It?s like a war out there. A virtual one, though. Beyond one guy battering a rival in a game, there are games competing amongst themselves for more players. And publishers are trying every trick in the book to give one another a run for their money.

But the battles don?t end there.

The biggest war is happening between various platforms of gaming? the Internet, mobile and console.

While to many it may still seem like a child?s play, gaming is all set to become big business in India. Assocham expects the global market for gaming to grow from the current size of $30 billion to $40 billion by 2010. Moreover, in India alone, brokerage research and analysis firm SSKI expects a CAGR of 55% over 2006-10 with revenues reaching Rs 1,900 crore (excluding business opportunities arising out of outsourcing). Little wonder then that the console, Internet/computer and mobile are fighting for their pound of flesh in this high action category.

As of now, it is the mobile that is taking the lead over all other mediums in the country. The reasons are obvious?high penetration, low cost and easy access. According to market estimates, mobile gaming constitutes around 50% of the Indian gaming industry.

This platform is one medium that even old hands in the industry are betting on. Players like Nazara Games, Hungama Mobile, Mauj Telecom and Indiagames (recently acquired by UTV) currently dominate the Indian mobile gaming market. A high population of java-enabled mobile handsets (must for mobile gaming), high volume-low pricing strategy ($1-1.5 per download) by content providers and aggressive marketing are the main driving forces behind the Indian mobile gaming industry.

?Mobile gaming is for the more casual gamer. For the high-end gamer, the console or online is the answer,? says Smita Jha, principal consultant (Entertainment & Media Practice), PwC. She adds that even five years from now, the mobile base will be much larger, considering the numbers that are swelling by the month.

However, one of the landmark events of 2006-07 has been the increased visibility of the console and online gaming that have been aggressively marketed by Microsoft (XBOX), Sony (Playstation) and Reliance (Zapak.com).

Globally, console gaming is the largest money-spinner with revenues to the tune of $20 billion. And India is expected to have a base of over half a million-installed users by 2007, excluding the vast grey market. The marketing blitzkrieg unleashed by players like Sony (PS2 and PS3), Microsoft (XBOX 360) and Nintendo (GameCube, Wii) during the launch of their products is enough to indicate that the country is gradually becoming a preferred destination for these giants.

Says Mohit Anand, country manager, Microsoft India (Entertainment and Devices), ?Though still a virgin market, India is poised for an exponential growth. There is great potential here and Microsoft is doing everything to tap it.? Microsoft E&D (entertainment and devices) is in the process of growing the market through product awareness, introducing various gaming tournaments, launching gaming peripherals as well as programmes related to gaming to popularise this genre of entertainment.? While Microsoft entered India in 2006 with its Xbox, Sony launched the PlayStation3 earlier this year.

Rationalises Ajay Khanna, general manager, Electronic Arts India, ?We have started seeing the development of a successful gaming ecosystem. Over the past year there has been significant activity on the platform side with the launch of the Xbox360 and PS3 consoles and Intel Core Duo/Vista PC systems in India.?

However, it is the Internet/ computer medium that is a more preferred destination and is giving console gaming a run for its money. The growing Internet user base in India is expected to swell to 40 million by 2010. The figure is enough to lure firms as big as telecom giants Bharti Airtel and Reliance Communications.

After launching Zapak.com, an online gaming portal, Reliance has launched WAN gaming stations in 125 cities to expand its Massive Multiplayer Online Gaming (MMOG) subscriber base. Meanwhile, one-year-old Zapak.com is at present one of the most popular Indian Internet gaming services along with Yahoo games. ?We have committed an investment of $100 million in this industry over the next three years. This investment would be spread over content, access and marketing,? says Rohit Sharma, COO, Zapak.

Meanwhile, Bharti Airtel has recently tied up with Indiagames to launch On-Demand Games on broadband. Even players like UTV have made their entry into the space by acquiring a controlling stake in Ignition Entertainment (a console gaming company based in the UK) and Indiagames (a mobile and broadband gaming Indian company). And it is not only UTV, but also players like Nazara Games, Dhruva Interactive and Mauj have struck deals in the global markets and earn 75% of their revenues from the international markets. It is India?s potential as an outsourcing hub that is driving all the global deals. With a large talent pool of programmers and an extremely high cost arbitrage, India has all the right reasons to become a game development hub for global publishers. The average cost of content development in India is $1 million as compared to $4-$10 million in the US. Major developers like Sony, Microsoft and Nintendo are keen to tap the market for global game developers, particularly high value console gaming. The cost arbitrage benefit of around 5-8 times than in the US and the UK markets is the major driver.

As it is difficult to penetrate a particular market on its own, companies acquire a local firm which provides the insight into the market for developing high value games and use the expertise to develop their own competencies.

As far as the domestic market is concerned, the high cost of consoles is the biggest spoiler.

Customs duty is also discouraging. Indianised content is not available. As the cost of development of a game is huge, not many players can afford to do it on their own. Moreover, the low shelf life of a game adds to their woes. There are notable exceptions, though. But, few and far between.

However, market watchers are of the view that as demand for such games goes up, the economies of scale will iron out the creases. Till then the game is on.