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Online gaming just a Rs 21 crore mart: IMRB

The online gaming industry in India is worth Rs 21 crore, according to a report published today by IMRB International on behalf of the Internet and Mobile Association of India (IAMAI).
The online gaming market in India, although miniscule compared with such developed gaming markets as Korea, China, Japan and the US, is a sure indicator of the vast commercial and social potential of the segment. In India, as in more developed markets, school and college going youths between ages 17 and 25 are the key drivers of this segment.

Currently, most of the revenues in this segment come from organised cyber cafes (Rs 12.17 crore) & from subscriptions (Rs 6.6 crore). The contribution of advertising (Rs 2.24 crore), which is currently low, should go up over the next 2-3 years in line with developed gaming markets such as US where it accounts for close to 40 per cent. Almost 20 per cent of this revenue (Rs 4 crore) accrues directly to international players not based in India. It is expected that over the next 2-3 years, this proportion would go down as more Indian gaming portals come up and establish their presence by providing localised content.

The study reveals that at this point in time, most Indian gaming portals are evaluating various alternative strategies for long-term monetisation. Currently, most are on a free model and are looking at advertising revenues to sustain the first phase of growth. There are plans to introduce monthly subscriptions or subscriptions to higher levels as users become more comfortable.

Most portals acknowledge that advance advertising options such as in-game placements will take some time to enter the lexicon of mainstream advertisers, most of whom are just beginning to experiment with online advertising.

Commenting on the study, Subho Ray, president, IAMAI, said: "Online gaming is at a very nascent stage in India. Our aim in conducting the study at this early stage was to bring to light the current status. We believe that early interventions can enable the industry to achieve maturity in a short span."

According to Ray, there are three broad issues that could act as impediments to the progress of this segment: a) the negative perception of gaming, especially online gaming, among parents b) the poor enabling infrastructure, including connectivity & hardware constraints and c) lack of recognition of the importance of this segment in increasing the penetration of internet by the government. It would be a great advantage to the gaming community in India if online gaming was to be declared "e-Sports" and all the advantages that accrue to sports currently are extended to online gaming as well.

Online gaming is defined as "gaming that requires the use of a PC and Internet connectivity, either played online or downloaded and played online later, capable of supporting either single or multiple players, where the player(s) is in India".

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