Mobile gaming, or playing video games on smartphones or mobile devices, began as we know it In 2007 with the iPhone. Earlier, although mobile gaming existed, it was neither a proper industry nor a very interactive activity. Previously, games were nothing but a simple feature on the phone compared to the wide range of games available today.
With the iPhone and the development of the Andriod system in the following years, the mobile gaming industry grew heavily. It quickly became the multi-million dollar industry it is today. To make the best out of the trend in mobile gaming, the companies involved in making Personal Computer games and gaming consoles also started investing in mobile gaming.
What made mobile gaming the popular activity it is today is the free-of-cost download and gaming options and how easily accessible mobile games are, given that smartphones have become almost a necessity today.
Mobile gaming, being an engaging pastime, is a rage among billions of people worldwide, including countless Indians but what makes it interesting for companies is the very business model involved in the sector.
While most online games are free, they are flooded with advertisements. So it is no new experience for gamers to see, while playing, advertisements popping up for products they were searching for. This targeted marketing is one of the key ways companies generate revenue with mobile gaming.
In the context of India, the industry’s second-largest user base, China being the first, with a substantial youth population, makes it an exciting ground for mobile gaming. According to KPMG’s report “ Beyond the tipping point: a primer on online casual gaming in India”, as of 2021, the user base in India stands at 420 million.
According to the report, here is a list of online games that were at the top of the list:
In the casual games category, Tambola was a popular game in India, while Candy Crush Saga and Coin Master were famous worldwide. Similarly, Ludo King, Ludo Club, and Carrom Pool were the top board games, much like Free Fire and PUBG were well-known multiplayer. Teen Patti and Teen Patti Gold were the much-loved Casino games, and as for Esports, the renowned names were 8 Ball Pool, e-Football PES 2020, Sachin Saga, World Cricket Championship 2, and Real Cricket 18.
Although in compassion to more developed countries, in India, people not being very open to paid online gaming, the targeted advertisements generate vast sums of revenue in India every year.
For example, casual gaming alone generated around INR 60 billion in the Financial Year (FY) 2021, according to the KPMG report. Similarly, Online Fantasy Sports, Esports, and Real Money Games saw revenues worth INR 24.3, 1.7, and 49.8 billion, respectively.
The report says that even before 2021, the gaming industry was growing rapidly in India. Before COVID-19, the growth in mobile gaming was based on the rise in the number of smartphones, enhanced internet infrastructure, and a peak in good-quality games online.
What makes 2021 special, with the massive success of the 420 million gamers milestone and the significant revenue figures, is the fact that due to the lasting effect of the pandemic since 2020, people, forced to stay indoors, were engaged in playing online games.
In reference to the multiplying effect of COVID-19, the industry saw game downloads of over 1 billion from Quater 1 of 2020 to Quater 3 of the year. Taking ahead the success in 2021, the mobile gaming industry in India is on its way to being worth INR 169 billion by FY2025 in just casual gaming. The projection for Online Fantasy Sports, Esports, and Real Money Games is INR 54.3, 5.7, and 61.3 billion, respectively.
Interestingly, despite the fact that Indians are reluctant to pay for games often, it is not the case for games such as Battle Royale, Ludo King, and many Esports, which saw several paid conversions. It is thought that what made led to paid conversions, especially among the youth, is the easy-to-use payment systems embedded in the game, especially the UPI (Unified Payment Interface).
In order to reach its maximum potential, the mobile gaming industry needs to adapt to the challenges of the Indian market. Considering how fast-paced the gaming world demands its players to be in order to be considered pros, one of the major problems gamers face in India while playing online is poor internet connectivity which makes it difficult for players to enjoy games online with complex interfaces as well as download big gaming files.
Many gaming companies, to tackle the internet bandwidth-related issue, have started to develop small files for games or offline mobile games, which are equally engaging. However, hardly anything is a suitable substitute for the thrill of online gaming, especially for those with complex graphics and multi-player and competitive models.
Thankfully, what is promising with the future of mobile gaming in India is that the bandwidth across the country, including rural areas, is improving. Additionally, 5G operations are on their way into India, bringing in new possibilities for faster and enhanced gaming.
Similar to its origin story, the easy-to-access and free-to-use factors of mobile gaming will continue to attract millions to the gaming industry, fueling its growth. However, what will keep the existing pros engaged, as well as generate interest in the freshers or the otherwise uninterested, is the early integration of VR, AR, Cloud Gaming and AI-related features that is on its way.
As the audience for mobile gaming continues to expand and become more diverse due to the power of new technologies, developers will be encouraged to be increasingly creative so that they can serve the diverse needs of the growing gaming population. Further, the advances in technology in mobile gaming will shape the overall future of the larger gaming industry.
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