Cryptocurrencies and online gaming are a marriage of convenience and the two
fastest-growing tech sub-categories. However, in India, using cryptos for
transactions is not permitted. Online gaming is now estimated to be a $10-20 billion
industry globally. Online gaming is now rooting for a substantial contribution towards
the economy within a few years of setting foot into every second household.
However, due to constant financial disruptions, the Indian gaming industry currently
does not allow cryptocurrencies as a potential mode of payment.
What is Online Gaming?
Online gaming is simply playing video games with an internet connection. Xbox,
Nintendo, and PlayStation are all examples of online gaming consoles. Online
games are a substantial part of the media and gaming industry, with daily growing
demand. Online gaming is one of the largest markets in the world, with over 13 crore
players across more than 200 platforms.
Is India Wearing the Throne of Online Gaming?
India has gracefully moved past the crucial turn of events in online gaming and has
witnessed exponential growth since 2016 with the 4G data revolution. Gaming has
always been a part of the Indian economy. However, the pandemic led to the
monetisation of the gaming sector.
Online gaming has been one of the fastest-evolving sectors in the Indian Media and
Entertainment Industry. The successful run of online gaming has led to tremendous
interest from corporates and start-up investors, creating significant opportunities and
resulting in massive business houses venturing into the industry.
The pay-to-play concept has created a billion-dollar industry globally. As per the
latest reports, over 25 million Indians have a payment mode linked to their games.
Hence, currently, India is proudly wearing the throne of online gaming and shall
continue to do so.
“The Indian online gaming sector is now a serious business, with rising
interest from investors daily.”
Size of the online gaming market in India
The Indian online gaming industry will reportedly reach $5 billion by 2025 from $2.8
billion in 2022. From 2017 to 2020, the country’s CAGR for the gaming industry grew
to 38%, compared to China, which is 8% and the USA, which is 10%. The tab of
gamers in the country is expected to reach 500 million by 2025.
Consecutively, for the last two years, India has had the fastest-growing proportion of
New Paying Users (NPUs) globally. The NPUs rose from 40% in 2020 to 50% in
2021.
Transaction-based gaming revenues surged by 26% in India. The number of paying
players grew by 17%. As per reports, the numbers went from 80 million to 95 million
in 2021.
Factors Affecting the Indian Gaming Sector
The boom in the Indian gaming sector results from various aspects.
The first one is the pandemic, which resulted in fewer recreation options for our gen-
Z—-giving room for expanding the horizon of our digital finance infrastructure and
high-quality games.
Secondly, the daily/weekly time spent on the screen has witnessed a mind-numbing
rise. As per data, post lockdown, the weekly time spent on online gaming has
increased to 4.1 hours a day from 2.5 hours a day. The screen time has shot up
roughly 15% since March 2020.
Thirdly, almost all the other metrics, like game downloads conversion from DAUs to
paid users, in-app purchases, etc., all have a new normal and are operating at a
higher rate than pre-lockdown.
Role of Psychology and Digitization in the Boom of the Gaming
Sector
The tragic occurrences across the globe led to the rise in online gaming in India and
globally. According to the surveys, a whopping 45 per cent of Indian Smartphone
users began engaging in online gaming. Virtual interactions, digitisation of currency,
and ease in monetary transactions are among the few reasons that initiated the rise
in the gaming sector. A compulsive shift to digital transactions led to the
monetisation of video games.
Gaming also became an escape mode for people who wanted a change from typical
entertainment segments like television or print. This transition led to a total change of
dynamics in the Media and Entertainment sector. The demand for digital leisure with
peers and family drastically rose, leading to a rise in the gaming sector. Influencers
also promoted these games by showing how they engaged in their leisure time. They
explained how they were monetising their time and efforts through play.
Future of Online Gaming and Cryptocurrency
Industry insiders from the crypto and gaming sectors believe that using
cryptocurrencies in online gaming—especially in transactions-based gaming—is
revolutionary and possible. The practice perhaps already takes place by offshore
players.
While other industries are still assessing and analysing Web 3.0 and Metaverse, the
entertainment industry has been a game ahead with high-definition displays, face
identification, cutting-edge graphics, voice recognition, and techniques using
gesture control. Overall, virtual reality (VR) and augmented reality (AR) go above
and beyond to create captivating experiences in real and virtual environments. Many
cryptocurrency investors have virtual assets, and gamers can also anticipate NFT
profit prospects. NFT games can take advantage of this chance and assist in
creating new revenue sources.
However, keeping the legal issues aside, the Indian crypto ecosystem faces a
practical problem that baffles the large-scale use in online gaming or any other
payment. Most people in India use crypto tokens for trading, like equity and not for
payment. While stablecoins are less volatile than popular coins like Bitcoin and
Ethereum, they still need to be adopted in India. Additionally, Bitcoin is slowly being
adopted for payments globally. Many companies in the West accept stablecoins for
gaming and other payments.
Bottom Line
As India strikes to hit the peak of its maturity curve concerning online gaming,
corporations and governments will develop measures and policies to promote the
same. Very soon gaming sector will emerge as one of the most critical factors driving
the Indian Economy. The gaming industry encircles all facets of society, irrespective
of gender, skill, or location. Games are gradually beginning to represent this
increased diversity and acceptance. India, China, and Japan are among the nations
with the most significant contributions to the global gaming sector.