
18
20
21
Quick Facts
22
Talent Overview
23
Survey Background
24
CHAPTER
1
The Digital Enablers
13.9%
2X global M&E industry growth
2014
Total M&E
2015P
2016P
2017P
2018P
2019P
CAGR
(2014-2019)
1,026
11.7%
1,159
1,330
1,532
1,740
1,964
13.9%
TV
474.9
13.8%
543.2
634.2
739.6
854.6
975.5
15.5%
263.4
8.3%
284.5
307.1
331.9
358.0
386.8
8.0%
Film
126.4
0.9%
136.3
155.6
170.7
186.3
204.0
10.0%
Radio
17.2
17.6%
19.6
22.3
27.0
32.7
39.5
18.1%
World leader in lms produced yearly, but industry lags in terms of infrastructure
Slow growth (0.9%) in 2014, due to poor box ofce returns and lack of quality content
Future growth: Increasing number of multiplex screens in Tier II and Tier III cities
Internet
The Worlds Second Largest Internet Population
Potent Growth Ahead
354 million internet users by Q2 2015 (>75 million users added since Dec 2014)
In 2015, India is all set to surpass the US as the second largest internet population
in the world, after China
Internet penetration remains low in India (19%), leaving much room for growth;
future growth will come from increasing smartphone penetration in rural areas
503M
354
278
190
2014
2015e
2016e
2017e
Source: IAMAI-KPMG July 2015 - India on the Go: Mobile Internet Vision 2017
2013
314M
236
159
2015e
2016e
2017e
Source: IAMAI-KPMG July 2015 - India on the Go: Mobile Internet Vision 2017
Broadband Highways
Public Internet Access
eGovernance
E-Kranti
IT for Jobs
95%
of Indian mobile subscriptions
are on prepaid plans
Digital Media
Smartphones As Media & Entertainment Screens
Mobile Devices Have Multiple Uses
Mobile devices in India have gone beyond simple voice and SIM;
mobile video, social networking and instant messaging are
proliferating in the Indian consumer market
social network
9%
8%
8%
Skype
7%
Google+
6%
messaging/chat app
5%
5%
4%
4%
Viber
125
million
Mobile Advertising
India Is the Driver of Asia Pacics Mobile Ad Market
India is the 2nd largest mobile ad market in the world
Mobile advertising volume in India grew 260% between July 2013 and July 2014,
compared to 70% growth for Asia Pacic
India is the worlds second biggest market in terms of mobile ad volume, behind
the US (Opera Mediaworks)
Indias ad spike is mainly due to the rapid shift from feature to smart devices
Similar to the global trend, social sites/apps in India account for half of mobile ad
trafc and almost half of mobile ad revenues
However, India shows a signicantly higher use of mobile app store sites, gaming
and education sites than globally.
Ads for games and mobile devices represent nearly half of all ad impressions
(25.5% and 22.7%), followed by classied ads (20%) (Opera Mediaworks)
Remaining 3.2% of impressions are rich-media creative generating more than one
quarter of revenues1
79
2013
2014
173
2015
2016
2017
2018
$1billion
by 2018
*Illustrative
CHAPTER
2
The Indian Games Industry
EARLY INNOVATORS
Outsourcing for consoles
Online portals
Early PC game titles
# of companies: 5
EMERGING INDIES
Mobile game analytics
Focused/experimental game design
Social/PC games
Mobile games
Kickstarter projects
Angel investors for early stage funding
# of companies: >200
Industry Overview
A Young Industry With a Fresh Perspective
2014 Revenues ($USD)
Indian Game Developers & Service Providers
27%
< 160,000
160,000-800,000
$1.6 million
in 2014
> 1,600,000
Company Size
Location Split
57%
17%
13%
Delhi-NCR
17%
11%
24%
Others*
6%
2%
<10
11 to 50
51 to 200
201 to 500
>500
20%
Kolkata
18%
7%
Mumbai
Pune
Hyderabad
22%
Year of Incorporation
Indian Game Developers & Service Providers
Bangalore
*Others include
emerging cities
like Vadodara,
Jaipur, Indore,
Vizag, etc.
48%
15%
< 2005
19%
11%
9%
2015
The Developers
Majority Focusing on Global Market & Mobile
2014 Revenues ($USD)
Indian Game Developers
Of Indian developers,
75%
< 160,000
160,000-800,000
> 1,600,000
Business Model
96%
61%
35%
22%
Mobile
Games
Social
Webgames
18%
Casual PC
Games
8%
6%
MMO Games
Console
Games
29%
14%
Other
Free-To-Play
Freemium
Premium
Game Genres
Indian Game Developers
Arcade style games are the most popular
genre followed by puzzle and racing genre
39%
31%
31%
22%
20%
14%
Arcade
Brain
training,
puzzle, quiz
Race
Sports
Simulation
Action or
adventure
12%
Shooter
8%
Casino (exl.
Poker)
< 160,000
160,000-800,000
> 1,600,000
50%
30%
Mobile Games
Casual PC
Games
30%
20%
Other
Co Development
80%
55%
Revenue Share
Other
Development Game Art
Services
Animation
CHAPTER
3
India Games Market Trends
Approx gamers
50 mn
$150 mn
Mobile gaming revenues
Market size - Estimated 3000 cyber cafes in India with games, of which 1500 have 5
machines or more dedicated to games
In addition, there are few exclusive gaming cafes with console games as well
Popular games
Counterstrike
DOTA
League of Legends
World of Tanks
CONSOLE
Market size - Estimated around 3 to 4 mn console gamers
3 to 3.5 mn is the lifetime sales of all consoles (including PSP handheld), this includes grey
market imports
Around 500k units combined for both PS3 / Xbox360 (PS3 is around 350k units)
Less than 100k units for PS4 / XBox1 with PS4 around 65k
Number of active consoles are much less than installed base, as many consoles are defunct, with dust
and weather resulting in high failure rate.
Attach rates or the number of games purchased by a console owning consumer in India is much
lower than international average. Many console gamers share game titles among each other.
Future outlook - As in the case of PC gaming, most industry watchers expect console gaming to gain
from the rapidly growing gamer base due to smartphones
PC / Web gaming
2011
~17 mn
PCs sold in India
every year
2013
Between
and
, rapid growth in
Facebook user base coupled with widely
popular casual games like Farmville spurred a
mini-revolution of sorts, with many consumers
especially women gaining access to casual /
web games
*Disclaimer: We initially wanted to do a full market sizing for this report, but after discussions with a variety
of players in the ecosystem - developers, publishers, distributors, platform owners, hardware
manufacturers and journalists - we realised that it was very difcult to arrive at reliable estimates. India is a
nebulous, rapidly growing market, and reliable numbers are hard to come by. Existing market reports and
revenue estimates turned out to be in wide variance with our own research, which threw up far more
conservative numbers. We hence decided to put forth market indicators, data that we are condent as
reliable based on our own industrywide research and validation. We dont have revenue estimates for all but
the mobile segment, and we hope that in future as the market matures and we have better data, we can
publish numbers that are reliable for all segments of the games industry
Virtual Reality & Localization: 24% of developers see localization and virtual
reality as emerging trends
Free to Play Reins: Gamers in India have a relatively high tolerance for in-game
advertisements and prefer free games
Low ARPU: The ARPU of Indian gamers is far lower than the global average. 45%
of developers state that ARPU is low for those gamers who actually spend money
In July 2015, Apple announced new pricing tiers for App Store customers in India,
allowing developers to price their iOS app as low as Rs. 10 (approximately $0.16)
International games dominate mobile charts: with most local developers focusing
on global markets, only 15% of the revenues from the top 100 iOS games in India
in June went to Indian publishers, or publishers with ofces in India
Opportunities
India will continue to be one of the fastest growing game markets in the world,
delivering more and more opportunities for new and existing developers
With the new app minimum, mobile developers can target a wider audience and
acquire new paying users and this will drive overall monetization
International companies will increase their effort in India, providing a push on the
local industry
CHAPTER
4
Game Developer Salary Trends
Quick Facts
Developers are
the heart of the
industry
Indian gaming
industry follows
the global trend
Game Dev is
more about
INDIES*
Developers
are the key
Average
compensation
Average
compensation
~80%
Upto 5-6
Lacs
Upto 8-9
Lacs
(Designers)
(Non Devs)**
% of Women
employees
Average
compensation
Average
compensation
~15%
~6-7 Lacs
~8-9 Lacs
(For Women)
(For Men)
Employment#
with Indie
studios
Fresh minds;
no prior
experience
~65%
~40%
Average
compensation
Upto 5 Lacs
(<3 years)
*Having less than 30 people and development of the game should have been self-funded
**Includes people involved in Art, Tech, Production/Project Management and Marketing/Biz Development
#Includes Indie founders or people employed in Indie studios
Talent Overview
Trendsetting the Gen-Y Evolution, Focus Shifting towards Skills
Diversity an increasing trend in the gaming industry
85%
Male
15%
Female
20
40
60
80
100
75%
21%
SELF-EMPLOYED*
MILLENIALS
36%
6%
17%
30%
22%
11%
38%
10%
2%
<3 years
3 to 5 years
6-10 years
11-15 years
30%
>15 years
Trainee
Lead/ Manager
Developer/ executive
Senior Management
Survey Background
% of respondents
Responses by Age Group
2%
>40
24%
30 to 40
54%
25 to 30
20%
<25
Responses by Location
Chandigarh
11%
~7
25%
11%
Jaipur
per cent
Kolkata
Ahmedabad
13%
21%
19%
Chennai
Kochi
Mumbai
Delhi-NCR
Bengaluru
Hyderabad
Pune
Others
15%
Product management
8%
General management
4%
11%
2%
Technology
Art
Design
35%
11%
13%
N=113
NASSCOM Gaming Forum came into existence 9 years ago to come together
on a common platform to share best practices and knowledge both from the business
and the development perspective. Its goal is to build India into a hub for gaming;
improve the industry-government interface and collaboration; enhance international
outreach and access. The Gaming Forum has seven active city chapters: Mumbai, Delhi,
Hyderabad, Pune, Chennai, Kolkata and Bangalore - each of which regularly hosts
developer meet-ups. It also organizes the annual NASSCOM Game Developers
Conference which is the premier industry event in India.
http://nasscom.in.
Email: ngf@nasscom.in
International Youth Centre, Teen Murti Marg, Chanakyapuri, New Delhi 110 021, India
Phone: +91-11-23010199, Fax: +91-11-23015452, E-mail: research@nasscom.in
Website: www.nasscom.com