Online Gaming refers to games that require internet access. Modern gaming systems like PCs, consoles, and mobile devices all have access to online gaming. Online gaming has greatly expanded the scope and extent of the video game culture. Online games provide entertainment for players of all ages, countries, and occupations. The gaming sector has expanded significantly in recent years. Numerous variables such as the popularity of online multiplayer games, the advent of mobile gaming and the increasing acceptance of virtual and augmented reality technology can be acknowledged for this growth. The gaming market is currently valued at USD 245.10 billion and is predicted to increase at an 8.94% annual pace between 2023 and 2028 leading to USD 376.08 billion.
Several individuals used gaming platforms to entertain themselves during the COVID-19 countrywide lockdowns. As a result, these platforms experienced an increase in web traffic by hundreds of thousands of additional users. Video gaming trends are seeing a significant increase in both players and income.
Sony Corporation, Microsoft Corporation, Apple Inc., Google LLC (Alphabet Inc.), and Bandai Namco Entertainment Inc. are the major corporations involved in the game industry.
With more than 2 billion users and more than a billion hours of video watched every day, YouTube is currently the second-largest search engine in the world after Google. Gaming YouTubers are online celebrities that film videos of themselves while they play video games in real life to show others how to play the game. Companies and brands that create games are already utilizing this chance to highlight the distinctive marketing strategies of their goods and advertise their games online through popular gamers.
Top 5 Gaming YouTubers in India:
Total Gaming – Ajay
Techno gamerz – Ujjwal Chaurasia
A_s gaming – Sahil Rana
Lokesh Gamer – Lokesh Raj
Gyan Gaming – Ankit Sujan
The gaming industry’s rise is being driven tremendously by continuous developments in technology. They are improving the way games are made and the user’s overall gaming experience. By releasing and rewriting codes for various consoles and platforms, including PlayStation, Xbox, and Windows PC and incorporating them into a standalone product offered to players through a cloud platform, game developers in emerging economies are continuously working to improve the gaming experience. To build the next generation of digital entertainment platforms, cloud gaming services focus on leveraging streaming media services, large-scale cloud-based computing capabilities, and global content delivery networks. These variables are anticipated to have a positive impact on market expansion.
The use of cloud-based services in the gaming industry is likely to boost interest in and demand for a variety of games, leading to faster market expansion during the span of the forecast period. The estimated market size accounts for consumer spending on games, including in-app purchases made while playing on mobile devices as well as games bought through tangible storage/boxed and digital formats (for consoles, PCs, and mobile devices). However, the figures do not include spending on console hardware, gaming hardware and devices, advertising revenues, or third-party commissions.
The market share belonging to the gaming industry is somewhat dominated by a few regions. The largest market share in 2022 belonged to the Asia-Pacific region. China invests the most overall but Japan spends the most per person. Some of the most popular mobile games, including Honour of Kings and Genshin Impact, are produced in both nations. The region which is home to more than 52% of all gamers worldwide, has however shown a favourable trend in its gaming population. The Chinese government’s recent crackdowns on time-limit restrictions and authorities’ decision to provide virtually no gaming licenses until the end of 2022 have added to the strain on the region’s gaming business. Only at the year’s end did the ban on imported video games lift, luring developers abroad but at a price and with restrictions.
China, Japan, and South Korea are expected to have considerable increases during the forecast period due to factors such as their inclusion in the top 10 countries for global game spending, the region’s prominence in mobile gaming and the rising number of gamers.
India has experienced the world’s highest growth in the percentage of New Paying Users (NPUs) in the gaming industry over the past two years, going from 40% in 2020 to 50% in 2021.
According to a report by EY FICCI (Federation of Indian Chambers of Commerce and Industry), the number of paying players climbed by 17% and transaction-based game revenues increased by 26% in India, from 80 million in 2020 to 95 million in 2021. The World Economic Forum (WEF) claims that mobile devices are the main force behind the growth of the gaming sector in India. The gaming industry has evolved as a result of smartphone usage. Mobile devices are where most games are played. Access to the internet and the introduction of smartphones with high speed processors and improved gaming capabilities have helped drive the company.
Electronic sports, sometimes known as “E-Sports,” are video game competitions. Esports are commonly organized multiplayer video game events between professional players, who can compete individually or in teams. E-sports first gained popularity in Asia, particularly in China and South Korea (which licensed professional players in 2000), but not as much in Japan, which has strict anti-gambling regulations that make professional gaming competitions illegal. Esports are also popular in Europe and the United States of America, where regional and international competitions are held.
The Goods and Services Tax (GST) Council has declared that wagers made in online gambling, horse racing, and casinos would henceforth be subjected to a 28% tax at full value. After the GST law is amended, the 28% GST duty on online gaming would go into effect, said finance minister Nirmala Sitharaman. She claimed that the decision to impose a 28% GST on horse racing, casinos, and internet gaming was not made with the intention of destroying the business, but rather with the “moral question” that it cannot be taxed equally with necessities. Users will now be required to pay Rs. 28 for every Rs. 100 spent on online games following the adoption of new GST regulations. Without making any distinctions based on whether the games involve talent or are based on chance, the tax on internet gaming would be enforced. The new GST regulations, according to online gaming companies, will limit their capacity to invest in new games and have an adverse effect on cash flows and company growth. The ruling was labelled as unlawful, unreasonable, and egregious by the All India Gaming Federation (AIGF), which stands for businesses like Winzo, Zupee, GamesKraft, and Nazara. AIGF CEO Roland Landers said, “The decision ignores over 60 years of settled legal jurisprudence and lumps online skill gaming with gambling activities. This decision will wipe out the entire Indian gaming industry and lead to lakhs of job losses, and the only people benefiting from this will be anti-national illegal offshore platforms.” In place of the 28 percent suggested by the Group of Ministers, online gaming companies have asked the government and the GST council to impose an 18 percent GST on their market.
The Indian gaming industry has several issues, including regulatory obstacles and a lack of investment. The government has taken its time in recognizing gambling as a genuine industry and has yet to establish a favourable regulatory atmosphere for gaming enterprises. Furthermore, a lack of funding in the sector has stifled growth and made it challenging for Indian gaming enterprises to compete on a worldwide scale. Despite these obstacles, the Indian gaming sector has a promising future. The Indian gaming sector is primed for continued expansion in the future years, thanks to a young and tech-savvy population, rising penetration of smartphones, and the rise of esports. As the sector matures, we should expect to see more new games and technology emerge from India, solidifying the country’s position as a significant participant in the worldwide gaming industry.
Conclusion
The gaming sector is a dynamic and developing industry that has risen quickly in recent decades. As a result of technological developments, increased accessibility, and the rise of esports, the industry has become a global phenomenon. The ability of the gaming industry to overcome these difficulties while continuing to innovate and provide new experiences for gamers globally will determine the industry’s future.
Written by – Harshita Jajodia
Edited by – Shamonnita Banerjee