Online Gaming - Addiction is Business

 


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In the wildest of my dreams, I would never imagine gaming becoming bigger than movies, music, and television shows but, I am wrong. Gaming is not a niche anymore; it is rapidly turning mainstream and the pace is incredible. 

This small space has seen such an influx of startups and investments around the globe, which makes me believe that gaming is the new wave, and many would enjoy riding it! Let us talk about the disruption it has caused.


Categories of Games - 

So, there are 4 categories of online games, all in all. 

1. Traditional Games (for instance- Candy crush/Temple Run)

2. Skill-based games (for instance- Dream 11)

3. Real-Time money games (for instance- MPL)

4. Esports / Electronic sports

All the categories have a unique business model, some are seeing a rise in the market share while others, decline. If I talk about the near future, there is a concept of ‘Cloud gaming’, wherein you would not need the physical hardware required by the game! You do not need the console or anything.

Investments in the Space 

India is always leading the game in terms of being such a great market! The game publishers from the US, China desperately want to have a pie of the great Indian gaming scene! 

As per the record, there are 365 Million gamers in India in 2019 which is expected to go up to 440 Million by 2022, this is more than the US’ population! You might ask why? The answer to this is simple, demographic. 75% of the Indian population is less than 45 years of age. We have the desired volume, desired audience. 

Multiplier Effect

Heard of Investment multiplier? where an initial investment leads to income creation of many more times. Throughout the evolution of gaming, from conventional coin-operated machines to high-end mobile phones now. Opportunities are endless and for everyone!

Gamers make money not only by playing the game or competition but by streaming it as well. On platforms such as YouTube, where these gamers Livestream PUBG or Call of Duty, people enjoy watching it.

Gaming Ecosystem

So, there are a lot of segments involved, through which you get the final product. Right from the software developer to the distributor, big giants are enjoying the pie! For instance, Google Play is the distributor and Intel or Nvidia is a hardware developer. In synergy, they fulfil the ecosystem and cater to the end consumer.

Hindrance

If you ever think box office is making more money than PUBG, you are wrong. In 2019, the online gaming revenue was $152 billion whereas the movie business just garnered a revenue of $43 billion. 

But there is never a picture-perfect! In India, there is a distinction made. It categorizes games into two categories, ‘Skill and Luck’ where in the government is more averse towards the game of luck. The reason being, it might promote the culture of gambling, which the government does not want.

Make in India

The platforms where we play, are registered as companies, therefore they pay corporate taxes. Now, taxes are the means of revenue for the government. The tax revenue from gaming is expected to be 2800 Crores by 2022. It also creates direct employment for 40,000 people, so it is a win-win for the economy, consumers, and government.

Needs of the Industry

India is lagging when it comes to software/hardware development. We offer a great market for gaming companies in the US and China. But when it comes to creating a world-class game, we fall short! 

More foreign players should put money in India, for that they need a stable regulatory environment so, the government needs to play its part well. The unorganized sports betting should be legalized, to allow more players. 


Mobile: The Future

As the data and mobile phones became affordable, many people began using smartphones with 4G data. This was a boon for any digital/tech startup, so does online games. No wonder, you might play PUBG on your phone the entire day in pursuit of a chicken dinner!

Conclusion -

This sector has a much bigger market size, caters to a large base. It is the fastest developing industry on the planet. Many would rise, many would fall but who emerges as the ultimate winner, needs to be seen. We play, we enjoy but at the end of the day, it is all business! 

Written by – Manvinder Arora
Edited by – Ivanova


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