Over the past two years the Indian cloud gaming market has been abuzz with activity.  As per industry repor­ts, the market revenue for cloud gaming is projected to reach $60.51 million in 2023. Cloud gaming eliminates the need for a dedicated gaming console/personal computer, enabling gamers to play games on almost any portable device, from anywhere in the world. With cloud storage replacing on-site storage, cloud gaming is expected to gain further momentum in the country. Market estimates suggest that between 2023 and 2027, revenue from the cloud ga­ming market will increase at a compound annual growth rate (CAGR) of 50.65 per cent, resulting in a projected market volume of $311.7 million by 2027.

Advantages of cloud gaming

Cloud gaming has brought about a revolutionary change in the gaming industry. It comes with its own set of advantages which makes it preferable to regular gaming methods. Apart from doing away with the need for downloading and installing games, it eliminates the requirement to create space in the disk. It provides gamers with access to a plethora of games, making it an attractive choice for those looking for fresh gaming experiences. It is also much cheaper than traditional gaming, as it removes the requirement to invest in expensive gaming consoles or high performance computers. Th­is is because all the processing and rendering is done on the cloud server, which makes access to the internet the only primary requirement for cloud gaming.

Cloud gaming also provides a more im­­mersive gaming experience. With ga­m­es being based or operated on remote servers, players can enjoy better quality graphics along with faster load times and smoother gameplay. This eliminates the issue of latency or lags. Moreover, games on the cloud server are much easier to update and are usually automated, whi­ch lessens the worries of gamers regarding the manual downloading of updates. The­re are also seamless multiplayer modes in cloud gaming, which allows gamers to join in and play games with their friends or other players online. Gamers don’t ne­ed to buy “physical” copies of the ga­mes, which adds an eco-friendly element to this gaming method.

Meanwhile, cross-platform compatibility is the selling point of cloud gaming, as it allows players to access different gam­es on different devices. A prime example of this is Genshin Impact. Players can play this game on their phones, computers or gaming consoles without facing any issues. Finally, it also reduces the need for hardware upgrades, as high-end graphics cards and processors are extremely expensive.

Growth drivers

Demographic distribution plays a huge role in the country’s cloud gaming market. Based on a survey conducted by KPMG, 75-80 per cent of the respondents between the age groups of 18-24 and 25-36 reported playing a game at least once or thrice a week. Engagement with gaming is perceived to be even higher in the age group of 37-50, with nearly 50 per cent reportedly playing more than four times a week. Battle Royale games, which a person can play online with friends through a strong internet connection, are the most popular genre in India.

Further, access to the internet in the country is quite affordable, with 1 GB of mobile data costing $0.26, as compared to the global average of $8.53. This makes it easier for people to access cloud gaming services at a moderate price. Approxima­te­ly 46 per cent of the population comprises active internet users.

India has the second-highest smartphone user count in the world. In fact, according to a Deloitte analysis, the dema­nd for smartphones in the country is ex­pected to increase at a CAGR of 6 per cent, reaching approximately 400 million smartphones in 2026. The gaming market primarily consists of mobile gamers. Clo­ud gaming is set to take precedence with the availability of budget-friendly smart­phones. This brings forth an opportunity for developers to make more games available on mobiles.

With the roll-out of the 5G network, consumers are looking for more services that are available through the cloud, ins­te­ad of installing multiple applications. Po­w­ered by 5G, the internet promises a glit­ch-free gaming experience that allows for live streaming of real-time gaming via ph­o­nes. Moreover, with rising safety co­n­ce­r­ns across different mobile applications, clo­ud gaming is the safest means to play and combat cyberattacks.

Telcos eyeing opportunities

Amidst the rising uptake of cloud gaming, telecom operators have started eyeing opportunities in this domain. For instance, Reliance Jio plans to leverage its robust 5G infrastructure to capture a share of the cloud gaming market. To this end, Jio­Games has signed a 10-year strategic partnership with Gamestream to roll out its own cloud gaming platform called Jio­Games­­Cloud. The collaboration aims to provide 1.4 billion Indians with unlimited access to cloud gaming. JioGames­Cloud, ai­ms to make console-like gaming easily ac­ces­sible across devices. Under the partn­ership, Gamestream will enrich Jio­Games­­Cloud’s comprehensive library with over 100 cult licences for families and casual gamers alike as well as provide additional games each month.

As of now, JioGamesCloud is available free of cost for a limited period of time on Jio Set-top Box, Android smartphones and select web browsers. According to Kiran Th­o­mas, chief executive officer, Jio Plat­forms Limited, “India is becoming the new hub for video gaming, with the potential to surpass 1 billion gamers given the rapid roll-out of the high speed low latency Jio ‘True 5G’ network across India. Our partnership with Gamestream will provide high quality cloud gaming experience to every Indian.”

Meanwhile, Vodafone Idea Limited (Vi) has announced a partnership with Paris-based CareGame to offer a 5G cloud gaming experience in India. The partnership will enable mobile gaming enthusiasts to enjoy high quality mobile games across popular genres on any Android or iOS sm­artphone device, without any downloads. Avneesh Khosla, chief marketing officer, Vi, says, “The online gaming in­dustry is am­ong the fastest growing entertainment segments in India and with the emergence of 5G it is expected to grow manyfold. Mo­bile gaming is a key agenda for us to drive engagement with our consumers.”

Key challenges

While cloud gaming is witnessing rising uptake, certain bottlenecks remain. First, there is the lack of a regulatory framework. The­re is no centralised legal provision that offers protection to the online gaming sector and addresses the matter of copyright in video games. Second, as the industry is still evolving, talent availability from a gaming perspective is very limited. Third, government institutions rarely provide courses on gaming or game development. Fourth, lack of quality infrastructure creates hindrances in the deployment of cloud gaming. Even though cloud gaming minimises the need for having heavy hardware and consoles, it requires servers for storage. These issues, coupled with lack of high quality gaming studios in the country, are stifling innovations in game development.

The road ahead

Although the Indian gaming industry is faced with drawbacks such as lack of investment and the government’s inability to recognise it as a legitimate industry, the emergence of cloud gaming has immensely improved its future prospects. The inc­reasing use of cloud technology will lead to further innovations in the sector. With a population that is keen on gaming and the rapid proliferation of 5G promising a smoother cloud gaming experience, the uptake of game streaming is set to soar in the coming years.