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Drivers
of Online Gaming in India: The factors
that will drive the growth of online gaming
market in India can be broadly classified
as: Consumer Pull and Game development activities
by market incumbents.
Consumer
Pull: The youth segment, which is the
biggest segment on the Internet, is driving
the demand for games on multiple platforms
like PC, mobile handsets and consoles. The
gaming market in India comprise mainly of
young men and college going students falling
within the age group of 1725 years.
They form the largest segment of the active
internet user base; are more technology
savvy and most of all carry an attitude
to try everything new.
Increasing broadband penetration in Indian
households will drive usage of online gaming
and vice-versa as the gaming experience
is enhanced due to higher speed and bandwidth
when compared to Dial-up connections.
International
experience suggests that online gaming took
off as in-home penetration of broadband
increased in countries like South Korea
and China. Broadband ISPs are also
offering Games on demand packages to users
to encourage them to spend more time online.
Entertainment
seeking behaviour on the rise: Entertainment
appeals to internet users of all age, gender
and affluence. As a genre, entertainment
related applications are accessed by 54
per cent active internet users (Source:
I-Cube 2006).
Online
gaming will add another platform to whet
the appetite of Indian users. Causal games
can be positioned as another arena for entertainment
to appeal to no-core segment like women
and older men.
Increase
in Mobile gamers: Mobile gaming has
grown many-fold in India and downloads of
mobile games is a fast growing component
in the overall Mobile Vas pie. Mobile gaming
is serving to introduce a large base to
gaming notes the whitepaper. Over a period
of Evolution of Gaming In India time many
users who seek an enhanced gaming experience
can be graduated to online gaming.
Game
development activities by market incumbents:
In India the focus in online gaming has
traditionally been on content development
for the overseas market. Now to grow the
domestic market several companies are taking
various initiatives such as:
-
Localisation of games/content to better
address the gaming needs of the target audience:
Though most of the development work is being
done for overseas market,
however, in future the focus would shift
to the domestic market. Currently several
Indian companies are starting to focus on
customising content for the Indian market
using local themes, icons and games.
It
would also include spicing-up the available
international content/ idea to appeal to
a larger audience. Kreeda.com and Games2win.com
are focussed on customising the online gaming
experience for the Indian palate.
-
Creation of gaming zones/ Organised cyber
café chains: They play a critical
role in development of the online gaming
ecosystem and various companies are doing
different things to maximize this opportunity.
Some are opening their own gaming zones
while others are tying up with existing
café and helping them upgrade to
gaming zones by providing marketing support.
-
Mainstream Advertising: To drive traffic
and build awareness, Zapak.com has taken
the mainstream advertising route. This is
generating ineterst and driving traffic
to the site. The key challenge would be
to retain the users through sticky content.
Zapak
says that its mainstream advertising would
also help other companies operating in the
space as it is working at popularising the
category per se. Once users get hooked on
or like the experience of gaming they would
also look at other avenues fro online gaming.
-
Enabling payment mechanisms: Recognising
that the low penetration of credit cards
& debit cards can be a potential bottleneck,
several companies are taking the initiative
in enabling online payment though other
platforms. This is all the more important
because the core gaming segment of users,
school and college students do not have
access to bank cards.
One
of the initiative being experimented with
are Pre-paid gaming cards. These cards would
enable both subscription for the gaming
service and purchase of in-game add ons.
Value chain- From concept to the end user.
The value chain for online gaming is fairly
complex and encompasses a host of entities:
IP owners, developer & ed users. It
also encompasses a host of activities such
as Conceptualisation, Production.
The
chain starts with the IP owner owing a concept
around which a game may be developed. Are
usually the content or game developers.
For game developer, preproduction work consists
mainly of concept art, game design and game
dynamics.
Production
constitutes final concept arts, modelling,
animation and programming. Testing tends
to be a big task for game developers; there
is a wide range of formats and platforms
that the games have to be tested for.
In
a majority of cases, for operational efficiency
and financial benefits forward or backward
integration has taken place in the Indian
market. As a result, either there are development
studios which publish the developed games
themselves or development studios which
own the idea/ intellectual property based
on which they develop games.
There
are several companies who are producing
their own games and distributing these in
India. These include players like Nazara
Games, Level Up, etc. Out of these, Zapak
is
a prominent one, producing their own titles
and distribute these through their portal
platform.
Carriers,
portals have the technology medium for distributing
a game to the audience. Established publishers/developers
directly approach the portals and carriers,
while the smaller ones have to go through
Aggregators. Indiagames is one of the aggregators
offering Gaming on demand service.
Gamers determine the kind of business a
game would do average, above-average,
or below-average based on the acceptance
and usage of a game title. Most portals
and carriers have developed accurate mechanism
for estimating the time a game would take
to break even.
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