You may hear the name of Popular games Such as PUBG, GTAV vice City and Candy Crush.
Do you think about how games earn money?
The gaming industry is growing rapidly in India and worth 90 billion In 2019
So let’s start a detailed blog on how games earn and how big is the gaming industry?
What’s in it for me?
Gaming Industry Overview
Gaming Industry is the economic sector involved in the development, marketing and monetization of games. Gaming Industry In India is valued at 60 Billion in 2019 and is expected to reach 250 Billion in 2024.
The gaming industry is growing in India with a very high growth rate because India has the world’s largest youth population and embracing the new generation’s interest in digital sports and entertainment.
More than 60% of gamers in India are below the age of 24. Mobile Gaming is also growing very fast in India due to the affordability of smartphones. India is one of the tops of Gaming markets in the world by no. of users. PUBG Mobile is the most popular game in India. In 2020, India becomes PUBG’s market in the world and the only reason behind this is India has the largest youth population.
By 2020, gaming will become 20 times more enjoyable. Players are most active and are willing to spend about 4.5 billion on gaming platforms.
More than 60% of gamers in India are below the age of 24. Mobile Gaming is also growing very fast in India due to the affordability of smartphones. India is one of the tops of Gaming markets in the world by no. of users. PUBG Mobile is the most popular game in India. In 2020, India becomes PUBG’s market in the world and the only reason behind this is India has the largest youth population.
According to the experts till 2022, this industry will produce around $196 billion of revenue. And in India, it will reach approximately $405 million by 2022.
Gamers in India will reach up to 628 million in 2020 with over 40% of Gamers are spending more than an hour playing daily.
Why Gaming Industry Is Growing
The gaming industry is growing with 14% CAGR. Following are some reasons for the growth of the Gaming Industry in India and worldwide
- India has the world’s largest Youth Population and the games are mostly played by youth. That’s why this gaming industry is growing in India very fast.
- The world’s second-largest internet population is the second big opportunity for the gaming industry in India.
- There are big Gaming centers in India that are developing games in India such as Microsoft, Nvidia, UbiSoft, Zynga, Electronic Arts, Disney, Playdom, Sony, Digital Chocolate, etc.
- India has the creative talent, huge IT Skill and World-class infrastructure & advanced technology.
- Another reason for the growth of the gaming industry is the affordability of smartphones.
How Games Earn? (Business Model of Games)
The growth of every industry is always measured by revenue generated by it. There are a lot of ways to make revenue in the Gaming Industry, Here we will discuss some popular Business models of Games.
1. Advertising Model
The first business model is advertising which is very popular and used by most of the games. Advertising business models are not new in the digital industry and very common. In this model, games show Display ads, Interstitial ads & Incentivized ads, etc to earn money. There are various platforms available to monetize your games Such as Google Admob which is owned By Google.
Esports have made their place in India. Top Brands like Mountain Dew, Flipkart, Microsoft, Mercedes, Redbull are investing in Esports.
This industry is growing rapidly, it will grow by 16% in 2019 and its revenue will grow up to $ 3 billion in 2020.
From the customer’s perspective, most free games earn revenue from advertisements. Advertisements have 3 major parameters like Cost per impression, cost per click, Cost per install.
If you want to monetize your app or Games you can use Google Admob to monetize your game or App. There are some other monetization platforms too but mostly used google Admob. In this model games company earns revenue by the impression seen on their ads. So the first business model of games is the Advertising model.
2. Upfront Payment Model
The second business model is the Upfront Payment model in which games charge a flat fee to download this game. This model is used by many big games that are very popular.
The Biggest example of Upfront Payment is Grand Auto Theft (GTA) Vice City.
3. Subscription Model
The third business model used by Games is a subscription model in which games charge a continuously small fee. This model is used mostly by video games who used massively multiplayer online games (MMOs).
The reason for charging recurring fees is there are high server and maintenance costs of these games and they do not rely on Advertising and upfront payment to cover this cost That’s why they charge a recurring fee.
4. Free 2 Play- Next
This is another business model used by the various games. In this model, games are free to download but require dees for various upgrades.
5. Freemium Business Model
Freemium Business Model is another most popular business model used by games. In this model, games are free to download and play but there are a lot of various purchase games called microtransactions.
For example, In the Ludo game, you will earn some coins when you win or lose some coins when you lose and if you’re out of coins you can buy coins by paying someone you can pay a flat fee for ads free experience and thy also use microtransactions in their games. Thus who used 2-3 businesses model together money.
6. Hybrid Model
The another business model used by games is a hybrid model in which games used 3-3 types of business models. For Example, they used Advertising businesses in which they display ads but if you want an ad-free experience called a hybrid business model.
Top 5 Games Company
1. Sony Interactive Entertainment (SCEI)
Sony Interactive Entertainment is a Japanese-American gaming company that is a subsidiary of Sony Corporation. Sony Interactive Entertainment was founded by Sony Computer Entertainment Inc in Tokyo, Japan in November 1993. Popular games by Sony Interactive Inc are Bloodborne, Shadow of Colossus, Dreams and many more.
| Industries | Games |
| Founded Date | 1993 |
| Operating Status | Active |
| Legal Name | Sony Interactive Entertainment |
| Website | www.sie.com/ |
2. Tencent Games
Tencent Games are subsidiary Tencent holdings which are a Chinese multinational conglomerate company. Tencent launched its first game named QQ tang in 2024. Popular games by Tencent are League of Legends, PUBG Mobile and Crossfire.
