New Delhi, November 15, 2007 – IDC's latest study on the online gaming market says India's Online Gaming Market is on a growth track, with the key players pursuing well-defined positions for the long haul. 

From a couple of significant active players in the Indian market in 2005, the number of Online Gaming Players has risen to at least four in 2006. Significantly, as more and more players are offering MMOG (Massively Mullti-player Online Game) and MMORPG titles (Massively Mullti-player Online Role-playing Game), the market now has the competition it needs in order to expand in early stages. 

MMOG and MMORPG games increase the incidence of serious gamers versus casual gamers. The lives of casual games are very short, as gamers tend to migrate from one game to another, and from one service provider to another. There is more stickiness in case of MMOG and MMORPG, due to more attachment with the characters and also due to community developed around such games. 

Online Gaming service providers are also realizing the importance of communities around games and are paying attention to the development of game-specific communities. 

"From about 1.3 million online gamers in India in 2006, the number is likely to grow 11 fold to more than 14.9 million gamers in 2011. This represents a healthy growth at a CAGR of around 63%. The total subscription revenue was US$ 1.22 million in 2006 and is expected to be around US$ 72 million by 2011, which is a CAGR of slightly above 126%” said Deepak Kumar, Head of Communications Research, IDC India.

"India is on the verge of a takeoff, with the groundwork by the players nearly over. The new genres of games and the development of a gaming ecosystem and culture, supported by a rise in gaming cafes, will be the key to market growth. The entry of big players will help grow awareness and expand the market, associated with a rise in promotion spend," according to Kapil Dev Singh, Country Manager, IDC India.

The level of interest in online gaming will continue to increase, as online gaming service providers are able to introduce more varied offerings. From the telco carrier perspective, such varied offerings represent not only an evolution of their respective VAS chains but also a feasible alternative revenue stream.