Pixel P&L: Unveiling Indian Gamers' Habits and Mobile Market Surge

Good Morning! It’s Friday, June 7. Today, we unveil our comprehensive report on the viewing and spending habits of Indian gamers. Our coverage also includes a deep dive into India’s burgeoning mobile gaming market, which is poised to surpass China’s within the next five years. Read on for these insights and more.

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In a dimly lit suburban Mumbai apartment, Shounak Sengupta, a 30-year-old project manager, unwinds after work by diving into Helldivers 2 on his gaming rig. Shounak's routine is part of a nationwide revolution where traditional TV is losing ground to the immersive world of gaming. Millions of Indian gamers like Shounak are redefining entertainment, driving the Indian gaming industry to a whopping $3.1 billion market size in 2023. 

In yesterday’s story written by Aditya, our research delves into the demographics and viewing habits of Indian gamers, providing a granular view of the devices they prefer, the platforms that dominate their screen time, and their monthly expenditure on digital content and merchandise. 

YouTube’s dominance in the space is a given, but what surprised us was how Twitch stood out with 32% of respondents mentioning it as their platform of choice for gaming content, ahead of the widely publicized local livestreaming platforms like Rooter and Loco.

As we explore the trends shaping India's gaming and entertainment sectors, we will uncover the key drivers behind this digital revolution. Today’s subscriber exclusive is a must read for anyone looking to get inside the mind (and wallet) of the Indian gamer.

India is set to outpace China in the gaming sector, according to a recent report by Niko Partners. The study, which examines the Asia and MENA (Middle East and North Africa) regions, predicts significant growth in India's gaming population, making it the fastest-growing market within this diverse grouping of 13 countries. These include China, Japan, Korea, and various Southeast Asian and MENA nations.

Currently, the combined markets account for 1.61 billion gamers, over half of the world's total. By 2028, this number is expected to rise to 1.99 billion, with India contributing a staggering 72% of this growth. The country is anticipated to add 277 million gamers over the next five years, bringing its total to 731 million and surpassing China's current gamer count.

Niko Partners also highlighted the region's strong preference for mobile gaming. An overwhelming 93.7% of gamers play on mobile devices, with 35.1% on PC and 4.9% on consoles. By 2028, mobile gamers are projected to number 1.87 billion, with PC and console gamers reaching 606 million and 100 million, respectively.

Asia and MENA gamers collectively represent over half of global spending on mobile and PC games, contributing $58 billion and $20 billion, respectively. Notably, the region saw a 36.2% year-on-year increase in average gaming hours, driven by surges across all platforms.

Mobile Gaming Market Faces Decline in Casual Genres

The latest Q1 2024 Mobile Market Overview from Sensor Tower and data.ai reveals a significant decline in casual mobile game downloads. Arcade, simulation, and lifestyle games each saw over a 10% year-on-year drop. Despite this, RPGs remain the highest revenue-generating genre, bringing in $4.6 billion, though down from $5.3 billion in Q1 last year.

China Approves Valorant Mobile

China’s gaming regulator has approved 15 foreign video games, including the mobile version of Riot Games’ Valorant. Riot, owned by Tencent Holdings, received approval from the National Press and Publication Administration (NPPA), allowing Valorant Mobile to enter the lucrative Chinese market. Under Chinese regulations, foreign games must undergo localization and censorship. Valorant's mobile release is highly anticipated, with Tencent calling the PC version that launched in the country as its “most important game published in 2023.”

Tencent Moves in to Prime Singapore Office Tower

Chinese tech giant Tencent Holdings has moved its employees into CapitaSky, a 29-story tower in Singapore's central business district, consolidating its presence in the city-state. Previously operating from a WeWork office at 30 Raffles Place, Tencent now occupies one floor of the tower, covering approximately half of a 56,000-square-foot flexible working space. This move, confirmed by a company representative to South China Morning Post, signals a potential further consolidation as Tencent may transfer staff from another nearby co-working space at CapitaSpring tower when the current lease expires, according to sources familiar with the matter.

Nvidia Captures 88% of Desktop GPU Market as AMD's Share Falls

In Q1 2024, Nvidia solidified its dominance in the desktop discrete graphics card market, increasing its market share to 88%, according to Jon Peddie Research. Nvidia's shipments rose slightly to 7.66 million units, up from 7.6 million in Q4 2023. Conversely, AMD's market share fell sharply to 12%, with shipments decreasing 41% quarter-over-quarter to 1.04 million units. Despite this quarterly decline, AMD experienced a 39% year-over-year increase in shipments. Intel, struggling to compete with Nvidia and AMD, saw negligible shipments.

The Game Awards now command a larger audience than the Oscars have ever achieved in their storied history. In 1998, the Oscars reached their peak viewership with 55.3 million viewers. Fast forward to 2023, The Game Awards nearly doubled that record, drawing an astounding 103 million viewers. This milestone underscores the shifting landscape of entertainment, where gaming increasingly dominates.

To put this in perspective, the combined viewership of the big four award shows in 2023—the Oscars, Emmys, Grammys, and Tonys—amounted to just 38.6 million. This figure represents slightly more than one-third of The Game Awards' audience.

A significant factor behind The Game Awards' success is the inclusion of game announcements and trailers, which draw a substantial audience. While this attraction undoubtedly boosts viewership, it raises questions about whether the awards themselves hold as much appeal. Nevertheless, the impressive numbers highlight a broader trend: the gaming industry's rise to prominence in the global entertainment sector.