Stadia in future will be online…

The skill-based mobile and online gaming industry is set to grow rapidly. A conducive policy will regulate this sunrise industry and streamline its growth. Biren Ghose, Chairman, CII National Animation Games and Visual Effects Committee, and President, ABAI, throws light on the prospects this industry holds

Is mobile gaming set to emerge as a new dimension of e-sports?

The sharpest growth worldwide in media and entertainment will happen in e-sports. These are games played electronically between individuals or teams. They test speed, reaction and other elements. There are around 17-20 million e-sports users in India. Globally, there are over 90 million on engagement platforms where they compete. The global revenue from gaming this year is around USD 160 billion. India has a small share at 0.5-0.7 per cent.
I see a massive increase in what gaming will bring as a percentage of the total media and entertainment pie in India. It could increase to around 8-10 per cent of the total revenue, employing around 50,000 more people in the coming 3-5 years.

Can Karnataka be a leader in this space?

Karnataka has the potential and infrastructure to capitalise on the growth in mobile games. I see 10,000 people getting trained and employed in this ecosystem. In today’s competitive landscape we cannot ignore the opportunity that’s before the State.

What regulatory model should Karnataka adopt?

I am working on a project with my peers for a policy with higher priority for digital games and sports. It must include the vision to enhance skilled development and employability, ensure guidelines to distinguish skill-based games from gambling and leverage gamification in other sectors.

With 71 start-ups in this sector in Karnataka and 400 other start-ups, this is a content revolution becoming an economic force. Global investors see this as investment opportunities. With a projected 42 per cent CAGR over the next few years it’s going to be a race for supremacy among domestic and global players who will build these ‘stadia of the future’. India is looking at a revenue of approximately Rs 19,000 crores this year, expected to double by 2024-25. The current tax revenue is Rs 10,000 crores. Why should we allow some other country to earn that revenue? All we need to garner it is conducive policy.

Regulation is necessary to ensure fair play and keep this industry ‘clean’. There are State and national bodies that can play an advisory and watch dog role. Karnataka held a meet of all stakeholders and will now hold Bengaluru GAFX which is rapidly becoming a lighthouse event for this industry. It showcases the State’s support for technology-enabled industries.
Online games could generate Rs 40,000 crores in the next 4-5 years. Karnataka through its AVGC policy has already taken the lead in animation and VFX. Online gaming is the next bastion.

Should all stakeholders recognise the concept of e-sports? Will a comprehensive policy help?

I have been advocating this to the central and state governments, and particularly to the government of Karnataka where I actively participate in vision and policy formulation for animation, visual effects and games. We need to use data to build bridges, not walls. We should encourage digital technology for the benefit of the citizens. A sunrise technology has a bright future as well as intimidating applications. Software has unethical hackers and biotech can create unethical genetic outcomes. We should understand and create safeguards to advance new technologies to capitalise on their advantages rather than restrict the potential of this media
revolution.

The well-being that conventional sports offer is known. What good does mobile gaming do?

Mobile gaming offers the same cognitive benefits and opportunities that real world sports do to all those who are unable to go out and play these for any reason. This could be due to physical, financial or other factors. My mother-in-law, who is 89, besides playing virtual bridge also spends a lot of time on her i-Pad playing games that stimulate her brain. The mind needs agility as much as the body needs exercise to keep healthy.

Does the gaming industry hold prospects as a large employer and revenue centre?

Gaming is not just about a developer creating an online site and people participating in games. It has a massive collateral system that develops around it. There are publishers creating products, service platforms that help creators host their products, and they work out a method to share revenues. Publishers work with several developers involved in the coding, art and testing of such products. This group of developers, publishers and platforms then drive revenue through distribution channels which is significantly mobile and telecom services. The business model also includes advertising, and uses payment gateways and other transaction mechanisms. Therefore, the success of this industry will actually drive indirect revenues, employment and development of an ecosystem. In 2019, about 5.60 billion mobile game Apps were downloaded in India and we are still to measure the collateral benefits that this brought. We grew by four times in our user base over just the past three years. This business can grow to about USD two billion by 2025.