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India’s gaming industry stands at a fascinating crossroads. While the global gaming market continues to surge, boasting over 1.2 billion players worldwide, India has carved its own significant niche with 500 million active gamers as of 2023, 200 million of whom are ready to invest in premium experiences. However, beneath this promising surface lies an undeniable truth: the ecosystem is incomplete. The absence of high-quality game publishers is holding back India’s developers from achieving their full potential.
In her article for The Financial Express, Pearl Agarwal, Founder and Managing Director of Eximius Ventures, delves into the critical role publishers play in the growth of the Indian gaming landscape and how bridging this gap could unlock unparalleled opportunities for developers, investors, and players alike.
Game publishers are the linchpins of the gaming industry, responsible for not only funding game development but also ensuring effective distribution and monetization. They possess the financial clout, market knowledge, and networks needed to propel games into the hands of millions. Globally, publishers like Activision Blizzard, Tencent, and Electronic Arts dominate the industry by offering developers access to resources they might otherwise lack.
In India, however, the publisher ecosystem remains nascent. Platforms such as Jio Games, MPL, and Winzo have made commendable progress, but the focus largely remains on hyper-casual and casual games. The absence of genre-specific publishers has constrained Indian developers from venturing into mid-core and premium gaming markets.
Agarwal highlights this challenge: “Developers often struggle with global game promotion due to capital requirements and a lack of internal distribution capabilities. Publishers can help overcome these hurdles by providing both funding and expertise.”
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India’s gaming revenue distribution paints a stark picture. In 2022, only 6% of Indian customers’ spending went to domestic producers, a sharp drop from 11% in 2020. In contrast, publishers from the USA and China command a whopping 41% share. This disparity underscores the need for robust domestic publishers to reclaim and expand India’s share of the pie.
Recent developments signal a promising shift. Companies like Nazara are taking bold steps by launching publishing arms, and the government has expressed its intent to support gaming and esports growth. With successful titles like Raji: An Ancient Epic showcasing the global potential of Indian IPs, the industry is poised for transformation.
The emergence of strong, India-focused publishers is not just a necessity but a catalyst for the industry’s next phase of growth.
India’s gaming industry stands on the cusp of a transformative era, but reaching its full potential requires a concerted effort from all stakeholders developers, investors, policymakers, and even academia. Building a sustainable gaming ecosystem is not just about game development or distribution; it’s about cultivating an interconnected network where talent, innovation, and resources flow seamlessly.
The government’s growing recognition of gaming as a high-potential sector is an encouraging start. With initiatives promised by the PMO to foster gaming and esports, India has the opportunity to create a regulatory framework that supports both local developers and publishers. Tax incentives for gaming startups, funding for research and development in gaming technologies, and investments in gaming education can lay the foundation for long-term growth.
Private sector involvement will also play a pivotal role. Investors must look beyond financial returns and focus on nurturing talent, supporting second-generation studios, and creating infrastructure for mid-core and premium games. The rise of platforms like Nazara’s publishing arm is evidence that private entities are beginning to step up. However, this needs to be scaled across multiple segments, ensuring a well-rounded growth trajectory for the industry.
Moreover, fostering collaboration between developers and publishers can redefine the way games are produced and distributed in India. As Pearl Agarwal notes, “Local publishers equipped with a deep understanding of customer psychology are key to implementing bold initiatives tailored to the Indian market.” These publishers have the potential to introduce innovative monetization models, curate games that resonate with Indian values and culture, and ultimately shape a distinctive identity for Indian gaming on the global stage.
Educational institutions and training programs can further enrich the talent pool, creating a steady stream of skilled developers and designers who are well-versed in cutting-edge gaming technologies. By integrating gaming-focused courses in colleges and collaborating with industry leaders, India can ensure its developers are future-ready.
The way forward is clear: a multi-faceted approach that addresses every layer of the gaming value chain. With the right blend of governmental policies, private investments, and grassroots talent development, India’s gaming industry can go beyond thriving domestically. It can set a global benchmark, becoming not just a consumer of gaming content but a creator of iconic IPs that represent the cultural and creative brilliance of the country.
This collective vision for the future doesn’t just promise economic gains- it also reaffirms India’s position as a global innovator in the digital entertainment space.
The Indian gaming industry has all the ingredients for success but lacks the critical puzzle piece of a robust publisher ecosystem. With initiatives like Nazara’s publishing arm and increased government backing, the future holds immense promise. By addressing this gap, India can create globally competitive gaming IPs, exporting its culture and creativity to the world.
This article is based on an opinion piece by Pearl Agarwal, Founder and Managing Director of Eximius Ventures, originally published in The Financial Express.
Eximius Capital Ventures Private Limited is the investment manager of the funds licensed by SEBI under AIF categories CAT I – Eximius Trust I (IN/AIF1/20-21/0855) and CAT II – Eximius Fund (IN/AIF2/24-25/1566).
Eximius Capital Ventures Private Limited is the investment manager of the funds licensed by SEBI under AIF categories CAT I – Eximius Trust I (IN/AIF1/20-21/0855) and CAT II – Eximius Fund (IN/AIF2/24-25/1566).
