The takers for console gaming in India are few and far between as India’s gaming ecosystem is dominated by its heavy numbers of mobile gamers and the number of app downloads. While Contra, Counter Strike, Mario, Road Rash and Need for Speed, among others share a fanbase, these games have been a distant memory as games like Subway Surfers, Fruit Ninja, Candy Crush and Battleground Mobile India, have managed to take a centre stage. “Mobile gaming dominates the gaming space in India, accounting for more than 90% of revenue. Affordable smartphones having the hardware for AAA games have solidified their standing in the gaming sector. Additionally, game developers are also optimising their games for affordable phones. PC gaming is more popular than console gaming due to the PC being far more versatile. India’s per capita income is about $2700 and a console inclusive of two controllers and two games would cost approximately Rs 60,000 – Rs 75,000, a significant portion of national per capita income. A game enthusiast would also need a big TV to enjoy the experience which would only add to the cost. Culturally, one television in Indian homes is usual in middle-class families and members watch TV together. However, console gaming will have a boost due to the digital-savvy population in India. The current generation is expected to have multiple digital devices, especially specialist entertainment devices,” Dhruv Garg, tech and policy lawyer told BrandWagon Online.
The console gaming market in India is valued at Rs 150.1 crore in 2024 and is expected to grow at a compound annual growth rate (CAGR) of 0.59% from 2024-2028 whereas the mobile gaming market is valued at Rs 126.63 crore and is expected to grow at a compound annual growth rate of 7.02% to reach Rs 155.19 crore by 2027, as per market intelligence platform, Statista.
The gaming boom
According to industry experts, mobile gaming accounts for 90% of the revenue within the gaming industry. Additionally, the mobile gaming ecosystem had over 9.5 billion gaming app downloads in 2023. Yet the demand for console gaming and PC gaming has increased recently, making India a lucrative market for Sony, Microsoft and Nintendo. Average revenue per user (ARPU) in India’s video games market is expected to hit Rs 1813.42, as per Statista. While India is known to be a cost-conscious market, it is believed that gamers are starting to splurge with the increased propensity to spend and the overall growth of the market. “Mobile gaming and PC’s dominance can be attributed to factors like affordability, accessibility, and the widespread availability of smartphones. On the other hand, console gaming requires a higher initial investment in hardware and software, which has limited its growth to some extent. Despite this, the console and PC gaming market in India is growing, driven by factors like increasing disposable income, growing awareness and interest in gaming, and the emergence of a gaming community. Titles like FIFA, GTA, and PUBG have garnered attention on these platforms,” Sridhar Muppidi, co-founder, YesGnome and convenor, IGDC, said.
Experts believe that the reason for the slow growth of consoles is due to their perception of expensive single-use devices compared to multi-use devices like mobiles and PCs. While gaming continues to be a source of entertainment, consoles continue to struggle with the convenience and affordability of mobile gaming. However, experts also highlight that while the initial investment is high, the experience is superior to mobile gaming. Also, the social aspect of playing video games with friends is hard for mobile games to replicate. “India, while being a mobile-first gaming ecosystem, is poised to be a vibrant and versatile gaming powerhouse in the coming decade. Central government and state governments are working on their respective AVGC policies focusing on making the Indian gaming market a 5 trillion dollar industry within a couple of years. An element of these policies will be to promote Indian thematic gaming content made for mobile as well as console. As console gaming will see unprecedented growth at the back of shifting consumer behaviour towards immersive and high-end gaming,” Roland Landers, CEO, All India Gaming Federation, stated.
Cross-platform play has become increasingly common with newer generations of consoles and PCs. Earlier, cross-platform playing used to be a hurdle for gamers as they were restricted to their platforms. However, the restrictions continue to persist when it comes to exclusive titles for Sony’s PlayStation or Microsoft’s Xbox. Microsoft recently decided that it would raise a white flag in the console war with four exclusive Xbox titles (Hi-Fi Rush, Pentinent, Sea of Thieves and Grounded) being available to be played on PlayStation. “PlayStation and Xbox have their stashes of exclusive titles so, if a gamer wants to play a PlayStation exclusive, they’ll need to have a PlayStation and the same goes for Xbox exclusives. Sometimes developers release their exclusives on multiple platforms. But that usually involves some behind-the-scenes negotiations and agreements with the platform holders,” Manvendra Shukul, founder and CEO, Lakshaya Digital, highlighted.
Gaming revenue is expected to have muted growth and remain below pre-pandemic levels through 2026 as gamers record fewer hours of playtime, as per research firm, Newzoo. The market is expected to grow 2.7% from 2023 to 2026, a decrease from the 7.2% growth rate from 2015 to 2021. Gaming hours have declined with average quarterly playtime falling by 26% from 2021 to 2023. The trend is expected to continue this year with a weak gaming release schedule which would further impact the industry’s expansion.
Experts stated that console gaming is still growing at a slower rate globally compared to PC and mobile gaming, despite the growth of cross-platform play due to a variety of factors, including the higher cost of consoles and games, the lack of interoperability between consoles and the lack of innovation, and the growing popularity of mobile gaming, offering a more accessible and affordable gaming experience for players. In contrast to that, PC and mobile gaming have grown rapidly, driven by factors such as increasing affordability of gaming hardware, the wide availability of games, and the convenience of playing on devices that people already own. The growth has made PC and mobile gaming more attractive to a larger audience, leading to slower growth in the console gaming market by comparison.
Doom and Gloom for console gaming in India?
The affordability and accessibility of mobile gaming have impacted the console gaming sector, especially in countries like India where many middle-class families find it challenging to afford gaming consoles that can support video games. Mobile gaming’s accessibility and lower cost have made it the preferred choice for many gamers, leading to slower growth in the console gaming sector. Despite the growing popularity of console/PC gaming, there haven’t been many takers for it, due to its pricing. A Sony PlayStation 5 ranges from Rs 49,990- Rs 54,990 while an Xbox would range from Rs 39,990- Rs 55,990, which makes gaming consoles a distant dream for the majority of middle-class group in India. Contrary to this, mobile gaming has witnessed significant growth post-Covid, due to its accessibility and various free-to-play models. “While the average middle family continues to find it unaffordable to buy a console, Gen-Z, which has grown up with video games from their infancy, is increasingly buying consoles once they start earning. The struggle with affordability is a big one for many families, and it’s a hurdle that console manufacturers have to navigate carefully. When families are on a tight budget, splurging on a console is unlikely to be at the top of their priority list, which can impact console sales and hinder market growth. Meanwhile, the accessibility of mobile gaming opens up a whole new world of gaming for folks who might not have considered themselves gamers before,” Shukul, stated.
Industry experts highlighted that the companies are introducing budget-friendly console models and subscription-based services. Various strategies are being adopted by gaming console companies including periodic price reductions, bundle deals that offer games and accessories at discounted prices, finance options or installment plans, and the shift towards digital distribution of games, which reduces the cost of gaming on consoles. “The challenge of making consoles more affordable and appealing to middle-class families in India persists. To encourage more gamers to buy consoles, companies will need to continue innovating and offering compelling value propositions that cater to the needs and preferences of Indian gamers. This could include developing more affordable console variants and increasing the availability of localised content,” Muppidi, added.
Additionally, the high cost of game discs and the price difference between console games and mobile games can hinder customer acquisition for console gaming in India. With mobile gaming being free to download or significantly cheaper, cost-conscious consumers may be reluctant to invest in more expensive consoles. It is not entirely about the pricing but also about accessibility as well as localising content to be resonant with the Indian diaspora. According to Shukul, financing options, payment plans, and trade-in programmes can make gaming more accessible, especially for families on a budget.
While competitive gaming is booming in India, console gaming is expected to grow. With titles like Grand Theft Auto (GTA), FIFA and Need for Speed garnering attention in the country, it indicates a strong appetite for console gaming experiences. The development of gaming infrastructure, including high-speed internet connectivity and gaming zones, is expected to further boost the popularity of console gaming in India.