A STUDY ON EVOLVING LANDSCAPE OF ONLINE GAMING

INDUSTRY IN INDIA

Project submitted in partial fulfilment of the requirements for the

award of the degree of
MASTER OF BUSINESS ADMINISTRATION
of
BENGALURU CENTRAL UNIVERSITY

By
DEEPAK REDDY. B
Reg. No. MB200832

Under the guidance of

Prof. Ashwini. A. N
(Assistant Professor)

ADARSH INSTITUTE OF MANAGEMENT AND INFORMATION TECHNOLOGY

Bengaluru University2020-2021

1
 DECLARATION

I, DEEPAK REDDY.B student of Second Year MBA (Semester – IIIrd) ADARSH

INSTITUTE OF MANAGEMENT AND INFORMATION TECHNOLOGY,
BANGALORE Affiliated to Bengaluru Central University hereby declare that “A STUDY
ON “A STUDY ON EVOLVING LANDSCAPE OF ONLINE GAMING INDUSTRY
IN INDIA” is the result of the project work carried out by me the guidance of Prof.
Ashwini.A.N Associate Professor in partial fulfilment for the award of Master’s Degree in
Business Administration by Bengaluru Central University.

I also declare that this project is the outcome of my own efforts and that it has not been
submitted to any other University or Institute for the award of any other degree or Diploma or
Certificate.

2
 ACKNOWLEDGEMENT

This project report has prepared through continuous desk study during the period of 3 weeks.
This task would not be possible without the support and continuous assistance of some
helpful hands.

I must first take the opportunity to thank Adarsh Institute of Management and
Information Technology and Bengaluru University for giving me the opportunity to
complete my project on such a reputed organization.

I express my sincere gratitude to Dr. Venkataraman Director and Principal, of Adarsh

Institute of Management and Information Technology, Bangalore and mostly I am
thankful to my honourable mentor Prof. Ashwini. A. N Assistant Professor of Adarsh
Institute of Management and Information Technology, for assigning me to prepare this report.
She guided me to prepare the whole report, right from the research topic suggestions to
conclusion with her continuous feedback.

And to conclude, I would like to express my sincere gratitude to all the faculty members,
guides, individuals who have helped me to prepare this report. For me it has been a great self-
learning experience that helped me to figure out how does such a huge business survives and
run in the industry.

3
 GUIDE CERTIFICATE

This is to certify that the Project Report title Submitted by Mr. Deepak Reddy .B Reg No :
MB200832 to Bengaluru Central University, Bangalore for the award of Degree of
MASTER OF BUSINESS ADMINISTRATION is a record of work carried out by he/her
under my guidance.

Place: Bangalore

Date: Signature:

4
 CERTIFICATE OF ORIGINALITY

(To be given by the Institution on letterhead)

Date:

This is to certify that the Project report entitled “A STUDY ON EVOLVING LANDSCAPE
OF ONLINE GAMING INDUSTRY IN INDIA” is an original work of Mr. Deepak
Reddy.B; bearing University Register Number: MB120832 and is being submitted in partial
fulfilment for the award of the master’s degree in Business Administration of Bengaluru
Central University. The report has not been submitted earlier to this University /Institution
for the fulfilment of the requirement of any course of study. Mr. Deepak Reddy.B is guided
by

Prof. Ashwini. A. N who is the Faculty Guide as per the regulations of Bengaluru Central
University.

5
 Table of Content

Chapter Title Page no

no
1 Introduction 1-10
 Introduction about the topic
 Statement of the problem
 Need and relevance of the study
2 Methodology 11-14

3 SOWC of the Research 15-17

4 Out Come of the study 18-19

5 Experience and leaning Conclusion 20-22

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A STUDY ON EVOLVING LANDSCAPE OF ONLINE GAMING
INDUSTRY IN INDIA

ABSTRACT

The gaming sector in India is flourishing, and it is one of the most important and innovative
industries in technology today. In recent years, this industry has experienced a variety of
obstacles. Some of the key concerns were high tax rates, a lack of assistance, and a lack of
knowledge. Gaming is finally being embraced and given the credit it deserves. Because of the
accessibility and affordability of smart phones and high-speed internet, mobile gaming has
become a popular form of entertainment for people of all ages and from all walks of life in
India. Localized games are expected to acquire popularity as penetration, convenience of use,
awareness, and, most crucially, a sense of familiarity grow. In India, there is a large sports
fan base as well as internet infrastructure. Online Fantasy Sports Platforms (OFSPs) might
help this industry flourish. a larger user base, evolving technology, and government These are
a few of the fundamental variables driving the increased investment. The objective of this
essay is to evaluate current literature on the amplification of the gaming sector in the Indian
economy, the variables that induced this expansion, the driving forces behind massive
investments in this area, and recent investments that are critical to this business.

Introduction

To begin with, online gaming emerged as a new form of entertainment within the internet.
Whether it's to compete against a pal for high scores or to show off complex combinations in
a combating game, both are meant to pass the time and enjoy interacting with friends. As
time passed and generations changed, so did online gaming. They became more complicated,
tailored to higher graphics, and demonstrated resemblance, if no longer hints, of realism. This
branched out into several genres, each serving its own purpose and catering to distinct niches.
One of these branches is online video games, which now not only serve as a way to entertain

7
oneself, but also as a verbal exchange hub, wherein humans from all over the world can
interact in a single, digital world.

The beginnings of India's online gaming industry can be traced back to the early 2000s, when
console and PC gaming drew a large number of middle-class Indians to digital gaming
platforms. Despite the fact that due to the expensive cost of PCs and consoles consumption
was limited to a niche client sector it highlighted the promise of online gaming in India. As
the quality of these games improved in Western markets young male gamers with access to a
PC and an internet connection fell in love with titles like Call of Duty, FIFA, Counter-
Strike, and Dota.

The introduction of social media to online gaming in the mid-2000s exposed a big number of
Indians of all ages, genders, and socioeconomic categories. On social media sites, people
began to discover, learn, and share online games. Farmville and Mafia Wars are two
Facebook games that have gained a lot of popularity.

The gaming culture in India is developing. The COVID-19 pandemic-induced lockdown is

the most recent element that has contributed to the expanded user base for mobile gaming
applications.

Higher smartphone penetration, a greater range of mobile-first games, increased internet

access, and influencers with a large following base are all factors that have contributed to
India's gaming boom.

India's gaming business is expected to reach a $5 billion valuation by 2025, according to a

report by Sequoia India and Boston Consulting Group. According to the report, the current
user base is around 300 million, with corporations diverting significant marketing budgets to
shape this market.

India is currently the fourth largest online gaming market globally, the industry requires a
strong regulatory and legal environment to help the business scale quickly and achieve its
true potential.

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History

As the decade progressed, the cost of technology, servers, and the Internet fell so low that fast
Internet became the common land allowing previously unheard genres such as massively
multiplayer online games (MMOs) to gain popularity. World of Warcraft (2004), for
example, dominated the decade. Several other MMOs, such as Star Wars Galaxies, City of
Heroes, Wildstar, Warhammer Online, Guild Wars 2, and Star Wars: The Old Republic,
attempted to follow in Warcraft's footsteps but failed to make a substantial influence on
Warcraft's market share. The MMORPG community has created its own lingo and
metaphors, as well as an unwritten set of social rules and taboos, over time.

Defense of the Ancients (2003), a new sort of online game that debuted alongside World of
Warcraft, introduced the multiplayer online battle arena (MOBA) style.

DotA, a community-made mod based on Warcraft III, has grown in popularity.

As interest in World of Warcraft declined, others began to develop their own MOBAs,
notably Heroes of Newerth (2009), League of Legends (2010), and Dota 2 (2012). (2013).
With Heroes of the Storm (2015), Blizzard Entertainment, the owner of the Warcraft
franchise, debuted its own take on the MOBA genre, emphasising various original heroes
from Warcraft III and other Blizzard franchises. The genre had become a significant element
of the esports category by the early 2010s.

With the debut of Battle born and Overwatch in 2016, hero shooter games, a type of shooter
games influenced by multiplayer online battle arena and earlier class-based shooters, saw a
significant increase in popularity during the final half of the 2010s.

Paladins (2018) and Valorant (2018) added to the genre's growth (2020).

With the advent of Fortnite, the battle royale game model gained a lot of traction.

Apex Legends (2017), PlayerUnknown's Battlegrounds (2017), and Fortnite Battle Royale
(2017) (2019). With the release of Call of Duty: Warzone in the 2020s, the genre's popularity
grew even further (2020). Within months of their release, each game had tens of millions of
players.

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Platforms

Console gaming

A computer system designed specifically for playing video games and connected to a
television or other video and audio display. A computer's control or monitoring unit, which
includes the keyboard or keys, switches, and other components.

Browser gaming

A browser game is a video game that is played through a web browser on the World Wide
Web. These games can be single-player or multi-player and span all genres. The majority of
them are free to play. HTML, CSS, JavaScript, and WebAssembly are the standard web
technologies used to create it.

Player versus environment

Player versus environment (PvE) is a type of video game in which players compete against
the artificial intelligence (AI) of the game rather than other players. In most player versus
environment games, the player fights AI-controlled opponents of increasing degrees of
difficulty while moving through the storyline.

Player versus player

Is a sort of multiplayer interactive conflict between human players within a game. This is
frequently contrasted with player versus environment (PvE), in which the game controls the
opponents of its players. To distinguish between gamemodes, the phrases are most commonly
used in games where both activities exist, such as MMORPGs, MUDs, and other role-playing
video games. PvP is a term that can be applied to any game or feature of a game in which
players compete against one another. When utilised in role-playing games, PvP is frequently

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contentious. The majority of the time, players' talents are vastly different. PvP can even
inspire more experienced players to assault and kill less experienced players right away. In
games that incorporate, but do not focus on, player killing, PvP is often referred to as player
killing.

Start of the Digital Gaming Era.

Digitization was a development that altered many aspects of how conventional businesses
operated. With the emergence of computers and the integration of various networks, many
organisations' pen and paper culture of manually managing records and data transitioned to a
completely digital realm. The first gaming gadget was launched in 1940 and was based on a
mathematical game called Nim, which was played by over 50,000 people over the course of
six months. More than 90% of the games were won by the computer. The "Brown Box," the
first gaming system for commercial in-home use, was unveiled three decades later, in 1967. It
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was designed to play a variety of games such as ping pong, checkers, and sports. Accessories
were added.for games that had a different game playing style for users were included. A light gun for
a target-oriented shooting game. Users were featured in games that had a different game playing style.
A light gun for a shooting game with a target. For playing golf putting games, a separate toggle
attachment is utilised. Between August 1972 until 1975, the Magnavox Odyssey was discontinued,
with around 300,000 consoles shipped. Mismanagement of in-store marketing activities, along with
gaming still being a foreign idea in the United States, resulted in dismal sales at the time. This was the
beginning of digital gaming.

Launch of Arcade Gaming

The introduction of arcade gaming firms Sega and Taito piqued people's curiosity by establishing a
new phenomenon of arcade gaming. In 1966 and 1967, electromechanical games such as Periscope
and Crown Special Soccer were aggressively advertised. Atari was the first corporation to establish a
large-scale gaming community. These games fostered competitiveness among players, who would
compete by playing and recording high scores in order to become the top scorers [2]. Atari pioneered
a new business centred on arcade gaming. In 1973, Atari began selling the first electronic video game,
Pong, for $1,095 in the United States. The gaming devices might soon be seen in pubs and retail
centres all around the world. Between 1972 and 1980, the video game market grew at a rapid pace. In
1985, 15 businesses began producing arcade games. Empire, a strategy game for eight players, was
designed in 1973 using PLATO, or Programmed Logic for Automatic Teaching Operation. It was one
of the very first computer-based educational systems. PLATO was only available to colleges and
institutes, as well as Atari, who could afford the cost of several connections and computers to join the
network. PLATO was one of the earliest stages in online gaming and illustrates the technological
breakthroughs brought about by the internet.

Gaming at Home

Personal computers became widely used in 1970, and gaming consoles became a reality. Advances in
technology, such as Intel's first microprocessor, resulted in the development of games like Gunfight, a
multiplayer human-to-human combat shooter. The gaming community grew in tandem with the
growth of the home gaming culture. The incorporation of microprocessors resulted in the
establishment of a new age of gaming. In 1980, sales increased to two million units. In the late 1970s
and early 1980s, a sense of community was developed among individuals who were fond of the new
growing culture of gaming, with many gaming publications for people to obtain information and
know what the industry's next trend was.

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The Rise of the Gaming Culture in Personal Computers

Personal computers such as the Commodore 64 and the Apple II were gaining popularity,
while game consoles were falling in favour. The computers were sold at a low cost and were
marketed and touted as a good choice for the family. Personal computers have a better and
more powerful CPU than consoles, allowing them to go to the next level of gaming. The
computers came with technology that allowed gamers to build and develop their own games.
Bill Gates also created a simple game called Donkey, which Apple included on its application
platform for mobile phones in 2012. Early technologies, such as the Macintosh and various
consoles, enabled gamers to play video games. Minimaze was added to the Atari ST,
allowing 16 consoles to communicate through their MIDI-OUT and MIDI-IN ports. With the
emergence of the LAN gaming boom, the notion of multiplayer gaming became popular
among the general public. It gained popularity with games like as Marathon and the first-
person shooter Quake. Furthermore, the introduction of low-cost Ethernet cards in computers
for improved networking, as well as the advent of an upgraded window operating system
known as Windows 95, boosted the popularity of multiplayer gaming to new heights. The
game business experienced a transformation when computers connected over a LAN network
and, subsequently, the internet. This altered the usual gaming experience, giving players the
opportunity to compete and play with other players.

Online Gaming on Consoles

Until the debut of next-generation sixteen-bit systems in 1990, the internet gaming culture
was not widely practised among gamers. The internet evolved into a technical portal via
which consumers could download and do other games activities on their consoles. Atari,
Sega, and Nintendo attempted to enter the online gaming market with the assistance of cable
providers, but were unable to do so due to various internet-related issues such as poor internet
and a lack of capacity. Later in the year 2000, Sega released the Dreamcast, a machine that
solved these internet concerns. It struck players as a new system and became the first

13
internet-centric system to acquire popularity, but it eventually failed, affecting Sega's
console.market drastically. The lessons learned from Dreamcast's failures and sales
established a route for the next generation of consoles such as Sony's PlayStation and
Microsoft's Xbox.

The Modern Age of Gaming

In terms of the Internet and computer processing improvements, the year 2000 blossomed in
many technological aspects. The aesthetics, game speed, and processor speed were all
upgraded to give gamers with a better gaming experience. Because of the decline in the price
rate of the internet's affordability and accessibility to a billion people worldwide, this
experience was made possible. Online markets such as the Xbox Live Market Place and the
Wii Shop innovated and altered the way people buy games, update them, and communicate
with other gamers. According to the most recent ESA gaming research, 54% of gamers
believe gaming helps them connect with friends, and 45% believe it is a method for them to
relax is a way to connect with their family. By the time new versions of the Xbox and
Playstation were released, online multiplayer gaming had become one of the most important
aspects of modern gaming. Clan culture, in which many players joined a clan and regularly
played first-person shooter games, established a new fad among gamers.

Mobile Gaming

Smartphones represented a huge advancement in mobile phone technology. They have made
various improvements to the device setup, such as making the CPU more powerful and
raising the RAM amount, which has resulted in a smaller gap between PC and mobile
phones. However, one of the most recent emerging technologies in video gaming is 4k
technology, which allows gamers to have an outstanding experience with more than 8 million
pixels. The app store allowed not just developers but also purchasers to create mobile games.
Mobile phone users who were not even passionate gamers were able to play games ranging
from Angry Birds to Call of Duty on the palm of their hand. This was a significant movement
for the gaming industry to come into the mobile phone space. It is time for the game business
to enter the mobile phone market. Rovio gained $200 million from the popular game Angry

14
Birds in 2012, and it surpassed 2 billion downloads in 2014. Mobile gaming firms' income
produced on app stores has created significant revenues, with the number of downloads
growing day by day. Alternate Reality and Virtual Reality technologies were also better
utilised by mobile phones.

The Future

The games got more lively as the 3D design developed. Furthermore, more pixelated and
realistic visuals have contributed realistic motions to the game, attracting players 2. Artificial
Intelligence (AI): Since the beginning of gaming, artificial intelligence (AI) has been a
component of it (where the user or the gamer is playing against the computer). However,
artificial intelligence (AI) is now a developing, changing, and increasingly sophisticated
technology. The games are far more difficult than previously, and AI is becoming smarter by
the day. AR, VR, and MR: The Gaming Future — Virtual reality, or VR, is the most recent
kind of technology that is changing the face of the video game industry. It not only lets
players to interact with the characters in the game, but it also allows them to create their own
in the game but also enhances the virtual experience of The games got more lively as the 3D
design developed. Furthermore, more pixelated and realistic visuals have contributed realistic
motions to the game, attracting players 2. Artificial Intelligence (AI): Since the beginning of
gaming, artificial intelligence (AI) has been a component of it (where the user or the gamer is
playing against the computer). However, artificial intelligence (AI) is now a developing,
changing, and increasingly sophisticated technology. The games are far more difficult than
previously, and AI is becoming smarter by the day. AR, VR, and MR: The Gaming Future —
Virtual reality, or VR, is the most recent kind of technology that is changing the face of the
video game industry. It not only lets players to interact with the characters in the game, but it
also allows them to create their own 4 .Blockchain in Gaming: By utilising Blockchain for a
user's digital identity, he or she may protect the login information for the many games that he
or she plays and boost security. It can also aid in the integration of virtual currencies into the
gaming arena by allowing developers to collect royalties for products and other micro-
transactions across the gaming ecosystem. Blockchain advantages include the tokenization of

15
virtual commodities or assets in the game, as well as the safe and secure storage of game-
related data.

Factors leading to the growth of building a progressive gaming culture in India

Many reasons contribute to the Indian population's developing culture of online gaming. One
such cause is the increasing usage of digital payment systems in India. Many individuals have
converted to online payment methods as a result of demonetization and the Digital India
campaign. It was a lengthy and steady transition for Indians, but with companies large and
small, and a simple method to track your transactions, it was a successful one. People may
also pay for numerous applications and games that need in-app purchases, etc. The ongoing
growth of technology makes technology more accessible and inexpensive to the general
public. Virtual reality technology is becoming widely accessible to the Indian public. With
regards to gaming. With the gaming development playground serving as a training ground for
local creators, we may expect a flood of new online games in the next years. Connecting with
the local audience or consumers is one of the most crucial things. Keeping this in mind, one
of the primary drives is that gaming themes, content, and gameplay are built with local
languages in mind. The number of Internet users in India is predicted to reach 540 million by
2021.

The Future of online gaming in India:

Improvement in age and gender parity:

People have switched and changed to the evolving environment as a result of the growth
produced by digitization. As the number of individuals using a mobile phone everyday grows
in the millions by the day, online gaming is certain to experience a shift in the age
distribution of the players. The contribution provided by gamers between the ages of 25 and
40 years old is predicted to account for 42 percent of the entire players database by the year
2021. The major reason for this transition might be a relatively big influx of more than 30
million gamers between the ages of 20 and 30, as well as the use of the internet to play online
games. Consider the following scenario in terms of gender parity, women will account for
33% of the Indian population by 2021, expanding at a CAGR of 35%. Increased revenue for
gaming firms by developing freemium games: The Indian gaming market is price sensitive as
well as value for money. The majority of Indian gamers or those who prefer to play any game
online look for free games or alternatives to premium ones. China's gamers are comparable to
those of India. Chinese players pay for virtual goods, extra lives in games, prizes, and level

16
progression. The same may be said for Indian players. Furthermore, many businesses
generate income by utilising the gacha mechanism, which is a chance-based system in video
games. If the likelihood of receiving a reward is 50/50 Gamers pay in expectation of
receiving any prize that will assist them in playing the game. The gacha mechanism is
gaining traction in a variety of game businesses. The multiplayer gaming culture increases the
likelihood of players playing in the future. With digitalization being such an essential aspect
of the online gaming culture, a new payment method is critical for attracting new players.
Payment methods such as e-wallets, debit or credit cards, and so on are popular and provide a
wonderful opportunity for gaming enterprises to expand economically. Developers can
capitalise on the prevalence of payment options in the Indian market.

The user might pay for the following stage using gift cards. Adoption and use of mobile
internet by stakeholders: In India, the projected projections for smartphone and internet users
are 470 million and 735 million, respectively. People's perceptions of buying a feature phone
may alter when the price of mobile phones falls. Currently, the Indian market accounts for
only 30% of online gaming among the internet population, but it is predicted to close the gap
with industrialised nations, where approximately 70% of the population plays games online.
Many changes are required in the gaming environment as a whole. The online gaming
industry will undergo significant changes in the next years.

 Games with increased visuals and quality

• Enhancement of gameplay experience through videos

• Launch of OEM gaming devices

• Telecom firms will provide affordable data networks for gamers

eco-system

Rise of new and emerging technologies in online gaming

Analysis of Indian Gamers

The average Indian online player is a man between the ages of 18 and 24. The younger
generation and population prefer online gaming. 60% of smartphone gamers are under the
age of 24. They are more likely to be tech-savvy and spend more time online. Also, like the
young, homemakers and seasoned professionals like playing online games, which is primarily
owing to the availability of low-cost internet. According to gender, males account for 83

17
percent of internet gamers. Most of the time, friends and family present the desire to develop
a gaming habit or a higher predilection for online gaming. People that share similar interests
interact and feel a sense of belonging to a group. Furthermore, many people find that gaming
aids in their Reduction tension and have a positive attitude. It's a terrific exercise for them.
The most common types of player participation levels are puzzle, action, and adventure.
There are also various factors to consider if a person wants to have the best experience
possible while playing it. Male gamers, for example, are more concerned with memory
consumption, data use, graphic quality, and so on, whereas female players prefer regular
game upgrades. More than one-third of a player's money is spent on gaming when they pay
for a game download or other gaming services provided by the firm. In terms of hardware,
hardcore gamers or people who spend the most of their time playing video game. Although
consoles and big monitors are preferred for gaming, mobile phones are the most popular
gaming devices due to their low cost, ease of use, internet connectivity, and multi-purpose
functionality.

The gaming business in India has experienced the following obstacles in recent years

Increased tax rates

Due to hefty taxes, gaming equipment such as VR headsets, gaming consoles, graphic cards,
and so on were relatively expensive in India. Purchasing these products was difficult due to
the fact that more than half of the Indian population is made up of middle-class households.

Inadequate awareness

People used to believe that gaming is just a hobby and it can be nothing more. The innovative
and high ranging career paths in this sector were being overlooked. There were not many
courses related to game development available as well.

A lack of assistance

Domestic companies or individuals received minimal support for the games they developed.
Multinational games, such as PlayStation, Xbox, and Fortnite, piqued gamers' curiosity.

The societal mindset

The 'go with the flow' mentality has always hampered the advancement of creative fields.
Individuals who go on to become doctors, engineers, or professors are celebrated all around

18
the world. Individuals striving to make a name for themselves in the game industry, on the
other hand, have not earned the same amount of societal recognition.

Gaming companies have genuinely 'upped their game' in recent years. With approximately
75% of the population under the age of 45 and increasing urbanisation, the gaming industry is
growing at an exponential rate. Increased smartphone usage and the introduction of 4G
connections have resulted in drastic changes for this industry. Finally, video games are being
recognised as an art form. According to the Federation's website According to the Indian
Chambers of Commerce and Industry (FICCI), internet gaming in India would expand faster
than online gaming internationally.

REASONS FOR GROWTH IN GAMING INDUSTRY

GAMING INDUSTRY GROWTH REASONS

Personalization of content

Game makers have understood that creating localised content is the best method to target the
Indian market. Many Indian festivals, such as Diwali, Eid, and Holi, are acknowledged by
large game production firms, and unique events associated with these festivals are included in
the game. Many Indian-originated games, such as Ludo and Teen Patti, have lately gained
popularity. Furthermore, gaming businesses are releasing games in regional Indian languages,
which fosters inclusivity.

Game makers have understood that creating localised content is the best method to target the
Indian market. Many Indian festivities, such as Diwali, Eid, and Holi, are honoured by the
massive game production industry Companies and special events associated with these
festivals are also incorporated in the game. Many Indian-originated games, such as Ludo and
Teen Patti, have lately gained popularity. Furthermore, gaming businesses are releasing
games in regional Indian languages, which fosters inclusivity.

Everything is being gamified.

19
According to research, incentives in games provide us with a sense of accomplishment. As a
result, if a task contains games, we are more likely to complete it (such as meeting our daily
physical activity goal). The global advancement of technology, such as artificial intelligence,
has permitted the gamification of numerous parts of our life. Gamification offers a wide
range of applications, from receiving coupons as incentives from shopping websites to
integrating AR and VR in many businesses. Gaming is predicted to become all-encompassing
in the near future.Increased Smartphone and internet penetration.

India has surpassed the United States as the second most populous country in terms of
internet and smartphone usage. Digital payments are becoming more widely accepted, and
the country's IT sector is thriving. This trend is a result of technology advancement and the
decreasing cost of cellphones in recent years. As a result, mobile games are projected to
dominate the industry in the next years.

20
 CHAPTER 2

REVIEW OF LITERATURE AND METHODOLOGY

REVIEW OF LITERATURE

By Ananya Bhattacharya (February 19, 2019) Over the past six months, India’s most
popular mobile game, Player Unknown’s Battlegrounds (PUBG), has faced severe criticism
for becoming an unhealthy obsession among the country’s avid smartphone gamers. But now,
the PUBG Corporation, a subsidiary of South Korean video game company Bluehole, has
decided to step up its game to fight the backlash.

Farooqui, Javed. “Why Investors Are Making a Beeline for Indian Gaming Sector -
Exchange4media.” Indian Advertising Media & Marketing News – Exchange4media, 10
Mar. 2021

“Gaming Startups in India .” Technology & Data for Venture Capital, Corp Dev, Investment
Banks 30 June 2021

“Get Set to Play Your Favourite Games on Cloud Platform with The Gaming Project -
Hindustan Times.” Hindustan Times, 27 Feb. 2020

India, Press Trust. “Online Gaming Industry Urges Govt to Set up Self Regulatory Body for
Sector | Business Standard News.” Business News, Finance News, India News, BSE/NSE

21
News, Stock Markets News, Sensex NIFTY, Latest Breaking News Headlines, Business-
Standard, 18 Jan. 2021

Objective of the study

The objective of this article is to study how digital transformation has evolved in the gaming
industry, how the mobile and digital gaming application market has been dominating and the
challenges faced by the console manufacturers.

To study about the online gaming industry in India.

To know why there was a sudden growth in online gaming in India.

To analyse online gaming industry for academic purpose and gain knowledge regarding
growth in online gaming.

Research design

Types of research:

Exploratory research

Data collection;

Data collection is very important for any good and quality research. It is a process of
collecting, measuring, analysing accurate insights for research using validated techniques.
The quality of data collected determines the quality of research.

Scope of the study

Source of data collection

Secondary Data:

The study usually undertaken by using secondary data such as books, journals, newspapers,
magazines, website, articles which are published by various departments, research
institutions, private source.

22
Tools of data collection

The data collected through various census, social books, magazines, journals, articles, etc.,

Limitations of the study

The main difficulties faced during the project is as follows

Shortage of time factors one of the major constraints.

It is very difficult to check the accuracy of the information provided.

CHAPTER 3

SWOC ANALYSIS

23
STRENGTHS

1. Visual branding benefits from online gaming.

Online games, according to Psychology Today, have been demonstrated to boost athletes'
ability to notice changes in grey matter known as "visual signals." "They can increase vision
and help players understand the results better."

2. Online games can help you perform better.

The term "project" refers to a person's capacity to address an issue in a timely and effective
manner. Online games can boost performance, increase brain function, and prevent mental
disease in the elderly.

3. Exercise can help you improve your daily abilities.

Online sports are intended to improve eye and hearing coordination and to increase
awareness and speed.

4. Online sports help to alleviate tension and anxiety.

Online sports have been demonstrated in studies to alleviate symptoms of anxiety and
sadness. According to Scientific American, playing Tetris helps alleviate symptoms of post-
traumatic stress disorder. Writers on programmes like Geek and Sundry are describing
internet sports to assist people with social issues begin dating in their neighbourhood.

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 WEAKNESS

Online gaming has been reported to have beneficial effects, and evidence suggests that it can
be addictive.

1. Playing games online is dangerous

The Telegraph writes that researchers have found a direct link between online gaming and
gaming behaviour. This is especially true for unarmed “shooting” games.

2. Online sports reduce people's ability to focus

A study published in the book Psychology of Popular Media Culture has shown the link
between online gaming time and life. This study shows that online games stimulate emotions
in those who already have a habit.

3. Online games can be addictive

A school study found that one in 10 young athletes has an “injury”; Their athletic nature
affects family, community, school or education. Medical services have been developed
around the world to curb destructive practices.

4. Playing online can be frustrating and confusing

While it is true that online sports can help reduce anxiety and depression, other studies show
that they can cause or eliminate the condition. For example, studies in mental illness on
social, behavioral, and social media have found that fifth -grade students who play rough for
less than two hours are more likely to have problems. Inactivity.

The debate continues on both sides, and the online game ends with the reader deciding
whether it's "good" or "bad." Truth is always in the middle when money is sacrificed for
personal circumstances and needs.

OPPORTUNITIES

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The opportunities in e-commerce are numerous; these are many areas that allow investors to
invest their money in stocks like esports, streaming, training and so on. Let's talk about the
areas where we can make money from this great business.

1.E-games

Sports are very popular in the online sports industry. Esports includes a number of popular
games, including FIFA, PUBG, Dota 2, Call of Duty and more. International competitions in
various sports are held every year. In 2017, they won more than $ 24 million at the Dota 2
Championship. Malaysians also won $ 41 million in 2018 at the international tournament. Do
you still think that there are no opportunities in online sports? I think the answer to that
question now is no.

2. Stocks

Health products from top companies are available on the online sports network. If you have
the capital and are willing to take risks, why not consider buying stocks that will be valued in
the near future.
 Online Casino Shopping: Most large online businesses or companies have their own
online casinos, such as Leovegas, Ladbrokes and more.

 Sports shares: Sports license companies also own shares that can be purchased. Do
not neglect NetEnt, PlayTech, Nanobit, Primal.

 B2B casino software: Other companies offer online background for online casino.
You can also view them.

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3.Live Streaming / Youtube
Athletes show their sports in front of an audience. It is also broadcast on social media like
Youtube. Now the best players have ways on YouTube where they can post videos on their
feeds, people can subscribe and watch. They make money from the videos they post.
Revenue of approximately $ 13 million was generated in 2019 by Makipher and PewDiePie
on YouTube.

1. Professional trainers

These are professional athletes who work as coaches. Sports are also cheap, they are
professional trainers for various online sports and pay per hour for their services. Education is
a way of earning an income by participating in these sports, although they are not very
expensive.

2. Invest in ETF options

Exchange traded funds (ETFs) are index-linked securities. It also trades in equities and
reduces risk in terms of investment options. ETFs such as:
• Global X Video Games & Sports ETF
• VanEck Vectors Gaming ETF

CHALLENGES

1. Fishing

Gambling thieves also know how to trick people into using their credit card numbers, bank
passwords and other information to enter their accounts. In this case, instead of mocking
Chase Bank or its affiliates, terrorists can set up a popular online gaming platform and ask
players to change their gaming password or verify their account credentials. Often they
threaten to block it, the player's account. etc. The purpose is to capture the account and then
reset it on the black market.

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2. Trolls and attacks

Today, almost all online games have a voice or a conversation. Unfortunately, this feature is
also widely used. You may hear threats or jokes during cyberbullying. In a highly
competitive environment, it is only human nature, but the inability of some players to cross
the line is a threat to other players. And in some sports, most of an online character's life, e.g.
chat, lead to personal problems.

3. Cheats and frauds

Depending on the rules and game types, there are many tricks - some are legal, some are not.
Weak players or robots are in a better position (faster or more accurate) than modern players
handle. Some players also use vulnerabilities in the game's distribution code to get the most
out of the game.

Other tricks include playing games, using fake tape to steal monsters and fake tricks. When it
comes to gambling, it is sometimes a fraudulent year. You may miss the manufacturer or
game maker who benefits from the low cost, but this service is often a scam.

4. Identification and theft of goods

Criminals can focus on software related to gambling, sports betting, paid games or credit card
information. The latter is hard to come by, but it can steal others in various ways: scams,
password theft, scams and more. The better your position or account, the better. This is

especially true for well-published games that have a large, honest (and paid) audience around
the world.

5. There is a problem with your computer or smartphone

In addition to cheating public service, some runners may chase players away with fake
updates or game programs to help promote or promote the game. Malware can be spread
through, among other things, scams, in-game communication, face-to-face meetings or
chatlinks.

In some exceptional cases, malware can also be transmitted through the proper game
modification system. Some of these malicious programs are games based on player theft or

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game credentials, including some bank accounts; Connect to PC, Mac or smartphone with
botnet; Or delete bitcoin.

 Competitive Landscape
 The gaming industry is extremely fragmented due to the rising demand for online
games and the increasing penetration of mobile apps across various regions, resulting
in fierce competition in the market. Sony Corporation, Microsoft, Nintendo, and
others are key players in the business, and their efforts to continuously developing and
introducing next-generation game systems offer tremendous rivalry among rivals.
 • February 2021- Electronic Arts Inc. purchased Codemasters, a racing game
platform, to grow its racing games and plans to release a new racing game every year.
Codemasters' previous titles, including Formula 1, DIRT, Project CARS, and GRID,
were merged into EA's portfolio, which already includes Need for Speed, Real
Racing, and Burnout.
 • February 2021- EA Sports announced a collaboration with Criterion, DICE, and
others. DICE LA is aiming for a 2021 release date for the Battlefield game. The
project is nearing the franchise's early Alpha stage and will fully utilise next-
generation systems.
 • March 20, 2021- The business announced the release of Madden NFL 21, which
includes new features such as Face of the Franchise: Rise to Fame, Superstar X-
Factors 2.0, and unique gameplay advancements.

 Major Players
1. Sony Corporation
2. Microsoft Corporation
3. Nintendo
4. Tencent Holdings Limited
5. Electronic Arts Inc.

Recent Developments
 October 2021- Nintendo Co. announced the launch of Pokemon Brilliant Diamond,
Pokemon Shining Pearl, and Pokemon Legends: Arceus. The three video games are

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 expected to be launched by The Pokemon Company, exclusively in the Nintendo
Switch system, by 2022.
 February 2021- Google LLC (alphabet inc.) is dedicated to the cloud gaming service
and announced that it would add over 100 new games to the platform by 2021. Games
are expected to include AAA titles like Far Cry 6, FIFA 21, and Shantae: Half-Genie
Hero Ultimate Edition.
 November 2020- Microsoft launched two models of Xbox gaming consoles in order
to capture a pandemic-driven boom in consumer spending on games. The Xbox Series
X and Xbox Series S are offered at par with PS5 by Sony.

INVESTMENT IN GAMING INDUSTRY INVESTMENT DRIVERS

Rising consumption volume Factors including rising disposable income, increased internet
connectivity, smartphone penetration and affordable technologies have led to a rapid and
continuous increase in the user base of online gaming. Lockdown of 2020 served as a key
player on account of which the user base rose by 45%-60%. Fantasy sports, esports and
casual gaming increased by 24%, 12% and 15% respectively, in the year 2020. Graph 3:
Number of online gamers in India from financial year 2018 to 2020.

Product quality

With new emerging technologies such as cloud gaming, augmented and virtual reality
technology being integrated into the gaming culture, this industry has gained a lot of traction
in recent years. Pixelated screens and limited sound effects are a thing of the past, as video
games have become more lifelike than ever.Innovation has always been at the heart of the
gaming sector. New technology, new controls, and new experiences are to be expected in the near
future. Growing developer ecosystem Game development is a complex process that requires
technical skills, creativity and logical reasoning. There are various career opportunities present in this
sector, such as game designer, animator, audio engineer, game programmer etc. These career paths
are appealing to the tech savvy youth. There are currently 623 gaming startups in India, with the
number anticipated to rise in the future.

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Ban on Chinese apps

In 2020, the Ministry of Electronics and Information Technology (MEIT) banned 267 Chineseowned
apps, including numerous gaming apps, paving the path for Indian game creators to fill the
vacancy.India has begun to seize the opportunity. Various alternatives are being created for the
gaming apps which were banned. One recently launched alternative to PUBG, which was banned in
2020 and broke many hearts, is "Battlegrounds Mobile India”. The full version of Battlegrounds
Mobile India (BGMI) was released earlier this month, on July 2, 2021, and the game surpassed 34
million downloads within a week of the launch.

Transaction Based Games

Owing to the wider acceptance of digital payment systems, transaction-based games have
started gaining popularity in the recent years. This segment of the gaming industry has the
potential to earn humongous profits in the coming future. Therefore, global tech giants are
ready to invest in this sector.

Growth of online gaming industry

Because of the coronavirus outbreak, millions of Indians turned to mobile gaming platforms
to stay connected while they were sequestered at home. Unsurprisingly, India's gaming
business has seen extraordinary growth, raising the issue of whether India will become the
next massive online gaming market.

From 2016 to 2021, the country will have more than 140 digital gaming and sports
enterprises. There were just two million users in 2016, and today there are over 90 million.
According to FICCI-EY, the gaming sector was worth INR 65 billion in 2019 and is expected
to be worth INR 187 billion by 2022.
Furthermore, the Covid-19 prohibition in 2020 will alter the usage of conventional online
sports, such as MAU, DAU, average training time, and people's preferences. Transfer fees are
often used. "Between the ages of 21 and 25,

We acknowledge the huge demand from businesses and investors seeking to capitalise on the
enormous prospects provided by online casinos "Satya Ishwaran, Partner and CEO of KPMG
India, Technology, Media, and Telecom, agrees.

The online gaming sector in India expanded by an average of 21% during fiscal years 21 and
25, reaching Rs. 13 600 rupees. This figure is expected to climb to Rs. 29 thousand. Online
games generate $6,000 million in sales, accounting for 44% of total income.

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According to the poll, 42 million online sports enthusiasts accounted for 97 percent of the
total number of participants last year and aim to maintain that percentage at $25, according to
the survey.
The number of games available on the Indian network is expected to rise from 360 million in
2020 to 510 million in 2022. Furthermore, the number of game launches is steadily increasing
(around 400).

Since the end of the pandemic, the number of investment firms has climbed by 50%, as has
the average investor turnover. After being infected with the coronary heart virus, countries
extended their playing duration to 4.1 hours from 2.5 hours.

There is a lot of actual sports money here, according to information gathered by sports
associations. Around 150 million games had been downloaded as of May 2020., about 150
million games have been downloaded.
Not having good nutrition and eating habits
Have rewarding and self-affirming relationships
Engage in challenging activities
Create meaning and positive personal identity
Organize time and energy to meet personal goals
Helps in Staying focused.

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 CHAPTER 4

OUTCOMES OF STUDY
Effects of online gaming
Those who have used gaming as an unhealthy coping mechanism (where there is an over-
dependence on gaming as a way of escaping reality), like in India and elsewhere, may suffer
from mental health difficulties. For some, the pandemic's impact may lead to a continuance
of excessive gaming, with negative consequences.
Psychiatrists, psychologists, occupational therapists, and social workers, for example, must
continue to assess clients' psychosocial needs and offer the appropriate psychosocial
treatment wherever and whenever it is needed.
During this epidemic, the whole population, especially vulnerable groups, required the
greatest degree of mental health care. To help in the resolution of mental health difficulties,
early identification of the vulnerable population should begin as soon as possible.
According to the research presented below,
Stress may be efficiently managed.
Not getting enough sleep
Absence of physical activity

LEARNINGS
In order to minimise teenage addiction to online gaming, the government should implement certain
awareness initiatives and counselling.

• Participate in more outside sports such as football, cricket, badminton, and so on, rather than
being glued to an electronic gadget such as a cell phone, laptop, or tablet.

• Rather of playing indefinitely, consider measuring your gaming time and setting a limit for yourself.
It is possible to do this by selecting games intelligently or by going on a gaming detox.

• You may also incorporate yoga and meditation into your daily routine, which is an excellent
technique to relieve stress and increase attention, allowing you to reduce your level of addiction.

• Avoid gambling games, such as online casino games, that might result in monetary loss.

• Extremely evade Violent games, such as PUBG, can inspire aggressive thoughts, feelings, and
behaviour, affecting the player's mental health.

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CONCLUSION
India has proven to be a game changer. Despite these obstacles, such as a lack of
understanding and high supplier costs, the Indian gaming sector has proven to be one of the
country's largest technology based industries. Mobile games are predicted to dominate the
gaming business as a result of smartphone ubiquity and low-cost internet connectivity.
Emerging technologies such as augmented reality, virtual reality, artificial intelligence, and
cloud computing will contribute to the sector's improvement by improving performance and
user experience. The Chinese app ban has resulted in a rush of opportunities for
professional advancement in both game creation and game play. Many worldwide internet
behemoths, as well as the Indian government, recognise India's untapped gaming potential.
Investments will be undertaken in the next years, including investments in the industry will
increase twofold, with Venture capitalists, private equity, and a few key players will acquire
traction, doubling the industry's size.

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