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KEY HIGHLIGHTS
1. Real Money Gaming 2. Average revenue per paying user
Mobile gaming expected to triple to a $5Bn+ market opportunity by 2025300Mn+ user base, growing with ease of access; spike in new adoption; leading companies actively shaping market
evolution with increased marketing spends
Unprecedented level of investor interest indicative of high expected growth in the industry
33% of all funding for gaming in India came in Q12021; gaming platforms winning at the back of variety in proposition
Consumer research insights point to market evolutionSix gamer personas defined by context i.e. occasion, group composition; limited correlation to demographics; rise of
women gamers, gaming increasingly being viewed as "productive" and "social", competition induces more spend
Monetization in non-RMG nascent but trending positivelyLarge dependence on ad revenues today (~43% of non-RMG1 spend) with low paying base (7-8% for non-RMG1); higher
ARPPU's2 expected to provide fillip to industry revenues
Familiarity in content, user generated content (e.g., esports), influencers serve as effective hooks to onboard new gamers, ease adoption and drive more engagement overall
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Who plays where, key
trends shaping the
ecosystem
Insights from consumer
research
Action agenda for
companies
$5B+ market
opportunity at the back
of exponential growth
EVOLUTION OF
THE INDIAN
GAMING
ECOSYSTEM
DECODING THE
INDIAN GAMER
REALIZING THE
OPPORTUNITY
MARKET
OVERVIEW
INSPIRATIONS:
WHAT IT TAKES
TO WIN
Learnings from
exemplars
CO
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CO
NT
EN
TS
TA
BL
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f
EVOLUTION OF
THE INDIAN
GAMING
ECOSYSTEM
DECODING THE
INDIAN GAMER
REALIZING THE
OPPORTUNITY
Who plays where, key
trends shaping the
ecosystem
Insights from consumer
research
Action agenda for
companies
INSPIRATIONS:
WHAT IT TAKES
TO WIN
Learnings from
exemplars
MARKET
OVERVIEW
$5B+ market
opportunity at the back
of exponential growth
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KEY HIGHLIGHTS
Gaming a $1.8Bn sunrise sector in India: still relatively small (~1% of global) but growing very
fast (~38% CAGR)01
Market made up of a mix of genres: different evolution vs. markets like China wherein action and
adventure formats steeping in local connotations reign supreme05
Multiplayer games are seeing increased time spent and monetization because consumers like to
compete and spend time socially with their friends04
Monetization still nascent: paying base still low (7-8% for non-RMG1, 15-20% for RMG) but
trending positively and alongside higher ARPPU's2 expected to provide momentum to industry
revenues 03
Mobile-first trend within gaming continues strong: sizeable user base (300Mn+) with ~$1.5Bn
revenues and expected to reach $5Bn+ by 2025 - increased availability and adoption
turbocharging user base02
MARKET
OVERVIEW
DECODING THE INDIAN GAMER
REALIZING THE OPPORTUNITY
INSPIRATIONS: WHAT IT TAKES TO WIN
EVOLUTION OF THE INDIAN GAMING ECOSYSTEM
1. Real money gaming 2. Average revenue per paying user
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Gaming is a sunrise sector in India, growing faster than most media sub-sectors
1. Gaming revenue includes console, PC and mobile gaming 2. Highly negatively impacted due to COVID
Source: Industry experts, Magna Global, PQ Media, Ovum, NewZoo, BCG Analysis
9.5
3.0 2.91.9 1.8 1.5 1.0
0.5
AudioCinema & Home
Entertainment2
Television Books Newspapers
& Magazines
Social &
Online Media
Gaming (mobile
and non mobile)
OTT Video
2018-19
CAGR %4% 9% 1% 26% 61% 4%37% 10%
-5% 13% -31% 11% 26% -15%39% -62%2019-20
CAGR %
Revenue
(2020)
in $Bn
MARKET
OVERVIEW
DECODING THE INDIAN GAMER
REALIZING THE OPPORTUNITY
INSPIRATIONS: WHAT IT TAKES TO WIN
EVOLUTION OF THE INDIAN GAMING ECOSYSTEM
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Mobile gaming in India is
$1.5Bn today, expected to
reach $5Bn+ by 2025
Gaming in India smaller than US, China but growing rapidly on the back of "mobile first" phenomenon
1. Including console, PC and mobile gaming
Source: Industry experts, Magna Global, PQ Media, Ovum, NewZoo, BCG Analysis
MARKET
OVERVIEW
DECODING THE INDIAN GAMER
REALIZING THE OPPORTUNITY
INSPIRATIONS: WHAT IT TAKES TO WIN
EVOLUTION OF THE INDIAN GAMING ECOSYSTEM
Mobile Gaming as % of Gaming market in the country (2020)
CAGR of Gaming1 market in the country (2017-20)
Gaming1 market in the country as % of Global gaming
market (2020)
Gaming1 market size in the country (2020)
India
~86%
38%
1%
$1.8
Bn
US
~28%
10%
23%
> $40
Bn
China
~59%
8%
26%
> $45
Bn
Console is largest
segment of gaming
market in US (55-60%)
PC is second largest
segment of gaming
market in China (~40%)
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Massive opportunity for mobile gaming to expand in IndiaHeadroom for growth across key drivers: availability, adoption and monetization
1. Defined as a person who plays at least one mobile game 2. Does not include RMG 3. Avg annual spend without PPP adjustment for India is 1-3$ and for China is 35-40$Source: Industry experts, NewZoo, F&S, EIU, Forrester Analytics, BCG analysis
AVAILABILITYInternet connected
population % (2020)
ADOPTIONMobile gamers1 as % of
population (2020)
MONETIZATIONMobile gamer avg. annual spend2
(PPP adjusted for 2020)
46%
60%
89%
46%
60%
89% $73-77
$3-103
$57-663
22%
45%
52%
Expected to reach 62% by 2025 led
by increasing access to high speed
and cheap mobile internet in India
Monetization in very nascent stages e.g. India
accounted for ~25% of PUBG downloads, but
contributes to <5% of their global revenue
India
China
USA
MARKET
OVERVIEW
DECODING THE INDIAN GAMER
REALIZING THE OPPORTUNITY
INSPIRATIONS: WHAT IT TAKES TO WIN
EVOLUTION OF THE INDIAN GAMING ECOSYSTEM
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Gaming in India has been catalyzed by better smartphones, increased internet access, popular titles, influencers, and COVID
Indians have access to
better games than ever
Prior to its ban, PubG Mobile had
50Mn MAUs in India
Indian games and platforms such as
Ludo King, Dream11, and MPL have
~100Mn+ downloads
Indians have more
gaming friendly phones
Avg. household has 2 smartphones
The RAM of smartphones has
increased by 3-4x in the past five
years, enabling more advanced
gaming
… with cheaper, faster and
better internet quality
46% internet users connected on avg.
speed of 12Mbps
Avg. monthly data usage per user in
India is 14.6GB vs 11GB for US
Increased marketing and
influencers are driving
discovery of games
E.g. Dream11 is the official sponsor of
the IPL and MPL sponsors the Indian
cricket team kit
17+ Indian gaming influencers have
1Mn+ followers on YouTube
Spike in digital adoption
during the pandemic
Overall spike in new adopters for
digital entertainment
Online gaming provides much-
needed social interaction
MARKET
OVERVIEW
DECODING THE INDIAN GAMER
REALIZING THE OPPORTUNITY
INSPIRATIONS: WHAT IT TAKES TO WIN
EVOLUTION OF THE INDIAN GAMING ECOSYSTEM
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3 key axes define gaming landscapeLEGEND
Size of bubble denotes relative share today on the axis
Green color denotes higher growth outlook expected
MARKET
OVERVIEW
DECODING THE INDIAN GAMER
REALIZING THE OPPORTUNITY
INSPIRATIONS: WHAT IT TAKES TO WIN
EVOLUTION OF THE INDIAN GAMING ECOSYSTEM
GENRE
ENGAGEMENT
MONETIZATION
USER PAID AD REVENUE
MULTIPLAYERSINGLE PLAYER
ACTION
& ADVENTURE
SPORTS
BOARD
CASUAL
CARD & CASINO
STRATEGY
Higher multiplayer interaction seen in
action and strategy type games
Multiplayer gamers, on avg. spend 2-3x more
than single player gamers.
Game IP also monetized through people
engaging as "spectators"
IAPs are more viable in complicated
action or strategy type games where
users are more investedSource: App Annie, industry experts, BCG Consumer Survey, 2021; N= ~3,200 respondents across 21 cities in India, BCG analysis
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Engagement: Multiplayer sees higher time spent
1. Average time per user per month (mins) 2.Scoring based on popular game modes and number of simultaneous playersSource: AppAnnie, Internet search, industry experts, BCG Consumer Survey, 2021; N= ~3,200 respondents across 21 cities in India, BCG Analysis
Low
0
Medium High
200
400
600
800
1,000
1,200
1,400
1,600
Clash of Clans
MULTIPLAYER INTERACTION2
Last Shelter: SurvivalCoin Master
Lords Mobile
Average Time1
Free Fire
Gardenscapes
Call of Duty
Candy
Crush Saga
Rise of Empire
Ultimate Teen Patti
Ludo King
Action & adventure Casual SportsStrategy BoardCard and Casino
Either single or interaction very limited to viewing relative positions on dashboards
Homescapes
8 Ball PoolTeen Patti
Teen Patti
Gold
PUBG
Carrom
Pool
MARKET
OVERVIEW
DECODING THE INDIAN GAMER
REALIZING THE OPPORTUNITY
INSPIRATIONS: WHAT IT TAKES TO WIN
EVOLUTION OF THE INDIAN GAMING ECOSYSTEM
I got bored of playing Candy
Crush alone after a while
─ Former Candy Crush Player
Time flies when I’m gaming with my friends. PUBG is
not just a way for us to have fun and compete. It’s also
where we chill and hangout after school
─ PUBG Player
eFootball PES 2020
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Strategy, casual and board games breaking in
top games
Revenue1 skewed towards top apps
Genre: Action and adventure, strategy dominate with local games from other genres breaking into top games
1. Only user paid revenue for apps available on app stores, does not include ad revenue or RMGSource: App Annie, industry experts, press search
KEY
INSIGHTS
20%15%
30%30%
20%20%
20%
15%
5%
10%
5%10%
Sports
20202017
Casual
Board
Card and
casino
Strategy
Action and
adventure
Top 20 games by split of genre
MARKET
OVERVIEW
DECODING THE INDIAN GAMER
REALIZING THE OPPORTUNITY
INSPIRATIONS: WHAT IT TAKES TO WIN
EVOLUTION OF THE INDIAN GAMING ECOSYSTEM 90% User paid revenue comes from the top 20 apps1
Revenue from top 20 apps is from action and
adventure genre35%
New apps break in to the top 20 apps every
year (2017-20)5 or 6
Top apps revenue1 mix skewed
on top genre
Flux in top apps, new entrants breaking in regularly
Candy
Crush Saga
GardenscapesCoin
Master
Ultimate
Teen Patti
Teen
Patti
Teen Patti
Gold
8 Ball Pool eFootball PES 2020
LUDO King Carrom Pool
Lords
Mobile
Last Shelter:
Survival
Rise of
Empire
Mobile
Legends
Clash of
Clans
Garena:
Freefire
PUBG
Mobile
Call of
Duty
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Genre breakdown among top 20 grossing games in India and China
Genre mix different vs. China: China growth story led by action and adventure steeped in local cultural themes
14 out of top 20 games
by MAU in China are
developed by local
developers vs. just 1
game in India
(LudoKing)
Tencent and NetEase
acquire rights to
global IP and localize
them for Chinese
users via content,
language and
monetization
KEY
INSIGHTS
10%
50%
80%
30%
10%
30% 30%
20% 15%
20%20%
20%15%
10%
10%
CasualRacing Card and casinoSports Board Action and adventure Strategy
5%5%
India China
China had a gradual learning curve from locally making simple board games to the complex games of today. Both developers and gamers have gradually evolved. On the other hand, India has imported complex games and skipped the learning curve.
─ Chinese gaming industry expert
MARKET
OVERVIEW
DECODING THE INDIAN GAMER
REALIZING THE OPPORTUNITY
INSPIRATIONS: WHAT IT TAKES TO WIN
EVOLUTION OF THE INDIAN GAMING ECOSYSTEM
5%
5% 5%5%
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Monetization: Real money gaming largest constituent of revenue pool driven by higher user paying propensity
1.2Bn
1.5Bn
Ad revenue
20%
27%
IAP + Paid apps
53%
Mobile Gaming (India)User paid totalRMG
User paid B2B revenue
7-8%Paying users
15-20%Paying users
Highly skewed: 90% user paid
revenue comes from top 20 Apps1
Companies innovating to increase share of user payments -expected to increase in relative share over the next 2-3 years
Revenue1 (2020, $Bn)MARKET
OVERVIEW
DECODING THE INDIAN GAMER
REALIZING THE OPPORTUNITY
INSPIRATIONS: WHAT IT TAKES TO WIN
EVOLUTION OF THE INDIAN GAMING ECOSYSTEM
1. Only user paid revenue for apps available on app stores, does not include ad revenue or RMGSource: App Annie, industry experts, BCG Analysis
Smaller share but due to revenue
skew, most non-RMG games
significantly depend on ads today
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Various learnings being adopted to enhance user monetization
MARKET
OVERVIEW
DECODING THE INDIAN GAMER
REALIZING THE OPPORTUNITY
INSPIRATIONS: WHAT IT TAKES TO WIN
EVOLUTION OF THE INDIAN GAMING ECOSYSTEM
Source: Industry experts, Google report 2020, BCG Consumer Survey, 2021; N= ~3,200 respondents across 21 cities in India, press search
Games have seen rise in
payments with the
introduction of UPI and
payment wallets (vs. only
credit cards)
Wider suite of
payment options
Extremely byte-sized options to
enhance trials by "never-
spenders"
Some games have introduced
options starting at ₹1-10 and
have seen great results
Cosmetic purchases serve as
popular route, especially
when coupled with social
perception of payers
People pay to get rare items
that they can show off in-
game
In-game product variety
and perception of payers
Sachet pricing
Paytm Amazon Pay
PhonePe GPay
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15
EVOLUTION OF
THE INDIAN
GAMING
ECOSYSTEM
DECODING THE
INDIAN GAMER
REALIZING THE
OPPORTUNITY
Who plays where, key
trends shaping the
ecosystem
Insights from consumer
research
Action agenda for
companies
MARKET
OVERVIEW
$5B+ market
opportunity at the back
of exponential growth
INSPIRATIONS:
WHAT IT TAKES
TO WIN
Learnings from
exemplars
CO
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LEGEND: ARCHETYPES OF COMPANIES IN THE GAMING ECOSYSTEM
Mix of homegrown and global players competing in different plays across the value chain
AD NETWORKS
GAME TECH GAMING PLATFORMS
APP STORES
INDEPENDENT DEVELOPERS
STUDIOS AND PUBLISHERS DEVICES
PAYMENT
SOCIAL
OTHER IP OWNERS
Marketing Distribution Consumption
Source: Industry experts, press search
MARKET
OVERVIEW
DECODING THE INDIAN GAMER
REALIZING THE OPPORTUNITY
INSPIRATIONS: WHAT IT TAKES TO WIN
EVOLUTION OF THE INDIAN GAMING ECOSYSTEM Enablers Content development Interfaces
GAMERS
ESPORTS TEAMS ESPORTS LEAGUES
1
2
3
4
5
6
7
8
9
10
11
12
UnityUNREAL
Engine
Lucasfilm Ltd FIFA
Lucid Labs
Frostwood
Interactive
Underdogs
Studio LLP
Xigma Games MPL: Mobile
Premier LeagueWINZO
Paytm
First GamesROBLOX STADIA
Gametion
Games 24
Seven
Ctro
Tencent
Games
Dream11
King Ubisoft
GameskraftKrafton Game
Union
Moonfrog
EPIC
Games
Steam
Google Play
Store
IOS App
Store
App
Bazaar
NODWIN
GamingESL India
Audience
Network by
InmobiGoogle
AdMobTSM Team Team Finatic
GPay Paytm
Vivo Samsung
Backbone Mi
YouTube
Gaming
Gaming
Discord
NON EXHAUSTIVE
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Increased focus on familiar content, along with visual and voice features are helping onboard
new gamers and driving higher engagement 01
Investors are actively scouting and shaping space: increased early-stage activity with new highs
in terms of $s invested (~33% of all gaming funding came in 2021Q1)05
Gaming platforms emerging - attracting user and investor attention: proposition of diverse
games as a one stop shop04
Influencer-driven user generated content, livestreaming and the nascent but growing ~$100Mn
esports industry are driving gaming adoption and higher engagement03
India emerging as talent hub - for India and for the world: larger talent pool with # gaming
companies having gone up >10x over last decade. Early investments by international studios
translating to talent proliferation now02
5 key trends in the Indian mobile gaming market
MARKET
OVERVIEW
DECODING THE INDIAN GAMER
REALIZING THE OPPORTUNITY
INSPIRATIONS: WHAT IT TAKES TO WIN
EVOLUTION OF THE INDIAN GAMING ECOSYSTEM
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LudoKing has grown rapidly because:
• Indians are already familiar with the board
game
• Visual tutorials made the mobile game easy
and intuitive
Familiarity in content and live communication features attractnew gamers and simplify onboarding
Source: News articles, industry experts, press search
MARKET
OVERVIEW
DECODING THE INDIAN GAMER
REALIZING THE OPPORTUNITY
INSPIRATIONS: WHAT IT TAKES TO WIN
EVOLUTION OF THE INDIAN GAMING ECOSYSTEM
This behavior is also seen among
popular PUBG streamers, who often stream in local languages like Hindi
and Tamil
Indian gamers are often unwilling to set their device settings to non-English. Thus, when there is reduced
reliance on text e.g., voice chats or visual tutorials, it helps in adoption (breaking language barrier)
─ Gaming industry expert
Like Ludo King in India, Happy
Mahjong and Chinese Chess in China
are mobile avatars of popular offline
board games
A key driver of PUBG's success in India is its
voice chat function in the app, which allows
gamers to communicate in real time in their
language of choice
PUBG
LUDO
King
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Talent begets talent: international studios have groomed Indian developers, who have in turn gone on to start their own companies
Source: App Annie, news articles, industry experts, press search
MARKET
OVERVIEW
DECODING THE INDIAN GAMER
REALIZING THE OPPORTUNITY
INSPIRATIONS: WHAT IT TAKES TO WIN
EVOLUTION OF THE INDIAN GAMING ECOSYSTEM
15,000+Game developers
in India
25
20202010
275+
+10x
Total number of gaming companies in India
International studios such as EA, Ubisoft and Zynga had set
up game development centers in India in the early 2010’s
Valued at $950Mn within 3 years of launch
Acquired for $360Mn by Swedish giant MTG
Acquired for $100Mn by Stillfront
Raised $2.5Mn from Lumikai, Leo Capital
Select examples of ex-Zynga founders
Raised $1Mn+ from Kae Capital, Graph Ventures
MPL
PLAYSIMPLE
Moonfrog
Bombay Play
Hypernova
Interactive
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YouTube's membership subscription platform
Aided by new ways of monetization; top
streamers making >$1Mn a year
Livestreaming is changing the gaming landscape – from consumption to distribution and beyond
Source: Subscribers as of Jul-2021 – YouTube; Industry experts, AppAnnie, news articles, BCG analysis
MARKET
OVERVIEW
DECODING THE INDIAN GAMER
REALIZING THE OPPORTUNITY
INSPIRATIONS: WHAT IT TAKES TO WIN
EVOLUTION OF THE INDIAN GAMING ECOSYSTEM
Big Youtubers are making 50-60 lakhs ($65-80k USD) a month from YouTube alone. Brand partnerships are over and above that.
─ Head of Talent Management Agency
YouTube’s tipping platform ‘Superchat’
100Mn+ MAU’s on YouTube Gaming,
explosive engagement for streamers
No. of YouTube subscribers of top gaming vs. other creators
0.03 0.56
14.05
20.92
15.0510.13
Jul Aug Sep Oct Nov Dec
AmongUs Android MAUs in India (Mn)
10.9
11.6
12.7
18.9
20.7
21.5
23.3
25.6
26.6
31.3
Desi Gamers
Lokesh Gamer
AS Gaming
Techno Gamer
BBK Vines
Technical Guruji
Amit Bhadana
Ashish Chanchalani
Total Gaming
CarryMinati
Non-gaming creators Gaming creators
Changing distribution: AmongUs hit
21Mn MAU organically via streamers
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Esports, though relatively nascent, is primed to scale as moremid-core and hard-core titles find adoption in India
Source: Industry experts, Newzoo, F&S, news articles, press search
MARKET
OVERVIEW
DECODING THE INDIAN GAMER
REALIZING THE OPPORTUNITY
INSPIRATIONS: WHAT IT TAKES TO WIN
EVOLUTION OF THE INDIAN GAMING ECOSYSTEM
12%
94%
18%
64% 6%
Sponsorship B2B
Total
Publisher
fees
Tickets and
merchandise
Media
rights
Total
97Mn
User paidB2B revenue
Nascent but fast growing ~$100Mn esports market is
increasing the life span of games – competitive
tournaments run for 5-10 years for some games
Esports Revenue (2020, $Mn)Global esports outfits like TSM and Fnatic have
setup India specific teams to recruit local players
and compete in regional tournamentsTSM
Touted players like Mortal, Scout and Owais are
building large fanfare priming them to be the
superstars for the next generationPUBG
Leading publishers hosting big esports
tournaments with prize pools > $100K USDFreefire
India esports audience lags global peers – 17% of
streaming audience watch esports in India vs 27%
globally; expected to rise as formal tournament
organizers such as Nodwin educate audiences
NODWIN
Gaming
Emerging opportunity in building school & college
esports league; 10,000+ schools participate in
PlayVS (US based startup) leagues in N. AmericaPlayVS
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Gaming platforms are attractive for users and investors because they are diversified across titles and genres
1. Company interview 2. Secondary researchSource: App Annie, news articles, industry experts, press search
MARKET
OVERVIEW
DECODING THE INDIAN GAMER
REALIZING THE OPPORTUNITY
INSPIRATIONS: WHAT IT TAKES TO WIN
EVOLUTION OF THE INDIAN GAMING ECOSYSTEM
GAMING FUNDING IN 2020 ($Mn)
364
412
48
TotalGaming platforms Others
Investors are bullish on gaming platforms
because they mitigate the hits-driven nature of
games. Such platforms accounted for over 88% of
all VC funding in gaming in 2020
Platforms offer games across genres and
formats such as casual, sports, fantasy, 1-
1 battles, tournaments etc.
>70Mn users reported in 20201
>20Mn users as of April 20202
>70Mn users as of Dec 20192
There are numerous titles, giving something
for every context for a gamer, resulting in both
more # of players and more usage
MPL
WINZO
Paytm First
Games
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Target Strategic Funding Amount Type of deal
Playsimple MTG $360Mn M&A
MoonfrogStillfront
Group$100Mn M&A
NODWIN Gaming Krafton $22.5Mn Strategic
LOCO Krafton $9Mn Strategic
Investor activity booming: gaming is the next big frontier in consumer
Source: Tracxn, Pitchbook, industry experts, press search
42 45 53 34
176 157 175
412
549
20172010-13 2014 2015 20192016 2018 2020 2021 Q1
+38%Total funding raised ($Mn)
MARKET
OVERVIEW
DECODING THE INDIAN GAMER
REALIZING THE OPPORTUNITY
INSPIRATIONS: WHAT IT TAKES TO WIN
EVOLUTION OF THE INDIAN GAMING ECOSYSTEM
Active gaming investors and key investments Emerging strategic and M&A activity (2021)
*not exhaustive
MPL Moonfrog Rheo
Dream11 WINZO
LOCO Bombay Play eloelo
Get MEGA Mech Mocha
Playsimple Turnip
Sequoia
Capital India
Kalaari capital
Lumikai
Accel
Elevation
Octro
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EVOLUTION OF
THE INDIAN
GAMING
ECOSYSTEM
REALIZING THE
OPPORTUNITY
Who plays where, key
trends shaping the
ecosystem
Action agenda for
companies
MARKET
OVERVIEW
$5B+ market
opportunity at the back
of exponential growth
INSPIRATIONS:
WHAT IT TAKES
TO WIN
Learnings from
exemplars
CO
NT
EN
TS
TA
BL
E o
f
Insights from consumer
research
DECODING THE
INDIAN GAMER
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Many faces to one individualChoice of games context oriented with different drivers. Limited correlation of factors like
demographics to the gamer archetype01
Gaming is social; more players induces competition and loosened purse stringsClose to half the gamers prefer to play games with friends and family as a means of socializing; high
engagement gamer archetypes tend to spend more across monetization preferences04
Rise of women gamers Increasing adoption by women gamers albeit in low engagement archetypes (higher engagement
archetypes continue to be male dominated) – helps push overall maturity curve for gaming in India03
Game discovery continues to be an unmet need Discovery continues to be a pain point with gamers seeking more personalized game recommendations
(Gamers today discover games largely through word-of-mouth, app stores or social media)02
Gaming is no longer perceived as a 'waste of time'Gamers are seeing gaming in a positive light, and are likely to use gaming as a means of therapy as
well as for educational purposes 05
KEY CONSUMER INSIGHTS
MARKET
OVERVIEW
DECODING THE INDIAN GAMER
REALIZING THE OPPORTUNITY
INSPIRATIONS: WHAT IT TAKES TO WIN
EVOLUTION OF THE INDIAN GAMING ECOSYSTEM
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GROUP
COMPOSITION
CATEGORY
INVOLVEMENT
OCCASION
CONTEXT
PROACTIVE
Curious about trying out
trending/ popular games,
actively seeking to play
AD-HOC
Distract oneself/ enhance
mood and feelings/
unwind and relax
LOW
Prefer easy to play,
low commitment
games
HIGH
Prefer challenging
games, with high
elements of action
and competition
MODERATE
Prefer games of
one's choice/ genre
with moderate
commitment
SOLO
Playing game of one's
choice to pass time, relax
or indulge
GROUP
Playing group games to
socialize, bond and
compete with friends
CONSUMER NEEDS
Indian gamer: Same individual, multiple contextsNot defined by demographics – same individual can shuffle between multiple 'why' and 'how' contexts
Source: BCG Consumer Survey, 2021; N= ~3,200 respondents across 21 cities in India
MARKET
OVERVIEW
DECODING THE INDIAN GAMER
REALIZING THE OPPORTUNITY
INSPIRATIONS: WHAT IT TAKES TO WIN
EVOLUTION OF THE INDIAN GAMING ECOSYSTEM
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1. includes friends and strangers, both in person and virtually2. was considered a screener and treated outside of the survey scopeSource: BCG Consumer Survey, 2021; N= ~3,200 respondents across 21 cities in India
TIME CRUSHINGGaming as a filler activity in known windows of time, often to simply pass time; can be mindlessly addictive
SOCIALIZING Semi-competitive gaming with friends to catch-up, socialize and have fun
INDULGINGGaming to indulge and treat oneself, often resulting in feelings of reward, self-gratification and freedom
DIEHARD GAMINGIntense, competitive gaming in "live to play" mode
PRIZEWINNINGPlaying with the goal of winning money through skills-based games
WINDOW SHOPPING
No specific loyalty or reason to play a game - will play out of boredom
ModerateLow High
OCCASION
CATEGORY INVOLVEMENT
SOLO
GROUP
1
PROACTIVE
AD-
HOC
++ Inactive / moderately active gamers i.e. users who have downloaded games but play at frequency of >2 weeks2
6 distinct contexts define significant part of active Indian gamer's life
MARKET
OVERVIEW
DECODING THE INDIAN GAMER
REALIZING THE OPPORTUNITY
INSPIRATIONS: WHAT IT TAKES TO WIN
EVOLUTION OF THE INDIAN GAMING ECOSYSTEM
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1. includes friends and strangers, both in person and virtually2. was considered a screener and treated outside of the survey scopeSource: BCG Consumer Survey, 2021; N= ~3,200 respondents across 21 cities in India
SEGMENT SHARE(% of total occasions/ respondents belonging to Consumer Segment)
X%VOLUME SHARE (% of total gaming hours belonging to Consumer Segment)
X%VALUE SHARE (% of total spends belonging to Consumer Segment)
X%
TIME CRUSHER
SOCIALIZER
INDULGER
DIEHARD GAMERPRIZEWINNER
WINDOW SHOPPER
ModerateLow High
OCCASION
CATEGORY INVOLVEMENT
15% 20% 14%
9% 8% 5%
28% 22% 13%
19% 19% 12%
12% 14% 40%16% 17% 16%
SOLO
GROUP
1
PROACTIVE
AD-
HOC
++ Inactive / moderately active gamers i.e. users who have downloaded games but play at frequency of >2 weeks2
6 distinct personas of active mobile gamers in India
MARKET
OVERVIEW
DECODING THE INDIAN GAMER
REALIZING THE OPPORTUNITY
INSPIRATIONS: WHAT IT TAKES TO WIN
EVOLUTION OF THE INDIAN GAMING ECOSYSTEM
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MARKET
OVERVIEW
DECODING THE INDIAN GAMER
REALIZING THE OPPORTUNITY
INSPIRATIONS: WHAT IT TAKES TO WIN
EVOLUTION OF THE INDIAN GAMING ECOSYSTEM
Demographics not a key distinguishing feature between segmentsWhile few segments are over / under indexed, trend largely secular
Over-indexed i.e., greater
than 1.2X index to total
Under-indexed i.e., less
than 0.8X index to total
Age
Group
25-40 years
15-24 years
41-60 years
CONSUMER SEGMENTSWINDOW SHOPPER
TIMECRUSHER
INDULGER DIEHARD GAMER
SOCIALIZER PRIZE
WINNER
Gender
53%47% 48%52% 51%49% 29%71% 39%61% 25%75%
41
42
17
49
3120
48
272544
40
17
42
43
1532
50
18
Income
Profession Not a differentiator Student Student
Businessowner,
Self-employed Housewife
39
3031
5-10 lac
3-5 lac
>10 lac 43
332442
36
22
43
2532
36
303443
19
38
%
%
%
%
%
%
%
%
%
%
%
%
Not a differentiator
Source: BCG Consumer Survey, 2021; N= ~3,200 respondents across 21 cities in India
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MARKET
OVERVIEW
DECODING THE INDIAN GAMER
REALIZING THE OPPORTUNITY
INSPIRATIONS: WHAT IT TAKES TO WIN
EVOLUTION OF THE INDIAN GAMING ECOSYSTEM
Source: BCG Consumer Survey, 2021; N= ~3,200 respondents across 21 cities in India
Needs, preferences and gaming habits vary significantly
VARIABLES WINDOW SHOPPER TIME CRUSHER INDULGER DIEHARD GAMER
.
SOCIALIZER PRIZEWINNER
.
Intensity of
game
Preferred genre Board, Casual Adventure,
Casual, Word
Action,
Adventure,
Casual
Action
Adventure, Racing,
Sports, Strategy
Action, BoardCasino, Fantasy
sports,
Group
compositionAloneAlone Virtual with friends
In person / virtual
with friends
Virtual with friends /
strangers
Alone, virtual with
strangers
Key needsAvoid boredom/ stay
up-to-date
Passing time/ Avoid
boredom, Quality time
alone
Self-indulgence
Quick -break
Competition spirit,
feel energized
Bond and connect
Fit in with groupsEarn money
MARKET
OVERVIEW
DECODING THE INDIAN GAMER
REALIZING THE OPPORTUNITY
INSPIRATIONS: WHAT IT TAKES TO WIN
EVOLUTION OF THE INDIAN GAMING ECOSYSTEM
Average hours
per week12 16 14 21 17 19
Type of games
(exemplar;
Non-exhaustive)
LUDO King
Subway
Surfers
Temple run
Subway Surfers
WORD collect
Hitman Sniper
Temple run 2
Subway Surfers
PUBG
Need for Speed
FIFA2020
Clash of clans
Hitman Sniper
PUBG
LUDO King
WINZO
Teen Patti
Junglee
Dream11
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Paid users1
Willingness to pay
VARIABLES WINDOW SHOPPER TIME CRUSHER INDULGER DIEHARD GAMER SOCIALIZER PRIZEWINNER
22% 30% 31% 47% 44% 68%
Average spend
per user ($)
Average spend
per paid user ($)
Average hours
per week 12.5 15.5 14.2 21.2 17.2 19.2
Value share 12% 5% 16% 40%13% 14%
1. % of gamers who pay for mobile games out of all gamers playing at least once in 2 weeksSource: BCG Consumer Survey, 2021; N= ~3,200 respondents across 21 cities in India
Decoding the segments: How they play and payGroup gamers contribute~70% of value pool
High interaction segments are the biggest revenue generators
Over-indexed i.e., greater
than 1.2X index to total
Under-indexed i.e., less
than 0.8X index to total
MARKET
OVERVIEW
DECODING THE INDIAN GAMER
REALIZING THE OPPORTUNITY
INSPIRATIONS: WHAT IT TAKES TO WIN
EVOLUTION OF THE INDIAN GAMING ECOSYSTEM
$1 - 1.5 $2 - 2.5 $1.5 - 2 $2.5 - 3 $3 – 3.5 $10 - 11
$6 - 6.5 $6 - 6.5 $5.5 - 6 $6 – 6.5 $7 – 7.5 $15 -16
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PROFILE
MEDIA PROFILE
PREFERRED MODEL
AGE
GENDER
Example: 'Window Shopper'
KEY INSIGHTS
• Their biggest motivation to play is to pass time or take quick
unplanned breaks
Less than 0.8X
index to total
Greater than 1.2X
index to total
• This segment has highest gender skew towards females as
well as highest share of 41-60 years age group
• This segment focuses the most on "ease of play"
• Weak monetization tilt with lowest share of paying users and
avg. monthly spend across segments
Play games at home mostly alone but
sometimes with friends or family
Play a few games before going to bed
Window Shopper
"I think of games as a means to pass the time when I am bored. I
don't think paying for it is worth it."
TOP INSTALLATION
DRIVERS OPPORTUNITIES TOP PAIN POINTS
Easy to play
Good game reviews
Challenging to play
Recommended by friends
Good game graphics
Play games at ad hoc times during
short breaks during the day
Play games to destress after a tiring
day
CONSUMPTION OCCASIONS
28% 22% 13%
Device issues (battery
life, processing speed)
Too many ads
App issues (slow, crashes
and bugs, disk space)
Made for / by
India games
27%
48%
25%
41 – 60 Years15- 24 Years 25 - 40 Years
Male 47%
Female 53%
Average hours per week 12
% of paid users 22%
Average spend per month $1.25
79
1012Ads (no payment)
IAP+Paid apps
RMG
Source: BCG Consumer Survey, 2021; N= ~3,200 respondents across 21 cities in India
MARKET
OVERVIEW
DECODING THE INDIAN GAMER
REALIZING THE OPPORTUNITY
INSPIRATIONS: WHAT IT TAKES TO WIN
EVOLUTION OF THE INDIAN GAMING ECOSYSTEM
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TOP INSTALLATION
DRIVERS OPPORTUNITIES TOP PAIN POINTS
PROFILE
MEDIA PROFILE
PREFERRED MODEL
PREFERRED COMPANY
PREFERRED PLACE
Example: 'Time Crusher' segment
• Their biggest motivation to play is to de-stress or to spend
some "me-time"
• This segment has the largest share of people preferring to
play alone
• Only segment to spend considerable amount of gaming time
during commute
17
15
68IAP+Paid apps
Ads (no payment)
RMG
Average hours per week 16
% of paid users 30%
Average spend per month $2.2577
23Alone
With others1
9
80
11At home
Commute
Other
Time Crusher
"Gaming helps me relax after a long day of work. It is a good
distraction on the long ride back home from work"
Easy to play
Good game reviews
Challenging to play
Recommended by friends
Good game graphics
Device issues (battery life,
processing speed)
Poor audio and video
App issues (slow, crashes
and bugs, disk space)
Made for / by India
games
Inclined towards games
recommended by
influencers
Play games alone at home or
sometimes online with friends/family
Play a few games before going to bed
Play games during commute or when
waiting for something
Play games to destress after a tiring
day or to connect with friends/family
CONSUMPTION OCCASIONS
Less than 0.8X
index to total
Greater than 1.2X
index to total
19% 19% 12%
KEY INSIGHTS
1. "With others" includes friends and strangers, both in person and virtuallySource: BCG Consumer Survey, 2021; N= ~3,200 respondents across 21 cities in India
MARKET
OVERVIEW
DECODING THE INDIAN GAMER
REALIZING THE OPPORTUNITY
INSPIRATIONS: WHAT IT TAKES TO WIN
EVOLUTION OF THE INDIAN GAMING ECOSYSTEM
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TOP INSTALLATION
DRIVERS OPPORTUNITIES TOP PAIN POINTS
PROFILE
KEY INSIGHTS
Example: 'Indulger' segment
• This segment usually plays games at work or at school or
college
• This segment has the greatest skew towards 15-24 age group
• It is also overrepresented in the lower income groups
Indulger
"I love gaming and use this as a reward to positively help me
focus on other activities. I set goals like 2 hours of studying
before allowing myself to play games for 15 mins"
Easy to play
Good game reviews
Challenging to play
Recommended by friends
Good game graphics
Device issues (battery
life, processing speed)
Poor audio and video
App issues (slow, crashes
and bugs, disk space)
Prefer Esports over
traditional sports
Inclination towards user
generated content
Play games alone at school or work for
a short break
Play to destress or to spend quality
alone time
Mostly play alone but sometimes
online with friends / family
CONSUMPTION OCCASIONS
Games for therapy /
education
MEDIA PROFILE
Average hours per week 14
% of paid users 43%
Average spend per month $1.75
X Axis
PREFERRED MODEL
5430
16Ads (no payment)
IAP+Paid apps
RMG
AGE44% 40%
16%
15- 24 Years 25 - 40 Years 41 – 60 Years
PREFERRED PLACE
17
70
13
Other
At home
At work/school
INCOME Over-represented in low-income
Less than 0.8X
index to total
Greater than 1.2X
index to total
9% 8% 5%
Source: BCG Consumer Survey, 2021; N= ~3,200 respondents across 21 cities in India
MARKET
OVERVIEW
DECODING THE INDIAN GAMER
REALIZING THE OPPORTUNITY
INSPIRATIONS: WHAT IT TAKES TO WIN
EVOLUTION OF THE INDIAN GAMING ECOSYSTEM
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PROFILE
KEY INSIGHTS
MEDIA PROFILE
PREFERRED MODEL
AGE
PREFERRED PLACE
Example: 'Diehard Gamer' segment
• This segment plays to compete
• They spend the highest average time playing games across
all segments
• Popularity and hype behind a game induces them to
download
5234
14Ads (no payment)
IAP+Paid apps
RMG
Average hours per week 21
% of paid users 46%
Average spend per month $2.75
68
32Alone
With others1
Male 71%
Female 29%
Diehard Gamer
"Gaming is the only thing I do in my free time. I always play with
my friends, but also spend some time practicing on my own to
get better and beat my friends"
Popularity / Hype
Challenging to play
Recommended by friends
Good game graphics
Device issues (battery
life, processing speed)
Too many ads
App issues (slow, crashes
and bugs, disk space)
Likely to continue
playing the same game
for 2-3 years
Play to connect with friends and to
compete with them
Play to feel energized
Mostly play online with friends,
sometimes alone
CONSUMPTION OCCASIONS
Games for therapy /
education
Usually play after getting back from
school / work
Less than 0.8X
index to total
Greater than 1.2X
index to total
15% 20% 14%
TOP INSTALLATION
DRIVERS OPPORTUNITIES TOP PAIN POINTS
1. "With others" includes friends and strangers, both in person and virtuallySource: BCG Consumer Survey, 2021; N= ~3,200 respondents across 21 cities in India
MARKET
OVERVIEW
DECODING THE INDIAN GAMER
REALIZING THE OPPORTUNITY
INSPIRATIONS: WHAT IT TAKES TO WIN
EVOLUTION OF THE INDIAN GAMING ECOSYSTEM
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PROFILE
KEY INSIGHTS
MEDIA PROFILE
PREFERRED MODEL
PREFERRED PLACE
PREFERRED COMPANY
Example: 'Socializer' segment
• Their biggest motivation to play is to connect with friends,
family and co-workers
• Equally prefers playing in-person or virtually with friends
• Inviting friends and sharing / keeping track of progress are
the most popular social features
• Among the highest acceptance for RMG model of payments
across all segments
5227
21Ads (no payment)
IAP+Paid apps
RMG
Average hours per week 17
% of paid users 44%
Average spend1 per month $3.25
22
13
65
At Home
Other
Out with friends
15
85
Alone
With others1
Socializer
"I started playing games during lockdown when some friends
suggested we play online for a get together. Since then we
routinely get together online to play games"
Easy to play
Related to favorite sport
Recommended by
friends
Good game graphics
Device issues (battery
life, processing speed)
Complex and difficult
games
Boring, lack of new
content and updates
Likely to continue
playing the same game
for 2-3 years
Play to connect with friends and
to socialize
Play to fit in with the group, not
feel left out
Almost always play with others, rarely
alone
CONSUMPTION OCCASIONS
Games for therapy /
education
Usually play when outside with friends,
and not at home via online gaming
Socializing via games
even post Covid-19
Less than 0.8X
index to total
Greater than 1.2X
index to total
16% 17% 16%
TOP INSTALLATION
DRIVERS OPPORTUNITIES TOP PAIN POINTS
1. "With others" includes friends and strangers, both in person and virtuallySource: BCG Consumer Survey, 2021; N= ~3,200 respondents across 21 cities in India
MARKET
OVERVIEW
DECODING THE INDIAN GAMER
REALIZING THE OPPORTUNITY
INSPIRATIONS: WHAT IT TAKES TO WIN
EVOLUTION OF THE INDIAN GAMING ECOSYSTEM
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PROFILE
KEY INSIGHTS
MEDIA PROFILE
PREFERRED MODEL
INCOME
GENDER
Over-represented in high
income
Average hours per week 19
% of paid users 68%
Average spend per month $10.5
Male 75%
Female 25%
• Their biggest motivation to play is to earn money using their
skill and knowledge
• This segment has the highest % of paying users and highest
avg. spend per month
• This segment also has the highest gender skew towards males
• Mostly discover games through word of mouth or social media
52
24
24
Ads (no payment)
IAP+Paid apps
RMG
Example: 'Prizewinner' segment
PRIZEWINNERS
"I only play games because I can also make some money with
my skill. It's not a lot but the thrill of earning money is fun."
Challenging to play
Good game reviews
Popular with friends
Good game graphics
Recommended by
friends
User generated content
Games recommended by
influencers
Made for / by India
games
Invest in gaming
accessories
Too many ads
Device issues (battery
life, processing speed)
App issues (slow, crashes
and bugs, disk space)
Play games at home with friends and
family
Discovers games from friends and social
media
Plays games that increase chances of
winning money
Will play a few games before going to
bed
CONSUMPTION OCCASIONS
Less than 0.8X
index to total
Greater than 1.2X
index to total
12% 14% 40%
TOP INSTALLATION
DRIVERS OPPORTUNITIES TOP PAIN POINTS
Source: BCG Consumer Survey, 2021; N= ~3,200 respondents across 21 cities in India
MARKET
OVERVIEW
DECODING THE INDIAN GAMER
REALIZING THE OPPORTUNITY
INSPIRATIONS: WHAT IT TAKES TO WIN
EVOLUTION OF THE INDIAN GAMING ECOSYSTEM
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CO
NT
EN
TS
TA
BL
E o
f
EVOLUTION OF
THE INDIAN
GAMING
ECOSYSTEM
DECODING THE
INDIAN GAMER
Who plays where, key
trends shaping the
ecosystem
Insights from consumer
research
INSPIRATIONS:
WHAT IT TAKES
TO WIN
Learnings from
exemplars
MARKET
OVERVIEW
$5B+ market
opportunity at the back
of exponential growth
REALIZING THE
OPPORTUNITY
Action agenda for
companies
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6 imperatives to drive the next wave of growth
MARKET
OVERVIEW
DECODING THE INDIAN GAMER
REALIZING THE OPPORTUNITY
INSPIRATIONS: WHAT IT TAKES TO WIN
EVOLUTION OF THE INDIAN GAMING ECOSYSTEM
ENHANCE
DISCOVERY
AND ADOPTION
IMPROVE
USAGE AND
RETENTION
DRIVE
"ACCEPTABLE"
MONETIZATION
Game design and mechanics are effective in driving organic discovery and growth 2
Casual games, free to play games and influencers are good hooks to onboard first-
time gamers1
Genre diversification effective in increasing engagement and addressing churn3Contextual and interactive social experiences are key in driving adoption and
retention for gamers 4Ads and product placements can be blended seamlessly into the game without
being obtrusive to the gamer5Localized pricing strategies are extremely effective in converting users to payers6
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Example: GetMega leverages influencers whilst Candy Crush rewards users to drive virality in game discovery
ENHANCE DISCOVERY AND ADOPTION
Game design and mechanics are effective
in driving organic discovery and growth
Casual games and influencers are
good hooks for first-time gamers
MARKET
OVERVIEW
DECODING THE INDIAN GAMER
REALIZING THE OPPORTUNITY
INSPIRATIONS: WHAT IT TAKES TO WIN
EVOLUTION OF THE INDIAN GAMING ECOSYSTEM
Social real money gaming start-up that allows gamers
to play casual and card games with their friends via
video chat
A free-to-play casual puzzle game developed and
published by King with a freemium model
WHO THEY ARE
Source: News articles, industry experts, press search
GetMega launched the game using over 200+ YouTube
influencers including comedian & content creator
Tanmay Bhat
Influencers explain how to use the app while launching
over the live stream
The campaign itself reportedly onboarded 1Mn+ users
Introduced a strong referral
program which gave users rewards
for inviting their friends:
Gamers are given the option to
either pay or send requests to their
Facebook friends to progress
within the game
WHAT THEY DID
Get MEGA Candy Crush Saga
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WHAT THEY DID
Example: MPL provides diversified genres and Clash of Clans creates a strong multiplayer bond that boosts retention
Contextual and interactive social
experiences are key in driving adoption
and retention for gamers
Genre diversification effective in
improving usage and retention, an
advantage for gaming platforms
WHO THEY ARE
Source: App Annie data, news articles, industry experts, press search
MARKET
OVERVIEW
DECODING THE INDIAN GAMER
REALIZING THE OPPORTUNITY
INSPIRATIONS: WHAT IT TAKES TO WIN
EVOLUTION OF THE INDIAN GAMING ECOSYSTEM
Mobile e-sports and real money gaming platform that
offers tournament, 1-vs-1 battle and fantasy sport formats
Fantasy themed freemium strategy game that's multi-
player and has a levelized learning curve
MPL has built a genre agnostic platform attracting top developers
who create user-friendly games. This allows them to cater to a
wide variety of gamers
High proportion of paying users (better than industry average) –
offering a game for every person and occasion allows better
retention and monetization
The clan system allows shared experiences (clan wars) which leads to
bonding and learning among gamers, not available to single players
Strategy has been to constantly evolve to offer more user-friendly,
consistent and fun online experiences
Overall high popularity (massive global fan base, esports franchises,
spin off TV show) and high retention (D30 retention is ~25% vs Candy
Crush at 10-12%)
MPL: Mobile Premier League Clash of Clans
IMPROVE USAGE AND RETENTION
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WHAT THEY DID
Example: Free Fire maximizes ad and user spend, Ludo King localizes pricing to optimize monetization for their user bases
Online-only action-adventure battle royale game
developed by Garena
Free-to-play modern adaptation of board game Ludo,
developed by Gametion Technologies
Tailored features that embrace
local cultures, particularly in
emerging countries like India
e.g. Introduction of Hrithik
Roshan-based character and
rewards as an immersive ad for
the movie War within the game
Introduced packs at prices as low as ₹10 to convert
more users to conduct in app purchases
Ad revenue/in app purchase revenue split went from
80:20 to 60:40 after the introduction of new packs
Localized pricing strategies are
extremely effective in converting
users to payers
Bridging the gap between advertisers /
sponsors and consumers help increase
both ad and user spend
WHO THEY ARE
Source: News articles, industry experts, press search
MARKET
OVERVIEW
DECODING THE INDIAN GAMER
REALIZING THE OPPORTUNITY
INSPIRATIONS: WHAT IT TAKES TO WIN
EVOLUTION OF THE INDIAN GAMING ECOSYSTEM
Freefire LUDO King
DRIVE ACCEPTABLE MONETIZATION
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CO
NT
EN
TS
TA
BL
E o
f
EVOLUTION OF
THE INDIAN
GAMING
ECOSYSTEM
DECODING THE
INDIAN GAMER
Who plays where, key
trends shaping the
ecosystem
Insights from consumer
research
MARKET
OVERVIEW
$5B+ market
opportunity at the back
of exponential growth
REALIZING THE
OPPORTUNITY
Action agenda for
companies
INSPIRATIONS:
WHAT IT TAKES
TO WIN
Learnings from
exemplars
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Nazara: The 22-year diversification journey to a blockbuster IPO
MARKET
OVERVIEW
DECODING THE INDIAN GAMER
REALIZING THE OPPORTUNITY
INSPIRATIONS: WHAT IT TAKES TO WIN
EVOLUTION OF THE INDIAN GAMING ECOSYSTEM
Source: Nazara IPO prospectus, news articles
29%9%
14%
17%
89%
57%
34%
33%
20202019
2%
Esports
2018
8%
RMG
Telco Subscription
Freemium
Gamified Learning
8%
1999
Scaled profitably
in India through
telco subscription
business
Founded
Acquired NextWave and
Nodwin to enter Esports
segment
Diversification further
supported through $18Mn
investment from ESL
Gaming
Acquired AbsoluteSports
to expand Esports
business
Diversification further
supported through
$12Mn investment from
SeedFund
Acquired Kiddopia to
enter Gamified Learning
segment
Acquired HalaPlay
to expand Esports
business further
At the back of a stable, profitable biz, Nazara has over the years bet on adjacent opportunities and
leveraged acquisitions in a strategic move towards diversifying to build a network of synergistic companies
IPO, ~$800Mn
market cap
Revenue share %
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Decoding Nazara's strategic choices
Source: Nazara IPO prospectus, news articles, industry experts
MARKET
OVERVIEW
DECODING THE INDIAN GAMER
REALIZING THE OPPORTUNITY
INSPIRATIONS: WHAT IT TAKES TO WIN
EVOLUTION OF THE INDIAN GAMING ECOSYSTEM
Nazara started before smart
phones with simple web-based
games distributed through
telcos
This early segment sustained
Nazara for many years and
still forms ~30% of the revenue
and large part of profit pool
Segment declining in India,
but still profitable in other
emerging markets
Nazara leveraged India
experience to expand into
other emerging economies
with low ARPU
Currently ~25% of Nazara's
revenue comes from the
emerging economies in Africa,
Middle East, and APAC
(outside India)
B2B2C focus GEOGRAPHIC EXPANSION
Nazara is backing on 4 distinct growth areas:
esports, gamified learning, freemium and skill-
based real money gaming
Early mover advantage in esports with Nodwin
securing exclusive licensing agreements with top
IP owners like ESL, Krafton
Kiddopia is their subscription based gamified
learning app aimed at 2-6 year old kids
Freemium segment is a key growth driver. Nazara
is attempting to grow international footprint in
freemium segment through recent acquisitions
(e.g. Publishme)
Skill based real money gaming as macro statutory
situation improves in the market
GROWTH BETS
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MPL: Pioneering the platform concept in India
Source: MPL CEO interview, news articles
THE MPL MODEL
2018 2019 2020 2021
$5Mn
funding from
Sequoia
Capital India
1Mn users
acquired in 1
month
$35.5Mn
funding from
Sequoia Capital
India + Times
25Mn+ users
$90Mn
funding from
SIG ventures
+ others
70Mn+ users
$95Mn
funding from
base
ventures +
others
81Mn+ users
(YTD)
A gaming platform
that aggregates a wide
variety of games from
different developers Players play against each other,
putting up as little as ₹3
The platform keeps
a cut of the pool,
and the winners
take the rest
VS
MARKET
OVERVIEW
DECODING THE INDIAN GAMER
REALIZING THE OPPORTUNITY
INSPIRATIONS: WHAT IT TAKES TO WIN
EVOLUTION OF THE INDIAN GAMING ECOSYSTEM
MONETIZATIONFor continued
engagement -
games must be
easy to learn and
difficult to master,
requiring
continuous
development of
storylines and
iteration
CUSTOMER
ACQUISITIONNo presence on
app stores and
crowded space,
CACs can be high
& acquisition
channels must be
creative
COMPETITION AND
DIFFERENTIATION With RMG attracting
investor interest, MPL
faces more than 30
competitors in the
market. Companies
must develop games
within the premise
keeping them simple to
play
CHEATINGAn issue most online
games face, but the
consequences are
higher for RMG
formats. Anti-fraud
mechanisms
important to
maintain trust of the
user
Overcoming typical challenges for such a model
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Decoding MPL's strategic choices
Source: Company interview, news articles
Levers building liquidity: variety
in games and acquisition..
Personalisation and diverse
content to drive retention
Fuel competition to build
sports, not games …
MARKET
OVERVIEW
DECODING THE INDIAN GAMER
REALIZING THE OPPORTUNITY
INSPIRATIONS: WHAT IT TAKES TO WIN
EVOLUTION OF THE INDIAN GAMING ECOSYSTEM
MPL maximizes in-game engagement
by ensuring players of similar skill levels
lay with each other
MPL has built a large top of the funnel
with its wide variety of free to play
games and marketing
TV campaigns, signing on Virat Kohli
(Indian cricketer), IPL teams and Bigg
Boss partnership helped top of funnel
further
MPL, via ML and optimization
models learns player preferences,
skill levels and recommends games
to improve player skill and their
chances of winning
Fast launches of games to keep the
gamer experience fresh.
Driving retention via building of
community and engagement
features such as the audio chat
Real-time cheating and financial
fraud detection algorithms ensure
that MPL provides a fair gameplay
experience to all players
MPL learns from historic gameplays
and tournaments to design new game
levels and tournament formats
People don't just want to win; they
want a challenge: Highest retention
typically seen in players winning half
of the times vs. all the time
Developing a game is a balance of art and science which brings a lot of risks. We want to fuel competition and be the platform where the largest global gaming competitions happen.
─ Sai Srinivasan, CEO and Co-Founder, MPL
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Dream11: Using fantasy sports to make sports more engaging
The Dream11 modelKey challenges and how
they are being countered
Maintaining engagement through the yearHigh dependency on cricket; seasonal demand peaks with IPL
Variety: Users are primarily sports fans who will engage
with other sports as well in the absence of IPL season
Volume: The platform hosts 20+ matches/day
99%+ users have never won
or lost more than INR10K
net in their lifetime – more
an entertainment expense
Excitement of competing and
underlying love of sports is believed to
be most crucial factor for D11 users
80% of user base
participate in
free
Contests generated through
machine learning algorithms to keep
customizing on what the users are
happy to pay for and compete
Handling competitionVirtually no entry barriers; new entrants every day
Network effects built through strategic choices and first
mover advantage is crucial
Offering variety of choices also increases user stickiness
This format is more event-led vs. simulation of any sport – it merits a case
for fueling engagement to the actual sport vs fueling gaming addiction
Online Fantasy Sports and Sports share a symbiotic relationship in the digital era, it makes fans experience sports in a better and deeply engaged manner─ Harsh Jain, CEO and Co-Founder, Dream11
MARKET
OVERVIEW
DECODING THE INDIAN GAMER
REALIZING THE OPPORTUNITY
INSPIRATIONS: WHAT IT TAKES TO WIN
EVOLUTION OF THE INDIAN GAMING ECOSYSTEM
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MARKET
OVERVIEW
DECODING THE INDIAN GAMER
REALIZING THE OPPORTUNITY
INSPIRATIONS: WHAT IT TAKES TO WIN
EVOLUTION OF THE INDIAN GAMING ECOSYSTEM
Decoding Dream11's strategic choices
More people = larger
contest = large prizes =
more people. Easier to
acquire new users with a
growing user base
The 'daily' nature of
offering increases
engagement and
stickiness resulting in low
churn rates
There's also an
opportunity to cross-sell
other contests helping
them increase their ARPU
Network effect
A platform to display and
leverage superior
knowledge was missing for
sports enthusiasts.
Dream11 moved early to
capitalize on this unmet
need
Dream11 made high risk
early investments in
partnerships before the
space was well defined
e.g., partnership with BCCI
First mover advantage
Transparent and easy to
use product with an open
system on how money is
flowing in and out was
crucial to building trust
Investing behind a positive
social media presence and
associating with the likes
of the NBA or the ICC
further enhanced
credibility
Winning consumer trust
Dream11 took initiative to
define guardrails for this
space when nascent in
India
Created a self-regulated
industry body with other
fantasy sports platforms -
Federation of Indian
Fantasy Sports and
industry adopted a charter
to follow best practices and
code of ethics to protect
consumer and business
interests'
Regulatory leadership
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OVERVIEW
Launched as a fantasy game
platform in 2019
Currently offers three sets of
RMG games for users
Source: GK Leadership interview, Secondary resources
Gameskraft: One of India's fastest growing companies
COMPETITION AND
DIFFERENTIATION
Highly competitive
market with 30+
companies. Entry of global
companies adding to mix
GOVERNMENT
RESTRICTIONS
A few states like Andhra,
Telangana, Kerala have
banned RMG games
USER
RETENTION
Cost effective retention
of customers continues
to be a challenge
KEY CHALLENGES
FOR
GAMESKRAFT
Parent company of
RummyCulture and Gamezy
10+
Mn
registered
base,
1-1.5
Mn
MAUs and
growing
Players compete putting up as little as
₹1 + multiple tourneys types
GK keeps a cut of the pool money (rake
percentage), and winners take the rest
First product of GK. Launched in
October 2017
Real Money rummy platform.
Offers everyday and special
tournaments and table pool
matches
Fantasy cricket – T20, ODI and test matches
Card games like poker, rummy
Casual games like snake, carrom, chess, 8 Ball pool
MARKET
OVERVIEW
DECODING THE INDIAN GAMER
REALIZING THE OPPORTUNITY
INSPIRATIONS: WHAT IT TAKES TO WIN
EVOLUTION OF THE INDIAN GAMING ECOSYSTEM
RummyCulture
Gamezy
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Striving for differentiation
in a competitive market
Focusing on a healthy
CAC and ROI
Leading from the front
on technology
Source: Company interview, news articles
Decoding Gameskraft's strategic choices
Launched industry-first 2nd
Innings and Live Fantasy
features for Gamezy
Guinness World Record for
world's largest online rummy
tournament
Added 10 casual games like
chess, carrom, Quiz, cricket on
top of fantasy and poker to offer
more variety
Poor tech stability and payment
uncertainty major issue in the
industry
GK set up 4-5 level redundant
infrastructure capabilities and
onboarded top-class engineering
team
Introduced under 30 seconds
cash withdrawal for users
Differentiated from competition
by minimizing any tech glitches
MARKET
OVERVIEW
DECODING THE INDIAN GAMER
REALIZING THE OPPORTUNITY
INSPIRATIONS: WHAT IT TAKES TO WIN
EVOLUTION OF THE INDIAN GAMING ECOSYSTEM
CAC and ROI better than
industry averages
No affiliation with 3rd party for
customer acquisition due to poor
retention rates and high cost
Focused on healthy user margin -
optimized spend on CAC to
achieve this
Rake-backs and cash bonuses to
help reactivate players
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About the AuthorsVikash Jain
Managing Director and Senior Partner
BCG New Delhi
Mandeep Kohli
Managing Director and Partner
BCG New Delhi
Wamika Mimani
Principal
BCG Bangalore
Rajan Anandan
Managing Director
Sequoia India
Prachi Pawar
Associate
Sequoia India
Pushpak Kedia
Analyst
Sequoia India
Sudhanshu Mishra
Analyst
Sequoia India
AcknowledgmentsThe authors thank and acknowledge the support provided by Abheek Singhi (Managing Director and Senior Partner, BCG), Arushi Jain (Project Leader,
BCG) Trishla Selarka (Consultant, BCG) and Prithvi Raj Nair (Associate, BCG) in preparing this report.
A special thanks to Jasmin Pithawala and Payal Banerjee for managing the marketing process and to Jamshed Daruwalla, Saroj Singh, Pradeep
Hire, Pavithran NS, Abbasali Asamdi and Seshachalam Marella for their contribution towards design and production of this report.
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