Video Games have been a popular pastime across the world since the 1970s.

The popularity of video games has

grown with the advancements in digital technology, mobile communications and the Internet in the 1990s.
Gaming can be classified into PC gaming, Console gaming, Wireless gaming, Multiplayer gaming and Massive
Multiplayer Online Role playing Games (MMORPG).

In India, mobile gaming and console gaming are the most popular forms of games followed by PC gaming and
MMORPG. The Indian gaming market is very small when compared to other developed countries such as the US.
This is because the awareness for gaming has been primarily limited to urban areas. 

This also highlights the vast untapped potential in India. With the increased penetration of mobile phones and
personal computers in small towns and cities, industry experts estimate the gaming market to grow in the near
future.

According to a report by In-Stat/MDR, a market research firm, the market for mobile gaming in India was
expected to be around US$26 million by end of 2004.The market was expected to reach US$336 million by 2009.
The penetration of cell phones in India was higher when compared to personal computers; hence more people
were likely to get their first gaming experience on a cell phone. Moreover, a large proportion of youth were keen
to try out new games. Cellular service providers such as Hutch and Reliance had capitalized on the popularity of
mobile gaming in order to attract more subscribers by offering games for download through their websites. 

The online gaming sector in India is being driven by the increasing number of Internet users, increase in
disposable incomes, and propensity to spend among the youth. The growth of Internet cafes such as Sify i-way
and Reliance WebWorld, who have installed online games to attract more consumers, has also contributed to the
rise in online gaming in India. 

The PC gaming segment in India mainly consists of youth and college students. The growth in this market is
being propelled by the growth in the personal computer market. PC sales in India have increased on account of
the decrease in prices due to decrease in import duties on hardware components and increased competition.
Microsoft Game Studios, the gaming division of Microsoft Corporation, had conducted the “Halo” (in 2003) and
“War of a Million'(in 2005) PC gaming championships in India. The positive response received by these
championships highlighted the growing popularity of PC gaming in India. However, piracy and price competition
among the distributors were seen as the key challenges for this segment. Console gaming is still at a nascent
stage in India. Individual consumers, schools and IT/ITES are the target market for console gaming. 

India also has great potential to become an attractive destination for outsourcing of gaming development
activities. India can capitalize on its strong reputation for outsourcing of IT/ITES services in this regard. But in
the outsourcing sector India will have to compete with South Korea and Taiwan whose talent pool is greater than
that of India with regard to game development. India needs to establish special training institutes to develop
quality professionals. In addition to outsourcing, Indian companies can team up with their foreign counterparts
to co-produce games.

In 2006, Indian gaming companies and Indian subsidiaries of foreign gaming companies established the Indian
Games Industry and Trade Association (iGITA). iGITA would help Indian gaming companies to secure a strong
foothold in the global gaming development market. Indian gaming companies are in the process of developing
products that are targeted at both domestic and international markets. Despite the growth and opportunities for
development, the Indian gaming industry has to deal with challenges such as scarcity of skilled professionals and
high prevalence of piracy.

Keywords

Video Gaming, India, Industry Report, Personal Computer gaming, Console gaming, Massive Multiplayer Online
Role playing Games (MMORPG), Halo, Wireless Mobile Gaming, Reliance WebWorld, NASSCOM, IT/ITES services,
Talent Shortage, Animation, Outsourcing Game Development, Software Piracy, Indiagames, Dhruva Interactive,
Mauj Telecom, Paradox

Ever since the early 1970s, when Atari1 released the first popular arcade video game Pong, video gaming has
become an increasing popular pastime and has had a profound economic and socio cultural impact in many
countries across the world. The advances in digital technology, mobile communications and the Internet since
the 1990s, have further fuelled the growth of the global gaming industry.
Gaming can be categorized into five main classes:

PC Gaming- Involves playing video games on a personal computer (PC). The advantage with PC gaming is that it
offers rich multimedia experience and easy usability. 

Games can be played using storage devices such as CDs, DVDs or online (with a fast and stable internet
connection). Console Gaming – In console gaming, games are played using game consoles.

Apart from a game console, it requires an output device such as a computer monitor or a television and an input
device called controller. Some of the popular gaming consoles are Sony's Play Station and Microsoft's Xbox.

Wireless Gaming - Wireless gaming refers to the games played using handheld devices such as mobile phones,
personal digital assistant (PDAs),2etc. 

Multiplayer Gaming - As the name suggests, this involves playing games with other gamers (usually between five
to ten players), sometimes even with players in different parts of the globe...