Synopsis – The Future of Gaming in India
A New Era for Gaming in India
- Gaming industry in India is shifting towards non-real money gaming, driven by the growing demand for Indian gaming IPs and talent.
- Monetization is picking up in midcore and casual segments, with companies raising millions of dollars to pursue global gaming studio acquisitions.
- Global investors and local firms are targeting Indian gaming IPs and talent, while AI is easing development, but monetization challenges persist.
India’s gaming industry is undergoing a significant transformation, driven by the shifting sands of monetization. With the regulatory crackdown on real money gaming (RMG) segment, companies are turning their attention to non-real money gaming, which is gaining momentum. According to industry executives, monetization is picking up in midcore and casual segments, with companies raising millions of dollars to pursue global gaming studio acquisitions.
AI: Democratizing Game Development
- Emerging markets always have the problem of making complex games. AI has made it easier for new developers to build high-quality games.
- Industry executives say that AI is democratizing game development, making it easier for new developers to enter the market.
- However, experts caution that the resulting surge in content may outpace user demand, worsening monetization challenges.
The rise of generative artificial intelligence (AI) is democratizing game development, making it easier for new developers to build high-quality games. According to industry executives, AI is making it easier for new developers to enter the market, especially in emerging markets like India.
VC Challenges
| Year | VC Funding |
|---|---|
| 2022 | $661 million |
| 2023 | $130 million |
| 2024 | $195 million |
| 2025 (Q1) | $24 million |
However, venture capital (VC) investments in the Indian gaming space have been declining in recent years. In 2022, VC funding in gaming startups was at its highest, with $661 million invested. However, in 2023 and 2024, the funding decreased to $130 million and $195 million, respectively. In 2025, the first four months saw investments of $24 million.
Monetization Trends
- Midcore games are seeing renewed traction, particularly through in-app purchases.
- Casual and hyper-casual games are being impacted by a global pullback in advertising spends.
- Revenue from midcore games is increasing, with over 60% of RMG-paying gamers also spending on midcore games.
Midcore games are seeing a resurgence in popularity, particularly through in-app purchases. According to industry executives, casual and hyper-casual games are being impacted by a global pullback in advertising spends. However, revenue from midcore games is increasing, with over 60% of RMG-paying gamers also spending on midcore games.
Global Interest in Indian Gaming IPs and Talent
- Global investors and local firms are targeting Indian gaming IPs and talent.
- Krafton, a global gaming giant, acquired a 75% stake in Nautilus Mobile for Rs 118 crore.
- Bitkraft Ventures, another global gaming giant, is doubling down on the Indian market, with a new fund to support indie game developers.
Global investors and local firms are showing increased interest in Indian gaming IPs and talent. Krafton, a global gaming giant, acquired a 75% stake in Nautilus Mobile for Rs 118 crore. Bitkraft Ventures is also doubling down on the Indian market, with a new fund to support indie game developers.
AI: The Boon and the Bane
“AI will lead to far more content than before. If, say, 1,000 games were being developed each year, with AI, that number could go up tenfold. But the number of users remains limited. So, I think the problem won’t be content creation, it will be the next step of user acquisition.” – Anurag Choudhary, founder of Felicity Games
However, experts caution that while AI is democratizing game development, it also poses challenges. The resulting surge in content may outpace user demand, worsening monetization challenges. As Anurag Choudhary, founder of Felicity Games, noted, “AI will lead to far more content than before. If, say, 1,000 games were being developed each year, with AI, that number could go up tenfold. But the number of users remains limited. So, I think the problem won’t be content creation, it will be the next step of user acquisition.”
Industry Outlook
The gaming industry in India is at a critical juncture, with the potential to become a major player in the global gaming market. While there are challenges to be addressed, the industry is also showing signs of growth and innovation. According to industry executives, the next few years will be crucial in determining the industry’s future. As Anuj Tandon, former CEO of gaming at JetSynthesys, noted, “India today is at a point uncannily similar to where China was in 2008. Around 400-500 entrepreneurs and studios are building games here. Back then, China was just starting to adopt mobile payments; India is already ahead, and monetization has started to kick in. In China, those who invested then saw 20 gaming IPOs in six to seven years.
