Survey respondents were asked how “important in life” is leisure time. Results for India based on more than 4,000 respondents. *GDP per capita is expressed in 2011 purchasing power parity (PPP) dollars, for the year 2014.
3. Foreword.........................................................................................................4
Executive Summary.......................................................................................5
Gaming in India: An introduction................................................................7
Gaming in India has a colorful past and a bright future................................... 8
A sophisticated game development ecosystem has evolved in India........... 15
India Gaming Market Landscape...............................................................18
India gaming will be a $4Bn opportunity by 2025........................................... 19
Rapid capital deployment is leading to increased corporate
activity in gaming................................................................................................. 22
The Indian gaming market has high growth momentum............................... 25
The Role of OEMs in Gaming.......................................................................29
Gaming is a critical part of OEM product strategy........................................... 30
Midcore & hardcore gamers represent an attractive gaming
segment for OEMs............................................................................................... 33
OEM innovation has made high-end gaming accessible for masses............ 42
Gearing Up for The Next Decade of Growth in Gaming..........................45
Impact of 5G......................................................................................................... 46
Government policy is enabling growth in gaming........................................... 48
Way Forward................................................................................................51
Gaming @ OnePlus.......................................................................................53
Methodology.................................................................................................54
Glossary.........................................................................................................55
Acknowledgements.....................................................................................56
Content
Building up the e-gaming ecosystem of India and the influence of smartphones 3
4. During the Covid lockdown, Indians
have spent more time looking at
their mobile screens than ever
before. More than half users look
at their smartphones every 10
minutes, spending upwards of 4
hours every day on their screens. No
wonder India is one of the hottest
destinations globally for grabbing a
share of these trillions of minutes.
Our research suggests that about a
fifth of this time today is spent on
mobile gaming.
From Wolf 3D to PUBG, digital
gaming has come a long way
since we were kids. Games that
once required high-end gaming
rigs is now possible on budget
smartphones.
India is one of the world’s largest
and fastest growing gaming
markets.
A 500 Mn digitally native Indian
population (between the ages 15-
35) is spending online like never
before and laying the groundwork
for hypergrowth well into the next
decade. With a digital first public
policy built on top of cheaper device
and internet access, the Indian
gaming market is set to double over
the next 4 years.
With a strong ecosystem emerging
around the Indian gaming industry,
there is an urgent need for thought
leadership in this domain to
encourage growth. I hope this report
lays the foundion for more growth.
Anil Kumar
Founder & CEO
RedSeer
Foreword
India is one of the world’s
largest and fastest
growing gaming markets.
Building up the e-gaming ecosystem of India and the influence of smartphones
4
5. India has a rich culture of promoting
leisure in daily life. Sports and games
have been center stage to history &
politics, with epics such as Mahabharata
based on a game of dice. Traditional
games such as kite flying, kancha, and
teen patti are deeply ingrained in our
social fabric.
Digital Gaming in India has undergone
a paradigm shift in the last decade as
internet and smartphone access have
changed the way Indians consume the
internet. Dedicating up to 3 hours every
day on games and media consumptions,
Indians are now among the biggest
consumers of data in the world. New-age
technology and its integration into all
aspects of the smartphone experience
have catapulted mobile gaming into
hypergrowth phase.
Today, India is the largest mobile gaming
market by number of app downloads,
contributing up to 12% of the world
total. However, in revenue terms, India’s
share drops to <5%. This is driven by a
less digitally mature Indian, who is still
getting used to making payments online.
This is expected to change with the rapid
adoption of UPI and digitally natives
having increased spending power.
We estimate the Indian gaming market
at $ 1.6 billion in 2021. >90% of this market
is mobile gaming. First-generation
mobile players are experimenting with
a variety of games. As traditional Indian
games have been digitized, Indian users
are enjoying Real Money Gaming with
card games and Casual Games such as
kite flying.
Corporates and startups are spending
millions of dollars inventing games and
building stories to service the Bharat
internet user. Investment activity is
soaring as the Indian gamer spends
more time and money on feeding their
gaming habit. The last 8 months of 2021
alone have attracted more $1 billion of VC/
PE capital. Marquee investors now have
exposure to multiple gaming startups
even as funds dedicated to gaming have
emerged. India is now an increasingly
attractive destination for international
capital with global studios such as
Rockstar Games setting up India focused
shops.
A rich ecosystem has developed around
gaming as developers, publishers, and
distributors collaborate to find new
formulas for success. Professional eSports
is growing at a tremendous pace with
Executive Summary
As gaming attracts more FDI and a growth of the ecosystem will
create millions of direct and indirect employment opportunities.
Building up the e-gaming ecosystem of India and the influence of smartphones 5
6. tournaments and streams generating
crores of rupees for its sponsors &
players.
In this environment of growth, hardcore
games represent a key opportunity
segment for OEMs. This is the most
engaged gamer cohort, spending 3-4X
more time and money to support their
gaming, compared to the casual gamer.
Even amateur gamers use flagship and
gaming phones for no compromise
gaming. They spend on gaming
accessories like air triggers to enhance
their performance. They are also an
important influence as digital purchase
advisors to their friends and family.
OEMs are playing an increasingly
important role in fostering access
to gaming. Despite the increase in
smartphone penetration, India is still
a value-first market with >70% of the
smartphones being budget (<Rs 20K).
Consequently, cutting edge hardware
access is limited to a minority. However,
hardware and software innovation
have enabled OEMs to be able to make
hardcore gaming accessible to budget
gamers too. Better performance is now
available at a much lower price point as
budget phones are now capable enough
to run heavy games. Gaming is deeply
entrenched into the OS experience with
specialized gaming modes.
Ecosystem players are already getting
ready for the next generation of gaming.
The imminent 5G implementation
is expected to accelerate adoption
of gaming. Low latency network will
facilitate multiplayer gaming even as
life-like immersive content will become
accessible.
Government policy at all levels is geared
towards promoting a digitally mature
community. Central policies such as
Digital India and Digital Literacy are
creating the backbone for a booming
internet economy. Digital payments
are increasingly frictionless and next
generation policies are already under
discussion. The National Education
Policy had a special call out for the
gaming industry with a vision to gamify
education.
The stage seems set for the gaming
market to double over the next 4 years.
As gaming attracts more FDI and
a growth of the ecosystem will
create millions of direct and indirect
employment opportunities. The nature
of skills required need evolve to service
jobs such as visual effects and graphics
development. While there are a few
professional degrees targeting gaming,
the industry relies on general expertise
rather than formal expertise for fulfilling
talent needs.
In this context, gaming will require
increasing regulation and oversight.
Gaming policy in India is cloudy on two
fronts: clarity on Real Money Gaming
and Data Protection. The gaming
industry stakeholders need to come
together to identify current and future
needs and offer thought leadership to
guide growth and policy.
Building up the e-gaming ecosystem of India and the influence of smartphones
6
7. 1Gaming in India:
An introduction
Building up the e-gaming ecosystem of India and the influence of smartphones 7
8. A recent study reported that Indians spend up to 3 hours on Culture, leisure, mass-media,
and sports practices.
Source: MOSPI (2020)
Exhibit 1 – Time Use Survey as a % of 24-hours at an all-India level (2019)
Gaming in India has a colorful
past and a bright future
Indians take leisure very seriously
Descriptions of leisure activities as found in the epics and accounts
of social history (Vatsayana’s Kama Sutra, Kalidasa’s Abhijnanam
Sakuntalam and Meghdootam, and Banbhatta’s Kadamvari).
18%
11%
71%
Paid Work
Unpaid Work
Leisure &
Personal Time
Building up the e-gaming ecosystem of India and the influence of smartphones
8
9. Residents of relatively poorer nations
less likely to prioritize leisure. As India’s
disposable income rises, there will
be an increased demand for leisure
Survey respondents were asked how “important in life” is leisure time. Results for India
based on more than 4,000 respondents. *GDP per capita is expressed in 2011 purchasing
power parity (PPP) dollars, for the year 2014.
Source: Livemint, World Values Survey, IMF World Economic Outlook database
Exhibit 2 - Data on perception on leisure is from World Values Survey (2010-14).
activities in the years ahead, possibly
leading to increased demand for
professionals in the field.
0
100
80
60
20k 40k 60k 80k
Per capital GDP
(PPP)*
Singapore
Germany
USA
Japan
Korea
Russia
China
Philippines
Pakistan
India
Nigeria
Brazil
% of respondents who
think leisure is
important in life
Results for India based on more
than 4,000 respondents. *GDP
per capita is expressed in 2011
purchasing power parity (PPP)
dollars, for the year 2014.
Building up the e-gaming ecosystem of India and the influence of smartphones 9
10. Like every offline experience, sports and indoor games are being disrupted by technology.
With increasing smartphone penetration and internet access, more users are playing
digital games than ever before.
Digital gaming is expected to become an important part of how
Indians spend their leisure time
Offline Games Augmenting Offline Experience Virtualization (Digital Games)
Outdoor Sports
Indoor Sports
Exhibit 3 – Disruption of technology in offline games. While technology adds value to existing ways
to manage businesses, virtualization of offline experiences is a broad trend in consumer internet,
from virtual shopping to metaverses.
• Athlete performance (e.g.,
wearables, coaching platforms)
• Stadium experience (ticketing,
analytics)
• Fan engagement (e.g., live
streaming, content)
• Complementary Tools (e.g.,
virtual scoreboards, AR/VR like
subtitles, live chatting)
• Simulation / management
games (e.g., Soccer Manager)
• Sports Games (e.g., FIFA 21)
• Arcade Games (e.g., Stickman
Cricket)
• Real Money Gaming (e.g.,
Poker, Teen Patti)
• Social board games (e.g., Ludo
King, Monopoly)
• Offline Complimentary (e.g.,
Darts Scoreboard)
Source: RedSeer analysis
Building up the e-gaming ecosystem of India and the influence of smartphones
10
11. Large console and PC games
are now being curated for
mobile platforms. Multiplayer
battleground game, PUBG which
was originally a PC game, was
extended to mobile phones in
March 2018 and as of March 2021,
the game had crossed 1 billion
downloads globally.
While PC & Console gaming is well penetrated in developed economies, Indians are first-
generation mobile gamers. Indian gaming has leap-frogged into the mobile gaming era.
The Indian market is a fast-evolving
market, keeping pace with global
trends
Exhibit 4 – Evolution of Offline & Digital Gaming in India. Increasing number of studies point towards
Generation Z or Digital Natives using games & technology across all aspects of their lives.
Source: RedSeer analysis
Non-digital games Emergence of Digital
Games
Growth of Digital
Gaming
Emergence of Free
Mobile Games
Growth of Real money
& Multiplayer games
Growth of e-sports,
social and community
gaming
Indian Gaming Sector Timeline 2016: Introduction of 4G, leading to
democratized internet access
Mobile Games
• Non-existent
• DOS-based
simple mobile
games emerge
• SNAKE
introduced on
Nokia
• Improved
hardware
allows complex
games like NFL,
Prince of Persia
on mobile
• Android &
Apple store has
unlocked the
mobile gaming
era
• Free, Casual
games are
popular
• COVID
lockdown
accelerated
adoption of
Mobile games
including RMG
& Multiplayer
games like Ludo
King
• Social &
community
gaming saw a
boost during
lockdowns
• Mobile e-sports
games are
expected to rise
in popularity
PC & Consoles
• Dedicated
for R&D and
academic
purposes
• PC Games
& dedicated
Gaming
consoles are
introduced
and get quickly
popular
• PC & console
games are
extremely
popular
• PC & Consoles are moving to niche
users with mid- & hard-core gaming
preferences
• PC e-sports
gaming is
growing.
E-sports are
introduced in
Tokyo Olympics
2020
Offline Games
• Board games,
card games and
other offline
games Primary
option for
entertainment
• Still most
prevalent as a
major source of
entertainment
• People have
started
preferring
digital games
over offline
games
• Significantly withdrawn as a daily
source of recreation
• Offline game’s
popularity is
going down
Pre-1990’s 1990-2000 2000-2010 2010-2019 2019-2020 2020 and Beyond
Kabaddi, Cricket,
Snakes & Ladders,
Ludo, Card Games
Snake(mobile),
Mario, Dave, Brian
Lara Cricket
Age of Empire, FIFA,
Counter Strike, etc.
Angry birds, Temple
Run, Candy crush
(Online)
Rummy, 3 Patti,
Ludo King
Fortnite, DOTA,
Amongst US
Building up the e-gaming ecosystem of India and the influence of smartphones 11
12. Source: SensorTower
India represents >12% of the mobile game downloads across the world.
Mobile gaming in India is the largest
in the world
Exhibit 5 - Market share for top countries by mobile game downloads, App Store and Google Play.
While 77 percent of mobile game revenue in 2020 was concentrated among the five largest markets,
the top five countries by downloads combined for only 32 percent of the installs. This demonstrates
how getting users to spend in mobile games remains more challenging than new user adoption in
most markets.
Gamers & publishers are
finding alternative ways to
generate revenue through
live streaming & e-Sports.
Popular Indian streamers
such as Dynamo Gaming
and Mortal have millions of
followers.
India U.S. Brazil Indonesia Russia Other
0% 25% 50% 75% 100%
68%
4%
4%
4%
71%
70%
3%
3%
5%
5%
8%
8%
9%
9%
4% 70%
3%
6%
9%
8%
4%
6%
7%
12%
2019
2018
2017
2020
Building up the e-gaming ecosystem of India and the influence of smartphones
12
13. Today mobile gaming
represents the lion’s
share of the digital
gaming revenues in
India.
Source: RedSeer IP
Online real money games have gained
immense popularity: The growth
in online RMG is attributable to the
robust payments infrastructure which has
made spending online easy for the Indian
gamer.
Mobile gaming is center stage to
the Indian gaming story
Exhibit 6 – Share of Mobile in India Gaming (2021). Console gaming remains popular among a niche
of hardcore gamers. It is common for gamers to own more than one gaming device.
93%
4% 3%
Share of Mobile in India Gaming (2021)
Mobile
PC/Console
eSports
India Gaming
in 2021
USD 1.8 Bn
Building up the e-gaming ecosystem of India and the influence of smartphones 13
14. The recent spurt of internet growth has
been driven by rural India (13% rural vs
4% urban growth in digital penetration).
This new demographic prefers
vernacular content and has limited
exposure to western media & culture.
We estimate that the monetizable Indian vernacular userbase will cross 400 Mn (by 2023).
Already Hindi stream of e-sports tournaments is quite popular. One PUBG tournament’s
Hindi stream peaked at 449K viewers, highest ever in India (PMWL 2020)
Indian developers are now creating
digital versions of the games that
Indian players have enjoyed through
the centuries.
India is developing for Bharat
Games for Bharat Examples
Real Money Gaming
Regional Games
Topical Games
Childhood Games
• Teen Patti: Multiple versions of the game have acquired 100M+
downloads, often topping highest grossing charts on app stores.
• Dream 11/ MPL: Fantasy Sports that coincide with major events in
the Indian Sports calendar, also offers an international flavor
• Jhandi Munda: A street game played in Northeastern India has a
mobile version on Google Play Store that has 1M+ downloads as
of August 2021.
• Jallikattu. A multiplayer version of the Tamil traditional race
launched in 2018.
• Corona Fighters. A government sponsored game focused on
helping people learn Covid appropriate behavior.
• Kaun Banega Pradhan Mantri: Launched to coincide with the 2019
general elections in India, it features politicians collecting votes
on the streets.
• Ludo/Snakes & Ladders: Digital version of board games gained
popularity during lockdown with millions of simultaneous players
• Marbles (Kancha): A popular game in rural North India played
with marbles. Many variants available on online stores (e.g.,
Kanche and Motu Patlu Kanche Game both have 1M+ downloads
on Google Play Store)
• Kite Flying: Kite flying is an integral part of Indian culture during
festivals (such as Independence Day and Makar Sakaranti).
Variants such as Kite flying game by Maiworm Digital Strategy has
50M+ downloads on Google Play Store as of August 2021.
Exhibit 7 – Non-exhaustive list of games being developed for Indian audiences. Developers are
innovating on themes & content. Indian history/mythology-based themes are gaining traction.
Source: SensorTower
Building up the e-gaming ecosystem of India and the influence of smartphones
14
15. Source: SensorTower
A strong development & publishing ecosystem has emerged to
serve Indian needs
The Indian digital gaming ecosystem
has evolved to cover multiple
platforms and stakeholders.
OEMs and network operators are
fundamental enablers of gaming.
Advertisement partners, app platforms
and payment partners grease
the levers of user acquisition and
monetization.
Exhibit 8 – Key ecosystem players across the gaming value chain. Corporate activity is taking place
across the India with major players backing the gaming ecosystem.
Developer
Users
App Market /
Platforms
Payment
Partners
Advertisement
Partners
Game
Dev
Hosting
Rights
& Access
Ad rights &
User Info
Target
Marketing
Game
Access &
Usage
Payment
Gateway
$ Flow
Product/Service
Develop & Produce Distribute & Monetize Consume
A sophisticated game
development ecosystem has
evolved in India
Building up the e-gaming ecosystem of India and the influence of smartphones 15
16. Ecosystem Major Players
Developers
Payment Gateways
Publishers
Social Media
Ad Partners
OEMs
App Stores
Network Operator
Moonfrog Labs, Octro Games, Epic Games, Play Simple Games
PayUMoney, Paytm, Google Pay, PhonePe
Nazara Technology, 99Games, Games2Win, Gameberry Labs
Twitch, YouTube Gaming
Google AdMob, InMobi, VServ, tyro
OnePlus, Samsung, Apple, Vivo, Realme, MI, Xiaomi
Google Play Store, Apple App Store, Microsoft Xbox Live, Line, PK Gamers
Vodafone Idea (V!), Airtel, Jio, BSNL
Exhibit 9 – Key players in the Indian gaming ecosystem. Newer modes of engagement and
interaction like multiverses, autogenerated worlds, AR/ VR, edge computing, and AI/ML are going to
disrupt the way games are played. Game budgets are getting bigger with multi-million dollarmillion-
dollar collaborations between media & game publishers.
Enablers
Source: RedSeer analysis
Building up the e-gaming ecosystem of India and the influence of smartphones
16
17. Source: RedSeer analysis
Besides 275 game development
companies and over 15,000 game
developers, there are also 5,468 Indian
game publishers present on Google
Play Store offering 19,518 games across
As per job search website Indeed,
searches and posting for the gaming
industry grew by 13-15% between 2020
& 2021. The number of job postings was
double in comparison to job searches
pointing towards a high appetite in the
gaming industry.
categories. There are about 40,000 direct
jobs in gaming. The next 4 years are expect
to generate an additional 50,000 jobs in
direct opportunities.
Recognizing this demand for gaming related
careers, higher education institutions have
launched formal degrees in gaming. Some
of the recognized degrees include B. Tech in
Computer Science and Game Development.
MSc in Multimedia and Animation, etc.
India has shown a steep rise in the number of game
developers required
Exhibit 10 – Number of employees (thousands) in Indian gaming industry. The developed IT industry
provides a ready talent pool for both domestic and international businesses operating in India.
17
25
38
90
2013 2017 2021 2025F
10%
CAGR
25%
CAGR
Building up the e-gaming ecosystem of India and the influence of smartphones 17
19. Today mobile gaming
represents the lion’s
share of the digital
gaming revenues in
India.
Source: RedSeer IP
Exhibit 11 – Growth in internet subscribers in India (in millions of users). There have been a number of
seminal events in the last decade that have led to spikes in digital access.
368
560
800
600
0
0
0
,
1
0
0
4
0
0
2
CY17
CY11
CY05 CY07
CY06 CY08
80
CY09 CY10 CY12 CY13 CY16
CY14 CY15
~900
CY18 CY19
~650-680
CY20
~700-750
CY21 CY25
Internet enabled 2G
phones
Low cost 3G enabled
Smartphones
Affordable4G LTE
Desktop Internet
COVID Lockdown-led
boost
Key Drivers
of Adoption
Mobile Internet
Users (Mn)
XX
Mobile Internet Users(Mn)
India’s internet adoption reached 580 Mn at a
run rate of 73 Mn users per year in the last 3
years - ~9x of 8 Mn users added per year from
2000 to 2009
159 303 442 430 720-740 820-850
515 629
India’s internet users grew ~15%
during the past one year; with a
strong growth from rural areas
India is going to be home to ~1Bn users over the next 10 years
The India internet story has been
nothing short of amazing over the
last decade. Fueled by a combination
of providence, strong policy, and a
massive appetite for data, we project
that by 2025 >95% of India will be
accessing the internet in one way or
another.
India gaming
will be a $4Bn
opportunity by
2025
Building up the e-gaming ecosystem of India and the influence of smartphones 19
20. Source: RedSeer IP
2 out of 3 internet users will be gaming by 2025
Exhibit 12 – Change in India internet funnel (in millions of users). There were 250 Mn gamers in India
in 2018 which grew to ~430 Mn in the first half of 2021. This makes India the second largest base of
online gamers in the world after China.
975
900
850
650
147
78
675
622
500
400
80
60
Access to Internet
Active Internet Users
Smartphone Users
Digital Gamers
Paid Gamers
PC & Console Gamers
CY 25F
CY20 CAGR (‘20-’25)
8%
8%
12%
13%
5%
13%
Total population with
access to internet
Used internet in last 1 month
Own Smartphone
Users who play at least one
game online
Users who play games on the
PC or Gaming Consoles
Users who have paid for a
digital game or In-app purchases
The Indian gaming market has seen a huge growth in the last few years with an increase
in number of gamers and as well as user engagement levels.
In parallel, women have been bucking the male gamer
archetype. Separate reports by Google and InMobi
suggest that >40% of the gamers are women who are
spending a significant amount of time playing games.
Building up the e-gaming ecosystem of India and the influence of smartphones
20
21. Source: RedSeer analysis
The Indian gaming market is set to double over the next 4 years
Exhibit 13 – Growth in India gaming market (2019 to 2025 forecast). India remains among the fastest
growing gaming markets in the world.
$ 0.8 Bn
2019 2020 2021 2025F
$ 1.0 Bn
$ 1.8 Bn
$ 3.9 Bn
CAGR
20%
CAGR
50%
The large and fast-growing userbase is increasingly spending online too. With industry &
policy push currently favorable, the ecosystem is set for growth in the next decade.
Building up the e-gaming ecosystem of India and the influence of smartphones 21
22. Source: RedSeer analysis
Exhibit 14 – Investments in Indian digital gaming (in millions of USD).
Rapid capital deployment is leading to increased corporate activity
in gaming
VC/PE Funds have recognized the large gaming opportunity in India, as investments have
grown >5X in the past4 years
The Indian gaming sector has attracted nearly USD 1 Bn in investment in the last 6
months. The number of Indian gaming companies has grown from 25 in 2010 to >400 in
2021.
34 16
197
144 165
371
803
2021
2019 2020
+456%
25-50 275 400+
# of
gaming
companies
Sudden Surge
Passive Phase
2018
2017
2016
2015
Building up the e-gaming ecosystem of India and the influence of smartphones
22
23. Source: RedSeer analysis, desk research
Exhibit 15 – Non-exhaustive list of M&A activity in India gaming in 2021. This is more than double the
activity in the preceding years.
Indian companies are deploying the capital to gain scale through
mergers & acquisitions
The first 8-months in 2021 alone have seen 7 deals of note that will allow Indian
companies to gain scale & expand abroad.
Modern Times Group
i3 Interactive
Stillfront Group
Mobile Premier League
Flutter Entertainment
India Poker News
Acquired by
510 90 66
8 NA NA
Deal Price
(USD Mn)
• To create a wider range of information on key events, developments, and
strategies in poker.
• To grow in markets of Europe, N.America & Australia
• Establish a strong platform to expand organically into the fast-growing
Indian subcontinent.
• To enter the Indian market ahead of its competitors.
• To create, a premium ecosystem for players to maximize their enjoyment
across a variety of online skill-based games.
• Accelerate bringing to market key global tournament IPs and allow it to
develop a full suite of eSports and broadcasting capabilities.
Expansion
Strategy
Organization
Name
Livepools
PlaySimple Games
GamingMonk
Moonfrog Labs
Pokershots
Junglee Rummy
Building up the e-gaming ecosystem of India and the influence of smartphones 23
24. Source: RedSeer analysis, desk research
The next decade seems seminal for investments in the Indian
gaming market
Foreign companies are actively looking at India as both, a market and development
center.
Exhibit 16 – Drivers of investment in India gaming. The platform is set for deals to get bigger and
more frequent.
Expansion Strategy
Theme
• Lumikai is a VC exclusively focusing on the India gaming &
interactive media market
• Global gaming funds such as Play Ventures are increasing
their India exposure with deals such as Mobile Premier
League
Dedicated
gaming
focused VC/
PE funds
• French video game company Ubisoft has two development
studios in India
• American video game publisher Rockstar Games acquired
Dhruva Interactive, an Indian video game development
company headquartered in Bengaluru in 2019. It was later
merged into Rockstar India Studio and has around 500
employees in India
• Vietnam-based game developer StomStudio has partnered
with Indian game distributor and publisher, Gamesbond, to
develop casual arcade games
International
giants
setting up
shop in India
• Brands such as OnePlus, Disney, Flipkart, and Mountain Dew
have thrown their weight behind eSports events
• Airtel India in partnership with Nodwin Gaming kicked off
Airtel India Esports tour to furthur grow Esports in India
• Jio & Qualcomm are collaborating to deliver a superior
gaming experiences through multiple contests on the
JioGames Esports platform
OEMs and
corporates
are betting
big on
gaming
Building up the e-gaming ecosystem of India and the influence of smartphones
24
25. Source: RedSeer analysis, TRAI, desk research
Exhibit 17 – Smartphone Penetration in India (# of Smartphones, % of Population, CY15-20). The
next wave of smartphone adoption is happening in rural India which will change the way content is
consumed across the internet.
The Indian gaming market has high growth momentum
Increase in smartphone penetration
Smartphone penetration in India has increased significantly driven by affordable, high-
quality smartphones. Today ~38% population of India owns a smartphone and can access
digital/mobile games from the app stores
2016 2017 2019 2020
Average selling price of smart phones and
increased adoption in rural and vernacular users
has boosted the smartphone penetration
21%
300 Mn
30%
380 Mn
35%
480 Mn
38%
500 Mn
40%
60%
~600 Mn
~860 Mn
2021 F 2025 F
CAGR ~ 40%
Longer replacement cycles result in higher retained/ownership period of the
phone. Better quality, affordable phones have increased the average period of
ownership from 12-16 months to 16-20 months in India between 2015 & 2020.
Building up the e-gaming ecosystem of India and the influence of smartphones 25
26. Source: RedSeer analysis, TRAI, desk research
Cheap, high-speed internet is leading to high data consumption
Data consumption has been driven by reduction in data tariff over years. Post 2016, Indian
market has consistently had the lowest data-tariffs in the world, which enabled a 400%
rise in data consumption since then.
Exhibit 18 – Average data consumtion and tarriff (USD per GP, GB per month, 2015 to 2025 at current
dollar prices). Time spent active consuming media, surfing or playing games (Active screen time).
Indians have the cheapest access to internet across the world.
Change in User Behaviour
(Lockdown-ledrestrictions)
Rural Penetration
0.4 1.1
4.1
7.6
9.8
11.8
13.5
25.0
$3.24
$0.28
$0.17 $0.16 $0.16 $0.10 0.1
2020
9
1
0
2
5
1
0
2 2016
$1.08
1
2
0
2
8
1
0
2
7
1
0
2 2025 F
$
1.4
$ 8
$
0.6
Cheapest Data Tariff
in the World
USD/GB GB/month
3 H 3 H 4 H
Boost in Access
(Jio-launch)
3.5 H 5 H 6 H 7 H 8 -10 H
Daily Time spent
on Internet^
Rapid Growth in Active consumption of
internet, as seen by time spent
This in turn has led to an explosion in consumption of games and other media.
Currently, the data consumption is around 13.5 GB/month. The average monthly
consumption is expected to nearly double by 2025, as rural penetration grows.
Building up the e-gaming ecosystem of India and the influence of smartphones
26
27. Source: RedSeer analysis
Source: RedSeer analysis
Indian gamers are increasingly likely to transact online
Digital transactions in India have grown a/t a tremendous 55% CAGR in last 5 year (by
volume of transactions). RBI Governor claimed 97% daily, small ticket transactions
were made digitally in Jan 2020.
Several portals observed strong organic growth on users especially during the
lockdown months of 2020. At the same time, a significant number of gamers also
started paying online.
Exhibit 19 – Growth in digital transactions in India (millions of transcations per year). Strong
infrastructure and policy have propelled online transcations. In fact the India digital payments model
is being replciated by multiple countries.
Exhibit 20 – New users and first time payers on mobile games. Covid boosted the popularity of mobile
gaming. Facilitated by a frictionless payments experience, gamers have become comfortable with
spending money online.
5,930
9,690
14,590
23,430
34,340
53,227
2016 2017 2018 2019 2021E
2020
+55%
+ 200% YoY
New Users witnessed by
Paytm First Games during
2020
+ 30%
% higher traffic observed on
WinZo Games
+ 75,000 + 40 %
First Time payers during 2020
New Users witnessed by
Paytm First Games during
2020
Building up the e-gaming ecosystem of India and the influence of smartphones 27
28. Source: SensorTower
The Covid-19 pandemic boosted gaming downloads
Government-imposed lockdown accelerated organic growth of digital games as mobile
app downloads great by 50% and user engagement went up by 20%.
Exhibit 21 - Top countries by mobile game downloads, App Store and Google Play. As smartphone
penetration in India increased in recent years, it has become the largest market for mobile game
downloads.
Q1 2017
Q2 2017
Q3 2017
Q4 2017
Q1 2018
Q2 2018
Q3 2018
Q4 2018
Q1 2019
Q2 2019
Q3 2019
Q4 2019
Q1 2020
Q2 2020
Q3 2020
Q4 2020
Q1 2021
0
1B
2B
India +28% Y/Y
U.S. -7% Y/Y
Brazil +10% Y/Y
Indonesia +6% Y/Y
Russia +16% Y/Y
India U.S. Brazil Indonesia Russia
3B
Building up the e-gaming ecosystem of India and the influence of smartphones
28
29. 3The Role of OEMs
in Gaming
Building up the e-gaming ecosystem of India and the influence of smartphones 29
30. Source: RedSeer analysis, desk research
Gaming is a critical part of OEM product strategy
OEMs showcase features that keep gaming and media at the center
Every year’s flagships release with the latest and best in hardware performance. The pace
of change is still fast with 3nm chips already under prototyping.
Exhibit 22 - Top features upgraded in smartphone launches every year. Annual launches are
calendarized nowadays with hardware & OS upgrades announced in events live streamed by
millions of viewers.
Impact Examples
Features
• Dedicated GPU on SOC allows for
console like gaming and heavy-duty
media processing
• Image and video processing are
increasingly done on mobile
• OEMs are now developing their
own SOCs to work with their
ecosystem
• Current generation processors
are 5nm with limited global
manufacturing capacities
• A few OEMs are working
towards with their own SOCs
Next Gen
CPUs &
GPUs
• Smartphones use cooling
technologies like Water-Carbon
cooling and Liquid cooling to
regulate internal temperature
during gaming
• Only a few gaming phones
offer cooling features such
as OnePlus 9R 5G with VC
cooling system
Smartphone
Cooling
Technology
• Higher refresh rates of >60Hz
make moving content look and feel
smoother and snappier
• The higher refresh rates can be
beneficial on games where every
frame counts while making split-
second decisions
• Higher resolution in smartphones
helps the games look good
• Flagship phones are emulating
the >90 Hz as a standard
feature now
• Latest gen phones are already
touching 144 Hz
Screen
– Size,
Resolution &
Refresh rate
• Next generation low latency
networks such as connections as
5G, Wi-Fi 6 and Bluetooth 5.2 will
enable lag free gaming
• Only flagship phones tend
to sport next generation
connectivity options due to
limited network readiness
Connectivity
Building up the e-gaming ecosystem of India and the influence of smartphones
30
31. Source: RedSeer analysis, desk research
Gaming is deeply integrated into mobile OS ecosystems
OEMs develop add their own flavor of Android over stock versions. Every release has
features dedicated to enhancing the gaming features. A few features such as an
immersive gaming mode are pretty much standard across OEMs.
Exhibit 23 – Non-exhaustive list of OEM-added gaming features integrated within the OS. After
market mods are available that enable developer gaming features such as hardware overclocking.
OS Gaming Features at OS
OEM
iOS
• Apple Arcade
• Unified on-screen gamepad
Apple
Oxygen OS
• OnePlus Games
• Pro Gaming Mode
OnePlus
Color OS
• Game Space
• Gaming Assistant
• Hyper Boost
Oppo
One UI
• Game Launcher & Instant Games
• Gaming Booster Mode
• Discord Integration
• Game Plugins
Samsung
MIUI
• Gaming on Floating Windows
• Game Turbo
Xiaomi
Building up the e-gaming ecosystem of India and the influence of smartphones 31
32. Source: RedSeer analysis, desk research
OEMs have responded to the growing demand for gaming with
exclusive launches
OEMs are launching gaming specific phones, either with next gen hardware or in
collaboration with other brands.
Exhibit 24 – Non-exhaustive list of exclusive gaming phones in recent years. In addition, OEMs often
release co-branded limited luxury editions to cater to the enthusiasts.
Razer Phone 2 (2018)
OnePlus 9R 5G (2021)
Poco F3 GT (2021)
Asus ROG Phone 5 (2021)
Launched with a 120Hz screen and
Dolby speakers
Featured 6.55-inch AMOLED 120Hz
with 2400 x 1080 pixels display with
Snapdragon 870 5G chipset
Affordable gaming device with
gaming specific features such as
Maglev triggers and RGB lighting
Flagship gaming device with
features such as air triggers and
high battery capacity
Building up the e-gaming ecosystem of India and the influence of smartphones
32
33. Source: RedSeer analysis, desk research
Midcore & hardcore gamers represent an attractive gaming
segment for OEMs
The Indian gamer of today has access to complex games across multiple genres
The Indian gaming landscape has kept up with global trends as top-10 gaming
leaderboards contain both global and regional leaders.
Exhibit 25 – Genres of digital games. There are multiple sub-genres catering to niche tastes. Some
crafting games such as Roblox are so flexible that they allow users to develop their own games
within the virtual world.
Digital Games
Hyper Casual Mid Core Hard Core
Real-Money
(RMG)
Casual
Competitive
Gaming
Spectatorship
PC & Console
Games
FlappyBird, Crowd
City, HelixJump etc.
FortNite,
PUBG,FreeFire, FIFA,
DOTA
Online Poker, Rummy,
TeenPatti, & Fantasy
sports
LudoKing,
CandyCrush,
AngryBirds Digital games’ tournament& competitions
Mobile-based
games e-Sports
• Simple games
usually with a
resource
management
theme
• Simple,
repetitive action
games
• Ultra-simple,
Low graphic
games
• Complex,
multi-faceted,
detailed games
• Skill or Luck
based games
with real money
• Viewing
tournaments and
professional
gamers
• Popular
multiplayer
games (Hardcore)
played
professionally
Clash Of Clans,
Last Shelter, Lord's
mobile, Asphalt etc.
Building up the e-gaming ecosystem of India and the influence of smartphones 33
34. Source: RedSeer analysis, desk research
Each genre of games requires a differentiated business strategy,
without a guaranteed formula for success
While PC & console are still the domain of the most resource demanding games, mobile
gaming is becoming increasingly sophisticated.
Exhibit 26 – Comparison of player characteristics and development effort across genres of digital
games. The different genres of games require a varying combination of development effort & digital
marketing.
Hyper-Casual Casual Mid-Core Hard Core
Development Efforts Very Low Low High Very High
Hardware
Requirements
Basic Basic Mid-range High-end
Shelf Life Low Low High High
User Commitment Low Moderate High High
User Acquisition Easy but erratic
Dedicated effort required to acquire &
retain users
Relative per User
Revenue
Very Low Low Medium Medium
Monetization Advertisement & In-app purchases In-app upgrades microtransactions
Building up the e-gaming ecosystem of India and the influence of smartphones
34
35. While Casual Games are popular, Hardcore Games generate the
most revenue
Casual games are the most popular genre in India with their ‘Free to Play’ design. With
low engagement and high churn, monetization has been difficult for Casual Games.
Google Play Store data suggests that Hardcore Games are generate more revenue than
their more popular Casual Game peers.
Top 10 Games in India by
Downloads
Top 10 Games in India by
Revenue Grossed
Ludo King (Launched:
2016)
Free Fire (Launched:
2017)
Carrom Pool
(Launched: 2019)
Clash of Clans
(Launched: 2012)
Free Fire (Launched:
2017)
Coin Master
(Launched: 2015)
Bubble Shooter
(Launched: 2013)
Teen Patti Gold
(Launched: 2014)
PUBG Mobile
(Launched: 2017)
PUBG Mobile
(Launched: 2017)
Subway Surfers
(Launched: 2012)
Call of Duty Mobile
(Launched: 2019)
Candy Crush Saga
(Launched: 2012)
Teen Patti (Launched:
2013)
Hunter Assassin
(Launched: 2019)
Lords Mobile
(Launched: 2016)
Call break Multiplayer
(Launched: 2018)
Candy Crush Saga
(Launched: 2012)
Temple Run 2
(Launched: 2013)
Gardenscapes - New
Acres (Launched:
2016)
Building up the e-gaming ecosystem of India and the influence of smartphones 35
36. Source: Google Play Store India (September 2021), RedSeer analysis
Exhibit 27 – Comparison of top downloaded games and top grossing games. Hardcore and mid-core
games manage to monetize various aspects of their game and the more engaged players tend to be
more willing to pay for upgrades via in-game micro transactions.
Hypercasual /
Casual
Hardcore /
Mid-core
Real Money
games
Building up the e-gaming ecosystem of India and the influence of smartphones
36
37. Source: RedSeer analysis
Exhibit 28 – Projected growth in India eSports from 2021 to 2025 (in Millions of USD). Esports is an
upcoming segment of gaming in India which revolves around professional gamers competing and
streaming popular events. Channels such as Discord, Twitch and YouTube are becoming a reliable
source of income for professional gamers and streamers.
Hardcore gamers not only play games, but also spend time
viewing eSports - already a $150Mn market
Hardcore gamers build viewership for e-sports. Viewers comprise popular streamers’
fanbase and amateur gamers. A number of players watch professional streams in part to
improve their own gaming skills.
36
157
2021 2025
Esports Market Size (USD Mn)
45%
Building up the e-gaming ecosystem of India and the influence of smartphones 37
38. Source: RedSeer analysis
Exhibit 30 – Proportion of hardcore & mid-core gamers in India as of 2021. Hardcore gamers also
tend to play a lot of casual games in parallel.
Hardcore & midcore gamers represent up to 40% of the gaming
userbase
Hardcore gamers tend to log on daily to play games on their phones.
75%
25%
Real Money Games
Arcade Games
Casual Mobile Gamers in India
Total Mobile Gamers in India
~ 430 Mn
30%
15%
55%
Hypercasual/Casual
Mid-Core
Hard-Core
~320 Mn
(96 Mn)
(48 Mn)
(176 Mn)
(323 Mn)
(107 Mn)
Source: RedSeer analysis
Exhibit 29 – Growth in announced and predicted prize money from eSport tournaments in India (in
Millions of USD). Some gaming tourneys that have been around for more 10 years now have prize
pools that run into crores of rupees.
eSports is a source for prestige and a chance for gamers to earn
real money
An increasing number of gamers report themselves as aspiring to build a career in
professional or semi-professional gaming. Sponsored and amateur teams compete for
eSports prizes in tournaments at levels varying from college to international. eSports will
be a medal event at the Asian Games 2022 (but not at the Olympics yet).
2018
2017 2019 2020 2025(F)
14.3
0.2 0.5 1.1
3.6
4X growth
expected
Building up the e-gaming ecosystem of India and the influence of smartphones
38
39. Source: RedSeer analysis on surveys conducted in September 2021
Hardcore gamers are highly engaged…
In a survey conducted over 500 hardcore gamers, ~70% of the respondents said they play
2-5 games in parallel.
Exhibit 31 – Gaming engagement among hardcore gamers. A user reports, “I have 10+ games
installed on my Samsung Galaxy S20. I spend my time across PUBG and casual games. Committing to
more than 2 hardcore games at a time is very demanding.”
48%
47%
5%
All of them, almost
equally
Most of them
(2-4)
(1-2)
33%
65%
3%
(5-10)
(2-5)
< 2
Source: RedSeer analysis on surveys conducted in September 2021
Hardcore gamers spend >3X the time on gaming compared to casual gamers. As we go
from Metro to Tier 2 markets, the hours spent on gaming increases
Exhibit 32 – Time spent by users on gaming by type of gamer.
Casual Games
3-4 hours per week
Hardcore Games
10-12 hours per week
Building up the e-gaming ecosystem of India and the influence of smartphones 39
40. Source: RedSeer analysis on surveys conducted in September 2021
… and spend significant money on gaming
~40% of the hardcore gamers are paying for playing these games ( up to 70% among
metro-based gamers). ~25% of gamers started paying for gamers after the onset of
pandemic.
Exhibit 33 – Money spent by hardcore gamers on gaming. Players spend money on unlocking digital
content and accelerating their game progress.
41%
59%
No
Yes
4%
39%
31%
18%
3%
5%
INR 1000+
INR 500-1000
INR 200-500
INR 100-200
INR 50-100
INR 1-50
Average =Rs. 230
40% of the gamers start microtransactions or in-app purchase within 1-2 week
of starting the game and one fourth of the gamers spend at least Rs 200 on
games each month. And as expected, metro gamers lead on spending habits.
Building up the e-gaming ecosystem of India and the influence of smartphones
40
41. Source: RedSeer analysis on surveys conducted in September 2021, desk research
… and buying high-end smartphones
Penetration of higher end phones is considerably higher amongst surveyed hardcore
games in comparison to number of units of phone sold by category.
Exhibit 34 –Comparison of smartphone ownership at pan India and among hardcore gamers. Gaming
enthusiasts buy higher end smartphones compared to the average Indian smartphone owner.
70%
38%
25%
45%
5%
7%
1%
11%
Pan India Average
Gaming
High-end (>Rs 30K)
Mid-range (Rs 15-30K)
Basic (<Rs 15K)
HardCore Gamer Average
Building up the e-gaming ecosystem of India and the influence of smartphones 41
42. Source: RedSeer analysis on surveys conducted in September 2021, desk research
Source: RedSeer analysis, desk research
Hardcore gamers are demanding next generation features from
their smartphones
Hardcore gamers tend to be an aware reader who keeps a close ear to the hardware and
gaming community. Consequently, they are also more discerning about the features they
demand from their smartphones.
OEM innovation has made high-end gaming accessible for masses
India is a value-first smartphone market
Recognizing the bottom-heavy nature of the Indian market, several games offer a LITE
version of their games which can run on lower spec phones.
Exhibit 35 –Comparison of gaming related pain points and priority features among hardcore gamers.
Features such as fast refresh screens and smartphone cooling are differentiating features. “Gaming
smartphones need to deliver on superior technical aspects rather than focus on gimmicky lights and
speakers,” as per a hardcore gamer.
Exhibit 36 –Smartphone split by price buckets. >80% of the smartphones sold in India are less Rs
20,000. Consequently, the flagship phones cater to the top of the market.
Feature
Pain Point
Importance of Features
>8 GB RAM
>128 GB Storafe
with UFS 3.0
Touch sensitive
gaming controls
Smartphone
Cooling technology
(e.g. Liquid
cooling)
> 90 Hz Screen
Refresh Rate
Cutting edge processor
0%
10%
20%
30%
40%
50%
60%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Fix Urgently
Important and painful
Communicate
Better
Important but not painful
Differentiators
Pain point, but not
important
Hygiene
Not painful, not
important
70%
25%
5% 1%
Basic Phone
Mid-range
High-end Gaming
<Rs 20K
Rs 20K –Rs 30K
>Rs 30K
~500 Mn
Smartphones
in India in 2021
Building up the e-gaming ecosystem of India and the influence of smartphones
42
43. Source: RedSeer analysis, Antutu
Hardcore gamers are demanding next generation features from
their smartphones
Today’s budget smartphones are capable enough to run higher end games, making
hardcore gaming available to the masses
Smartphones have become more affordable and pack the hardware to run hardcore and
midcore games. This has opened accessibility to more immersive gaming for the masses.
Smartphones have become more affordable and pack the hardware to run hardcore and
midcore games. This has opened accessibility to more immersive gaming for the masses.
Exhibit 37 –Comparison of absolute performance and price-relative performance across from 2019
to 2021. Antutu score is an industry accepted benchmark for measuring smartphone performance
(a higher score is better). While the performance showed an upward trend and improvement in
hardware with time, the price-relative performance growth is much faster.
0
2
4
6
8
10
12
14
16
18
0
100000
200000
300000
400000
500000
600000
700000
800000
1
2
0
2
0
2
0
2
9
1
0
2
Basic Smartphones
Mid priced Smartphones
High End Smartphones
Price Relative Performance Growth
Performance Growth
Antutu
Performance
Score
Price
Relative
Performance
Score
16%
20%
Building up the e-gaming ecosystem of India and the influence of smartphones 43
44. Source: RedSeer analysis, desk research
Third-party manufacturers are blurring the lines between mobile
and console gaming
A variety of accessories exist across price points to elevate the mobile gaming experience
from casual thumb-tapping to button-mashing. Gaming accessories range from battery
packs to audiophile headphones to console controllers.
Exhibit 38 –Non-exhaustive list of gaming accessories available across online platforms to
supplement mobile gaming. Branded and unbranded gaming console equivalent items are available
across the price spectrum.
LIMTAS Pro Mobile
Gaming Trigger (₹399)
Homido V2 VR
(₹4000)
Amkette Evo Gamepad
Pro 2 (₹2,900)
GAMEVICE
(FROM ₹13,747)
Floating L1 / R1 triggers for FPS such
as PUBG and Freefire
Headset to convert any smartphone
to a functional VR experience, limited
to compatible apps and games
Affordable device for Android to
replicate a hand-held console
experience for all sorts of games
Premium device focused on iPhones &
iPad to replicate a hand-held console
experience for all sorts of games
Building up the e-gaming ecosystem of India and the influence of smartphones
44
45. 4Gearing Up for The
Next Decade of
Growth in Gaming
Building up the e-gaming ecosystem of India and the influence of smartphones 45
46. Branded and
unbranded gaming
console equivalent
items are available
across the price
spectrum.
Exhibit 39 –Non-exhaustive list of gaming accessories available across online platforms to supplement
mobile gaming. Branded and unbranded gaming console equivalent items are available across the
price spectrum.
5G is expected to transform the India gaming landscape
In the switch to 5G, the average speed
will more than double the speed of
4G, and towers will be able to support
about a million devices per square
kilometer. 5G will have a tremendous
impact on online gaming, where
milliseconds can make a difference
between living or dying, and winning
or not winning the first place.
Impact of 5G
Source: RedSeer analysis, desk research
• Esports will flourish with more gamers translating into more stream viewers.
Most professional players also stream their practice games on YouTube or Twitch
regularly and now even amateurs run their own channels with tips and tricks.
Streaming
• Faster the internet connection, lower the risk of lag, leading to a more consistent
online experience.
Latency
• Life-like digital experiences will become the norm enabled through high resolution
content. One minute of AR can consume 33 times more data than a minute of
standard definition video.
8K & VR/AR
Content
• Console developers will shift to cloud-based subscription services that provide
greater flexibility and limited upfront costs for gamers while also providing access
to regular performance upgrades over time.
Edge
Computing
and Cloud
Gaming
Building up the e-gaming ecosystem of India and the influence of smartphones
46
47. OEMs are launching 5G-ready phones
• 5G ready phones started launching in India 2020, well before 5G network readiness
was on the horizon
• As of 2021, only flagship phones are 5G ready
Telecom operators are conducting trials
• The government has allocated bandwidth to several telecom operators who are
carrying out 5G trials
• There is a push for Indian hardware and an alignment with international 5G
standards
Plans for rollout by 2022
• While auctions have been pushed by a year, industry observers hope for a 5G launch
by late 2022
Source: RedSeer analysis, desk research
The industry is getting ready for 5G roll-out
As policy and industry investments start to roll-out, stakeholders in the gaming
ecosystem are gearing up for the change.
Exhibit 40 –Non-exhaustive list of benefits of 5G.
Building up the e-gaming ecosystem of India and the influence of smartphones 47
48. Source: RedSeer analysis, desk research
Government policy is enabling growth in gaming
The Indian government has created a stack of schemes at enabling the entire digital
infrastructure
The Indian Government is probably doing the most exciting groundwork in the world to
create an ecosystem for a fertile gaming ecosystem. Several policies are expected to drive
the gaming industry.
Exhibit 41 –Non-exhaustive list of Government initiatives to help develop digital infrastructure.
Impact of these initiatives on mobile gaming industry
Policy Impact on Gaming
Digital India
Flagship program of the Government of India with a vision of transforming
India into a digitally empowered society and knowledge economy
Better governance as a driver to
incentivize citizens to come online
Digital Payments Infrastructure
Emphasis on creating mass, affordable digital payments. Private-sector
innovation in digital payments has also grown explosively, as evidenced by
Paytm, Google Pay
Frictionless digital payments
infrastructure for micro-
transactions and in-app purchases
transactions
Bharat Stack
A set of APIs that helps businesses, startups, and developers to utilize a
unique digital Infrastructure
Better infrastructure for developers
Bharat Broadband network
A special purpose vehicle to create the National Optical Fiber Network
(NOFN) in India
High speed connectivity in rural
India enabling access to a new
demographic
Make in India Initiative
Focused on facilitating the inflow of new technology and capital, while
creating millions of jobs and putting India on the global manufacturing
map
Increased employment opportunity
across the value chain leading to
higher consumption potential
Production Linked Incentive
Targeted at boosting domestic manufacturing and attracting large
investments in mobile phone manufacturing and specified electronic
components, including Assembly, Testing, Marking and Packaging (ATMP)
units
Cheaper hardware at both end-user
(device access) & enterprise levels
(infrastructure)
Digital Reach Program
Ubiquitous coverage of broad-based, affordable, high-speed internet
connectivity through a combination of fiber to the home (FTTH) and 5G
wireless technology
Fiber to the home (FTTH) and 5G
will hasten access to reliable, high-
speed internet enabling low latency
gaming
Digital Literacy
To make one person e-literate in every household in the country, two
schemes were launched viz. NDLM and DISHA, wherein a total of 53.7
lakhs individuals were trained & certified in Digital Literacy in the country
Unlocking a monetizable, digitally
literate user base among rural India
at the bottom of the user funnel
Building up the e-gaming ecosystem of India and the influence of smartphones
48
49. Source: RedSeer analysis, desk research
A few policies are geared towards giving gaming a direct boost
Invest India calls out gaming as a sector of interest. Prime Minister Narendra Modi
has spoken out in support of the national games industry, “India should tap the huge
potential in this area and lead the international digital gaming sector by developing
games that are inspired from Indian culture and folk tales.”
Exhibit 42 –Non-exhaustive list of government initiatives targeted at the India gaming industry.
These policies will support gaming industry by developing industry leaders and highly qualified
personnel through trainings and improve quality of gaming industry in India.
Policy Description
Gamification in National
Education Policy (2020)
A special call-out was created for the gaming industry for gamifying education.
Content creation for coursework, learning games & simulations, AR/VR. Policy
articulated a clear public system for ratings by users on effectiveness and quality.
National Centre of
Excellence for Animation,
Visual Effects, Gaming and
Comics (2021)
A center of excellence of national importance, setup in partnership with IIT
Bombay to create Indian leadership in Animation, Visual Effects, Gaming and
Comics. Aimed at helping companies, especially start-ups, to access global
markets & technologies and fostering better talent.
Electronic Sports Federation
of India (ESFI)
ESFI is a Non-Profit Organization which represents Esports in India and is
building esports ecosystem in India by nurturing talents and developing and
promoting all areas from establishing academy to providing the best education
in the fields of computer education and development of the creative & social
faculties
E-sports Development
Association of India (EDAI)
EDAI is working to develop esports ecosystem in India and wants to build a
framework for esports to be a multi disciplinary skill in the NEP 2020 (National
Education Policy of 2020)
Building up the e-gaming ecosystem of India and the influence of smartphones 49
50. Source: RedSeer analysis, desk research
State governments are doing their bit to promote gaming
Administration at every level has recognized the role of digital in the future and have built
on top of Union policies at various levels.
Exhibit 43 –Non-exhaustive list of state government led programs to promote gaming and ancillary
industries. These initiatives are supporting gaming by creating a future-ready talent supply from
across the country.
State Initiative Description
Telangana VFX Animation and
Gaming Association
Telangana Govt. wants to establish Telangana as a creative industry hub with the
vision to promote education and entertainment through indigenous digital content
Karnataka Animation, Visual
Effects, Gaming and Comics
(AVGC) Policy 2017-2022
Second iteration of a 5-year program by Karnataka State Government to create a
pool of world class designers, illustrators, animators, CG artists, technical directors,
and game developers
IMAGE STPI Hyderabad STPI has setup a Center of Excellence (COE) in Hyderabad to provide resources such
as incubation, mentoring, technology support, and funding for Gaming, Animation,
VFX, Computer Vision and AI start-ups
STPI SCOUT 21 COE set up by STPI (Software Technology Parks in India) to bring transformation
through disruptive technologies and aims to improve to software & hardware solu-
tions for ESDM sector
STPI Octane Inter-networked Centers of Excellence focused at promoting next generation inter-
net startups in gaming, visual effects and IOT in the Northeast, with a gaming COE in
Aizawl
State Level Hackathons State Governments are organizing hackathons to promote coding culture. Few of
the examples are:
• HT Codeathon (New Delhi Govt.)
• Code from Home Online Hackathon (Rajasthan Govt.)
STEM programs State Governments are focusing on STEM lead curriculum to improve technical skills
(coding, digital fluency) among girls in schools. Few of the programs are:
• IBM STEM for Girls (Bihar Govt. & Odisha Govt.)
• Samagra Shiksha (Gujarat Govt.)
Building up the e-gaming ecosystem of India and the influence of smartphones
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51. The gaming industry is witnessing a
paradigm shift with the penetration
of internet across all forms of media
consumption. The growth of the
gaming industry will be driven by
identifying challenges faced by various
stakeholders and projecting current
and future expected scenarios. This will
help in addressing current and potential
challenges
This section summarizes present and
future initiatives that may regulate this
industry based on the outcomes of this
study.
Regulatory Initiatives
While governments at all levels are
creating a favorable environment
for gaming, regulatory uncertainty
will change the landscape gaming
companies are currently operating under.
• Policy clarity. Sports (including online
gaming) is a state subject. There is
dichotomy at a central and state levels
on some aspects of digital gaming.
For example, regulation of Real Money
Gaming varies by state which have
differing definitions of games of skill
versus chance. While the Niti Aayog
recently published a draft policy for
discussion, Fantasy Sports navigates
tough legal waters. Similarly, there
is a lack of cohesive policy regarding
taxation of prize money at eSports
tournaments.
• Data Protection Bill. Digital games
collect a variety of personal
information – some of it avoidable.
The draft bill in its present form will
require companies to change the
way they manage user data. Games
providers may have to implement
challenging software modifications
when developing procedures in
order to ensure that players can
exercise their data protection rights
under the GDPR. Amongst others,
data controllers must be able to
provide players with information on
data processing concerning them
in case they exercise their right to
access, including an overview of all
categories of information they store
and the purposes and duration of
storage. Since players may be entitled
to erasure of their data, games
providers have to think of ways to
cut the player’s character out of the
game without impairing the other
users’ playing pleasure. Best practice
is to provide players with a remote
access to a secure system, which
would provide the data subject with
direct access to their personal data.
Localization laws will significantly
change the way Indians access
international games. Additional
constraints on how children’s data
Way Forward
Building up the e-gaming ecosystem of India and the influence of smartphones 51
52. is accessed wil affect games and
education apps alike.
Academia & Industry Initiatives
As the industry matures, ecosystem
promoters such as industry associations
are evolving. Advocacy for the gaming
sector will involve a combination of data
availability, forums for policy making and
thought leadership.
• Research and insights. User
transactions and industry players
are generating significant amounts
of data. A deeper look at the Indian
gamer will allow the sector to create
customer delight.
• Sector awareness. Events,
conferences, and media coverage to
highlight market developments and
address stakeholder concerns
• Skilling & upskilling. As the demand
for talent rises on the supply side,
academic institutions and industries
will need to adapt their pedagogy
to create a skillset oriented towards
visual FX and interactive media. While
this is partially addressed by digital
courses, there is no holistic policy
around skill development.
Building up the e-gaming ecosystem of India and the influence of smartphones
52
53. OnePlus has always strived to perfect
and deliver devices that couple future-
ready hardware with clean and optimized
software. And with India emerging as one
of the top five mobile gaming markets
in the world, gaming has been a central
tenet of innovation within OnePlus, with
product development and several brand
initiatives looking to push the limits of
mobile gaming every year.
Esports has become one of the
company’s core genres and is poised
to become better and stronger in the
coming years. With greater accessibility
and affordability of technologies such as
Augmented Reality, Virtual Reality and
cloud gaming on the horizon, OnePlus is
constantly innovating to be the flagbearer
of authentic and immersive experiences
in leading the way into a decade of strong
growth for mobile gaming in India.
In the past as well, OnePlus initiated the
‘IDEAS’ platform which was instrumental
in allowing users to submit their feedback
on OnePlus products and OxygenOS.
IDEAS 2.0 was used to crowdsource ideas
to be incorporated in our OxygenOS. FPS
counter option to Game Space that would
help measure frames per second of the
game is an example of same. As a brand
OnePlus brought industry-first features
to the gaming community such as the
120Hz Refresh, Warp Charge, Screen
Recording, as well as the Gaming Mode
and Fnatic mode, thereby facilitating a
truly immersive gaming experience for
our users and community.
OnePlus has partnered with industry
leaders (tie ups with Fnatic and Fortnite)
to achieve unique optimizations which
offer a seamless gaming experience on
OnePlus smartphones.
OnePlus wishes to support the
development of the esports industry in
the country and provide opportunities
to showcase India’s wide talent pool.
And as Indian mobile gaming sector
continues to gain momentum, OnePlus
looks forward to leveraging the rapidly
developing smartphone consumer base,
newer initiatives, and rising interest in
technology to innovate for gamers and
the industry alike.
Fueled by this intent, OnePlus has
emerged as one of the preferred gaming
phones of choice in the industry. The
goal for OnePlus is to be the gaming
smartphone of choice for e-gamers at
every level, be it professional or amateur
and pave the way forward for the
development of mobile gaming in India.
Gaming @ OnePlus
Building up the e-gaming ecosystem of India and the influence of smartphones 53
54. Methodology
We reached out to all the stakeholders to build a deep understanding of the status quo
We conducted telephonic reach outs with the mobile gamers across Metro, Tier 1 and
Tier 2 cities. The discussions were conducted in last week of August and early September.
We ensured a fair representation across city types from across the country. 40% of the
interviews were conducted in Metro while the remaining 60% were from Tier 1 and Tier 2+
cities. A 65: 35 male to female ratio was achieved through natural fallout along with ~60%
of the sample falling into 18-30 years age group.
Exhibit 44 – Sources of data during the research process.
Mobile Gamers
Game Developers &
Publishers
OEM Manufacturers
& Industry Experts
Profile
Consumers who have
played hardcore mobile
games like Free Fire ,
BGMI in last 1 month
Mid level managers
across game developers
and game publishing
companies
Current & ex-employees
of OEMs and Members
of Industry bodies like
IAMAI
Industry reports, media
articles, Government
documents etc.
Data
Collection
Method
Telephonic discussions/
Survey
Telephonic in-depth
discussions
Telephonic in-depth
discussions
NA
Sample Size 500 (surveys) 4-5 In Depth Interviews 4-5 In Depth Interviews NA
Secondary
Research
Building up the e-gaming ecosystem of India and the influence of smartphones
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55. Glossary
Keywords Definition / Terms / Acronyms
Currency conversion USD 1 = INR 70
Metro Cities
Mumbai, Delhi, Bangalore, Chennai, Hyderabad, Kolkata, Pune, and Ahmedabad (8
cities)
Tier 1 cities Non-metro cities with population more than 1 Mn (20 cities)
Tier 2+ cities Non-metro cities with population less than 1 Mn (4400+ cities),
Rural Areas Population less than 10000
Gaming Digital Gaming (including PC/Console and Mobile)
Hypercasual games
Single core mechanic, easy to pick up but difficult to master and uniformly
challenging which, encourages players to come back like Helix Jump
Casual games
Mildly engaging, simple game mechanics and rules that can be picked up quickly.
More evolved graphics and gameplay than Hyper-casual games like Angry Birds,
Candy Crush
Mid Core
Usually feature a multi-player experience and revolve around resource
management skills, unlike casual games where the goal is usually to solve a puzzle or
complete a repetitive action like Clash of Clans
Hard Core
Complex gameplan, mechanics and storyline providing a very high engagement by
gamers, usually played multiplayer like Free Fire, BGMI
RMG
Games related to casino, card or any involvement of real money or tokens against
money like Dream11, Rummy Circle
e-Sports Competitive digital gaming and live streaming of gaming tournaments & viewership
OEM Original Equipment Manufacturers
SCOUT Smart City Challenge & Outcome for Urban Tans formation
STEM Science, Technology, Engineering and Mathematics
DISHA Digital Saksharta Abhiyan or National Digital Literacy Mission (NDLM)
ESDM Electronics System Design and Manufacturing
AR/VR Augmented reality and virtual reality
IP Intellectual Property
OS Operating System
STPI Software Technology Parks of India
AVGC Animation, Visual effects, Gaming and Comics
Building up the e-gaming ecosystem of India and the influence of smartphones 55
56. Content Guidance & Industry Insights
Bhanupreet Singh Saini, Head of Public Policy, IAMAI
Shiv Kumar Shukla, IAMAI
Utsaa Roy, Manager, OnePlus
Anjini Bist, Assistant Manager, OnePlus
Report Writing
Kanishka Mohan, Associate Partner, RedSeer
Mukesh Kumar, Engagement Manager, RedSeer
Ankit Yadav, Team Lead, RedSeer
Research & Data Collection
Prashant Kumar, Sr Research Analyst, RedCore
Simran Sultana, Research Analyst, RedCore
Guru Prasad, Research Analyst, RedCore
Acknowledgements
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57. Building up the e-gaming ecosystem of India and the influence of smartphones 57