The online gaming industry in India is worth Rs210 (US$4.92) million, according to a recently published IMRB-IAMAI report. But nearly 20 percent of this revenue (Rs40 million) goes directly to international players not based in India.

Subscription-based revenues are three times more than advertising income. In the US, advertising accounts for close to 40 percent of revenues.

• Organized cyber cafes = Rs121.7 million


• Subscription-based revenues = Rs66 million


• Advertising = Rs22.4 million

Emperor Ashoka from Indiagames

The Internet advertising industry size is Rs1.6 billion and less than 2 percent of the Indian ad market as of now. The Indian gaming portals operate on a free model and are looking at advertising revenues to sustain their first phase of growth. Charging users for monthly subscriptions or subscriptions to higher levels is still a little far.

Casual gaming still rules the online gaming market in India, driven by youths in the 17- to 25-year age group.

The number of Internet users in India is around 25 million. But majority of access happens from cybercafes, as PC penetration is low in homes. India does not have a thriving cybercafe culture unlike China. People visit cybercafes for utilitarian purposes and do not necessarily hang out for socializing online. Also, more than 90 percent of cybercafes are in the unorganized sector. The ambience and experience of surfing the Internet are not of same quality as that of organized chains having real broadband connections and gaming-ready PCs.

According to Subho Ray, president, IAMAI, there are three broad issues that could act as impediments to the progress of this segment:

• The negative perception of gaming, especially online gaming among parents


• The poor enabling infrastructure, including connectivity and hardware constraints


• Recognition of the importance of this segment in increasing the penetration of the Internet by the Government. It would be a great advantage to the gaming community in India, for example, if online gaming was to be declared "e-Sports" and all the advantages that accrue to sports currently are extended to online gaming as well.

The online gaming market in India is expected to touch US$200 million by 2010.