Gaming Industry - India Sample

Gaming Industry - India July 2009

Executive Summary SAMPLE Market Drivers & Challenges Trends Competition

Indian gaming industry is valued at INR X bn in 2008 and is expected to reach INR Y bn by 2012

Outsourced services constitute x% of the market

The market comprises of four segments - Mobile , Online , Console and PC

Mobile gaming is the largest segment with x% share in 2008

Creation of gaming zones/ Organized Cyber Café chains

Rise in Popularity of Massively Multiplayer Online Game (MMOGs)

Localization of games/content

New payment mechanisms

Major clients for Indian gaming firms include game publishers, console makers , telecom operators and gaming portals

Online segment includes online gaming portals, ABC is leading player in this segment

Console segment comprises of gaming console makers like AA, BB and CC

PC gaming segment comprises of game publishers like A, B and C

Drivers:

Increase in disposable income

Favorable Demographics

Cost competitiveness

Increasing PC penetration

Proliferation of Internet

Increasing Mobile Penetration and growth in MVAS market

Challenges:

Broadband Quality

High Piracy

Manpower Management

High Duty rates in Consoles

Handset compatibility

Revenue sharing issues in mobile gaming

Market Overview

Drivers & Challenges

Trends

Competition

PE Investments

Key Developments

India has emerged as an ideal destination for game development

Gaming Industry is at a nascent stage in India but has a great potential to grow

India has emerged as a key destination for game development

Increased penetration of mobile phones and personal computers has helped in rapid growth of Indian gaming industry

SAMPLE Mobile Gaming x% Console Gaming y% Online Gaming z% PC gaming w% x% Outsourced Services Original Content Development y% Gaming Market Overview Market Size and Growth Segments and Share Source: Outsource2India” India: Destination Next for the International Gaming Industry” ; Indiantelevision.com “BW Marketing White book” 2009-10 ; “Indian gaming industry to hit $ 300 million by 2009” May 2007; X 2008 Y 2012 x% INR bn Revenues split x% y% z% w% 2008 2012

Free game downloads dominates mobile gaming

India constitutes only x % of the global mobile gaming industry

Mobile gaming market expanded with the penetration of GPRS enabled mobile phones and reduction in GPRS access charge

Leading game developers in mobile gaming segment include Paradox Studios, Indiagames Ltd. and Mobile2Win

SAMPLE x% 1 to 3 times in a month y% At least once a week z% Almost daily x% Free downloads y% Paid downloads Overview Market Size and Growth Break-up of free vs paid downloads Source :Telegraph” Mobile operators game for new money-spinner" February 2005; Telecom India daily “Insights on Mobile Gaming in Urban India” 2009; Outsource2India” India: Destination Next for the International Gaming Industry” ; India Games.com “Dynamics of Indian Mobile Industry”; ciol.com” India, seriously playing games!” June 2005; “BW Marketing White book” 2009-10 A 2008 B 2012 x% INR bn Mobile Gaming Frequency of playing games (urban users)

Cost Competitiveness Proliferation of Internet Increasing Mobile Penetration and Growth in MVAS Market Drivers Increase in Disposable Income Favorable Demographics Increasing PC Penetration Manpower Management Broadband Quality Challenges High Piracy High Duty Rates in Consoles Gaming Devices and Titles Handset Compatibility and Revenue Sharing issues in Mobile Gaming

Trends Rise in Popularity of Massively Multiplayer Online Game (MMOGs) Localization of Content Creation of Gaming Zones/ Organized Cyber Cafe chains New Payment Mechanism

Large number of gaming software developers have emerged in India

ABC is estimated to have x % share in the Indian online gaming market

In the mobile gaming space

Amongst service providers A leads with x% share in downloads

Amongst Portals B lead with y% share

AA leads with x% share amongst all console hardware

Global gaming companies like A and B have set up offshore centers in India for game development, while AA is scouting around for a JV

Profit Margins in gaming industry

Online games: x%

Gaming Software Titles (PC and Console): y%

Console Hardware: z%

Mobile Games: v%

SAMPLE Competition Overview Source: Channelworld.in“ EA to Capture the Indian Gaming Market” September 2008 ; Contentsutra “Zapak Claims 70-75 Percent Marketshare” April 2008 ; India games.com “Dynamics of Indian Mobile Gaming Industry” 2007; Telecom India daily “Insights on Mobile Gaming in Urban India” 2009 ; “Sony to Offer new PlayStation 3 to Indian Gamers “November 2007 ; Financial Express “Web cafes to drive gaming growth “ March 2007; “Gaming Comes To The Fore” April 2008 Major Players

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Online Gaming

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Mobile Gaming

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Console Gaming

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PC Gaming

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