The online gaming industry in India is expected to touch $1 billion by the year 2021. From the current $360 million the industry is expected to grow at the rate of 20 percent to reach the estimation. These numbers throw light on the huge growth potential lying ahead for the developers in the country. On the gamers front too, the number of online gamers in the country is expected to grow to 310 million by 2021.  Besides, there have been 117 percent rise in the searches for online games too.

According to industry experts, the concept of gaming is transforming. Today, a lot of game developers working in the industry were gamers before who are keen on charting successful careers in this industry. On the other hand, growth in the mobile games due to the penetration and affordability of mobile phones has given an edge to many home-grown and traditional card games like the online rummy game in the recent times. 

However, the picture is not as glossy as it appears. There are several challenges abound for the industry in its path of growth. Find a couple of them as below.

1. Monetization :

Making money is one of the most significant objectives of any gaming company in the country. But, it is also one of the biggest challenges before them. Any gaming company can monetize in three ways - in-app purchases, advertisements and focus on other gaming platforms. However, in the Indian context, it is tough to monetize for the companies as users prefer freemium games over pay-to-play.  Thus, it leaves the companies to depend on downloads and struggle hard to achieve their revenues. Also, it is one of the critical reasons for the closure of many gaming companies in the country who have a dearth of funds and are unable to operate despite having unique games.

2. Need for unique products :

Any is growth is sustainable only when it has the potential from within to achieve more significant milestones. It is observed that the approach of many gaming companies has also been the prime reason for their cash crunch. The existence of many me-too games in the gaming market has crippled the growth of such companies. The industry can expect to grow only when gaming companies develop unique games that are capable of capturing the imagination of the users.

3. Resource and capital intensive :

As game development is a talent-intensive job, it requires the suitable backing of both talent resources and the necessary capital for gaming companies to flourish. While there are good examples within the industry itself where significant investments have come in for home-grown companies and put them on the growth trajectory, there are many others who are looking for the backing of proper funding for their growth initiatives.

The action plan :

The country has the best talent pool when it comes to developers. The need is for the right entrepreneurial initiatives along with investor funding to develop innovative gaming products, and marketing activities to give an impetus to its growth. In the recent years, the success stories of many gaming startups have clearly outlined the vast growth potential that the industry holds.


Published by Arina Smith