The most interesting aspect of the IT industry today is not just whether TCS at 44 % revenue growth this quarter and a market capitalisation higher than the next three IT companies put together can be caught by any of its competitors in the immediate future, intriguing though that question may be! The real story lies in the multiple adjacent industries that are all emerging from under the shadow of IT services, sprouting wings and flying to find their own place in the sun!
Inaugurating the recent Game Developer Conference in Pune recently, it was interesting to find 800 enthusiastic youngsters packing the hall and listening to experts talking about the state of the industry as well as the myriad
opportunities that await ambitious new game development companies. However a word of caution here. While the other segments that sprouted in the industry, business process management, engineering services, global captive centres and even product companies are all approaching critical mass, the game development business is still in infancy in our country and we have a long way to go to aspire to be at the level of even a China and Korea in the gaming industry. At a $300 million revenue level, the size and scale may be small today but the rapid proliferation of the internet and the capability enhancement of mobile phones at a rapid clip are both catalysts for rapid growth and increasing attention share for this exiting segment of India’s IT industry.
An industry that has hitherto been dominated by console gaming, a trend that never really took roots in India, is now migrating towards on-line gaming and mobile gaming, both of which present substantial opportunity for Indian entrepreneurs in search of a new game to play! With broadband penetration increasing at a healthy rate and cybercafes doubling as gaming parlours in various parts of the country, the long missing domestic demand is expected to revive with a vengeance. The favourable demographic in India should also serve as a boost for the industry as the country’s youth forsake their cricket and movie channels on television and become serious gamers!
We do not have to look far to understand the potential of the gaming industry. Asian game market analysis company Niko Partners predicts that the online gaming market in China alone will be worth over $6 billion in 2012 with the Free To Play business model encouraging many casual