Online Gaming: A Billion Dollar Industry.
Amrita Tiwari – Research Associate, her interest lies in social dimensions of the digital ecosystem.
Episode Summary: Online gaming has taken the world by storm due to rapid digitilisation, even in remote areas! During the pandemic, the world of online gaming evolved exponentially and is continuing to do so. Listen to this podcast to find out how ONLINE GAMING has become a Billion Dollar Industry!
Transcript: Host: Welcome to #UnwiringTech. This podcast delves deep into the fascinating and ever-evolving world of digital ecosystems. Join us as we navigate the intricate social dimensions that shape these interconnected online realms. Today we are going to discuss how online-gaming has become a billion-dollar industry and is impacting the user-base extensively.
Host: In the ever-evolving landscape of home entertainment, one phenomenon has truly dominated the scene in recent years – online gaming. From its humble beginnings to becoming a global powerhouse, the popularity of online gaming has surged to unprecedented heights. In fact, it’s not just a pastime; it’s a thriving industry worth over billions of dollars! But what’s more intriguing is how the gaming industry’s success has paved the way for other emerging tech markets. Let’s explore how this phenomenon unfolded.
Host: The last few years have witnessed an explosive growth within the gaming industry. With Gen Z embracing the virtual world, gaming has seen a staggering 7% year-on-year increase since 2020. The COVID-19 pandemic played a significant role in this surge, as rapid digitization and mobile applications provided a lifeline of entertainment to billions during isolation. Mobile gaming, in particular, became the go-to choice for
Host: Now, let’s shift our focus to a country that’s been experiencing a gaming revolution of its own – India. The pandemic not only accelerated the growth of the gaming market but also changed the way Indians perceive and engage with games. Mobile penetration, coupled with the allure of video games easily accessible on smartphones, led to a significant shift in gaming habits. The online gaming industry in India has been growing exponentially in recent years, mainly driven by the adoption of online gaming, especially mobile gaming. According to a report by KPMG, India had 433 million online gaming users in FY 2021, resulting in revenues of Rs 136 billion ($1.6 bn). The report also states that by 2025, the number of users is anticipated to increase to 657 million, with revenues of Rs 290 billion ($3.5 bn).
Host: As we venture deeper into the 5G era, mobile gaming emerges as a pivotal segment that’s poised to shape the future of gaming for generations to come. Yet, like any powerful force, gaming comes with its share of challenges. The rise of online gaming addiction, especially among the youth, is a growing concern. We’ve witnessed incidents of violence, suicides, and even restrictions placed on certain games due to their impact. Moreover, issues like cheating, privacy violations, and bullying have raised valid concerns about the unintended consequences of sharing personal information in the virtual world.
While on one hand it is a unique opportunity for innovation, economy and startups, its negative impact on society cannot be ignored. Online gaming addiction, especially among the youth, is a growing problem. Many research shows that excessive gaming has a profound effect on children. Fraud, privacy violations, and issues like bullying, violence, use of weapons and its addictive features are a matter of concern during online gaming.
Due to these, the government recently took some tough steps on online gaming and imposed a ban on some games and also imposed GST @ 28%.
Host: Beyond the controversies, gaming has become an integral part of modern entertainment. In India alone, a staggering 420 million online gamers spend an average of 8.5 hours per week engrossed in various genres. This surge in gaming has not only contributed billions to the economy but has also turned the country into a hub for advertisements and branding. Even more fascinating, Esports competitors and streamers are expanding their influence from urban centers to the farthest reaches of villages.
Host: So, is gaming a blessing or a curse? Like any powerful tool, it’s a double-edged sword. For decades, gaming has been a source of exhilaration, stress relief, and even a boost to cognitive abilities. Research studies have shown that playing games can enhance intelligence, concentration, creativity, memory, and teamwork skills. However, it’s crucial to strike a balance and address the challenges that come hand-in-hand with this captivating form of entertainment.
Host: And there you have it, a glimpse into the captivating world of online gaming. From its humble origins to its explosive growth, and the societal impact it brings – the gaming industry is a force to be reckoned with. As we navigate the ever-evolving landscape of home entertainment, let’s remember to embrace the positives, address the challenges, and continue to explore the limitless possibilities that gaming has to offer.
Host: Thank you for listening to #UnwiringTech. Stay tuned for more episodes focusing around the latest happenings of the digital world.