India emerges as land of opportunity for game firms
Krafton, Devsisters, and other Korean game companies are exploring new business opportunities in India as they increasingly view the South Asian country as the next frontier, according to the companies and industry officials, Thursday.
They expect India to surpass China as the world’s largest game market, considering growing competitiveness in game development, evolving user preferences, and licensing challenges in the Chinese market.
In this regard, the Indian game market, while still growing, is viewed as an opportunity for Korean companies specializing in mobile games. Indian gamers primarily prefer mobile gaming over console or PC games, making it a promising market for Korean game developers.
“Korean companies are striving to expand their presence in the Indian market, where the number of gamers is increasing, unlike the already competitive Chinese market,” an official in the domestic game industry said on condition of anonymity. “The expansion of the mobile game market seems to be due to the increase in income levels in India, expanded internet access and higher smartphone penetration rates.”
According to a report by market researcher Niko Partners released last year, the number of gamers in India was expected to reach 444 million by 2023, with forecasts predicting that figure to increase to 641.2 million by 2027.
Among the game companies, Krafton is already enjoying significant popularity in the Indian market with a mobile survival shooting game.
Krafton launched BATTLEGROUNDS MOBILE INDIA (BGMI) in July 2021, and the game surpassed 100 million users within just over a year of its release. In almost three years, the number of users playing the game has reached 180 million.
Thanks to the game’s popularity, Krafton achieved sales of 665.9 billion won ($487 million) in the first quarter, setting a record for the three-month period.
Bae Dong-keun, chief financial officer of Krafton, told investors during an earnings conference call, Wednesday, that the company is “focusing on offering stable BGMI service as well as various game publishing and investments in the game sector in India.”
“This year, we aim to publish six new games in India, and we already launched two games, including Bullet Echo India, which was released in April,” the CFO added.
Devsisters is also preparing to enter the Indian market under a partnership with Krafton. The company announced that its flagship game, Cookie Run, will be published by Krafton.
“The Cookie Run IP (intellectual property) of Devsisters, with its easy and intuitive gameplay, is expected to receive a positive response from Indian users,” the Krafton CFO said.
The Korean government also regards India as an important market. During an economic ministers’ meeting chaired by Deputy Prime Minister Choi Sangmok on May 1, a comprehensive plan for promoting the game industry from 2024 to 2028 was announced. This plan includes strengthening the global competitiveness of Korean companies and identifying the Indian market as a key focus area.