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Indian gaming market predictions fall by $1 billion, but steady growth continues

A report by Indian VC fund Lumikai has lowered its revenue projections for the Indian gaming industry, predicting a $1 billion decrease from earlier estimates by the 2028 financial year. Initially, Lumikai and marketing intelligence firm MoEngage projected that the Indian games industry would generate $8.6 billion in revenue by 2027. However, Lumikai has now revised its forecast to $7.5 billion by 2028, delayed by one year.

The report reveals that the Indian gaming industry generated $3.1 billion in revenue in the 2023 financial year, a 19% increase from the $2.6 billion in 2022. Real-money games saw a $500 million increase in revenue, indicating that the industry is still growing, albeit at a slightly slower pace than previously predicted.

Out of the 568 million gamers in India in 2023, 140 million of them spent money on games, marking a 17% increase compared to the previous year. The report also noted that the number of gamers increased by 12%, resulting in a higher proportion of paying players. More than half of all Indian internet users now play games.

Lumikai's report emphasized the importance of mobile gaming, highlighting that 96.8% of Indian gamers play on mobile platforms. The report also indicated that casual and midcore genres, with their in-app purchase revenues and in-game advertising, are critical for the country's anticipated growth.

Interestingly, the percentage of metro-based Indian gamers decreased this year, while non-metro gamers increased. Non-metro gamers now constitute 66% of the country's gaming population, compared to 57% the previous year. Approximately half of these gamers are between 18 and 30 years old, and 60% are male.

Lumikai's founding general partner, Salone Sehgal, commented on the growth of the Indian gaming market, attributing it to rapid digitization, an increase in new gamers and paying players, and a more diverse range of gaming content. Despite some slowdown in funding, the outlook for the Indian gaming industry remains positive.

This summer, Krafton, the maker of PUBG, announced a $150 million investment in the Indian gaming market, following a prior commitment of $140 million over the past three years.

Source: adapted from an article by Aaron Astle, News Editor for Pocket Gamer

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