Himanshu Jain | Founder | Acro Engineering Company
The gaming industry has grown at an exponential rate. Through this growth we have seen billions of dollars in revenue and millions pf people finding new career options through entrepreneurship, management and spoliations. But, when we learn of the term ‘Gaming Companies’, we are unwittingly condensing an array of entities that perform diverse operations which are consequentially critical to the growth of the whole industry.
There is no magic bullet that can hit every mark. There is wide range of companies that have taken up certain responsibilities throughout the industry to insure sustained growth and development of the whole industry.
There are too many working business models for a single article so I’ll have to summarize to a few:
- Gaming hardware companies
Gaming hardware manufacturers are the primary driving force of the gaming industry. These companies are responsible for developing and gaming hardware that is constantly improving.
To put things into perspective, all F1 racecar teams are constantly on the lookout for minor and major changes that would give their driver a better chance of winning. Similarly, Gaming hardware companies are constantly innovating and optimizing hardware to improve the competitive nature of esports and the overall gaming experience.
- Hardware distribution companies
India is a big country with a population more than 130 crores. Event with a market potential of 10% of that is a massive potential for business. This required a robust channel for distribution and sales that can satisfy the demand that this country generates.
A distribution channel adds stability in demand and is one of the most effective modes of lead conversion to sales. Plus every sales and distribution channel has the ability to increase the buying capacity of a region thanks to its ability to hold stock which intern increases market size and stock around the clock stock availability.
Currently, hardware distributors are the backbone of the gaming ecosystem in India and it appears to be that this will not change anytime in the foreseeable future.
- Events
Primarily the growth of gaming has been attributed to its competitive nature and openness in competition i.e. someone sitting in India can compete with or against anyone anywhere in the world. Game designers have also made the most of this by adding a great amount of spectacle in their gameplay to further enhance their experience.
Thanks to this development, competitive multiplayer gaming or esports have become a highly entertaining spectator sport. This means that there is a massive audience that is willing to pay to watch the world’s top gamers play in major competitions.
In India, companies that organize and host gaming events will play a pivotal role in the growth of gaming and esports. They are the ones who have taken it upon themselves to represent the gaming industry to the uninitiated.
- Content creators
As the competitive scene grown in India, there will be a proportional rise in demand of consumable content. This means peripheral content like gaming news, gaming tutorials, game commentary and much more.
Likewise, there has been a substantial growth in the field of ‘Live Streaming’. It’s a live cast of a professional gamer or an entertainer plays games for a live online audience who mostly have the ability to interact with the player through live chats.
For streamers who can actually maintain a consistent audience, there are many ways where they can actually generate a healthy revenue; and as this industry grows, we can see many Indian streamers climbing the ranks as minor gaming celebrities.
- Esports franchise
With the growth of all Indian esports teams, there is potential for a gaming team to branch out into multiple games for better traction; and through all that, build a proper business model that goes beyond just esports. This enables an organization to redefine their flow of revenue.
For an esports franchise, one can look at a diversified revenue model that includes sponsorships, streaming subscriptions, merchandise and many more.
It’s not an easy road ahead for anyone how is looking to do this at this stage but to be honest, it’s more a matter of when than how.
- Gaming Cafés
Out of everything, this will be the most important contributor for the growth of the gaming community and the industry as a whole. As many are aware, gaming hardware is not cheap. Hence, not everyone can afford to have a personal gaming machine for themselves.
Gaming cafés provide critical infrastructure support to aspiring gamers i.e. they provide a more affordable way for people to become competitive gamers at a fraction of the cost of what would be needed to own a computer that is capable of effectively running esports titles.
- Game designers
Game designing needs talent. That is something that this nation is not short of in any way. Mix that with a creative edge, the capability to translate that into effective storytelling and visual a spectacle; you get yourself a game designing team. Although that is a brutal over simplification, this is a mix of talent that India has and this has the attention of many major game development studios. This is why they are looking to acquire Indian game development studios and in some cases open their own branch office.
All being said, the Indian gaming industry has a very bright future ahead. It’s definitely not going to be easy but it will surely be rewarding for those who do this right.
About the Author
Himanshu Jain is the Founder of Acro Engineering Company. He has completed his schooling form the St. Columba’s School and Bachelor’s in B.Com from Delhi University. His enrollment for a global MBA program from prestigious universities and fascination for business management & operations, drove him to built an empire of own.
