Indian mobile gaming sector set to grow
Indian mobile gaming sector is set to grow from US$ 1.5 billion of revenue in 2020 to US$ 5 billion by 2025 according to a report published by VC firm Sequoia and management consulting company BCG. The sector initially monetised through in-game advertising. But in 2020, 80% of the $1.5 billion generated by the sector was sourced from in-app purchases and real-money game (RMG) spends. Currently, India has over 300 million gamers in India. Revenue across all gaming devices reached $1.8 billion in 2020, rising 500% from 2016.
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Investors are upbeat on gaming platforms because they mitigate the hits-driven nature of individual games. Adding to this bullishness is the fact that such platforms accounted for over 88% of all VC funding in gaming in 2020 — which was more than US$ 400 million. The study noted that though China and the US are bigger markets, Indian mobile gaming sector is growing faster at a CAGR of 38%.
“There’s also a strong correlation between sociability and spend. Close to half the gamers surveyed for this report play games to keep in touch with family and friends, and high engagement gamer archetypes tend to spend more across monetisation models. These gamers tend to gravitate towards real money gaming (RMG), which is key,” commented authors Prachi Pawar and Pushpak Kedia of Sequoia.
Source: Business Standard