Playbook changes for gaming firms as stingy players pay up

Since the pandemic, India has offered its vast market for mobile gaming, with user sign-ups growing rapidly. However, it was not easy for mobile gamers to earn as most would prefer free services on their phones.

According to data sourced from app analytics firm, data.ai (formerly AppAnnie), Indians spent $179.8 million on in-app purchases on gaming apps on the Google Play Store and Apple App Store between November 2021 and October 2022. That marks an increase—albeit a slight one—from the $171.8 million they spent in the year-ago period.

The total number of game downloads for paid games also increased from 5.62 million to 5.83 million during the period.

Another report published last week by gaming-focussed venture firm Lumikai said that of the 507 million mobile gamers in India, 120 million are currently paying for games. The market added nearly 2 million paying users in FY22, while average revenue per paying user grew 11% to $20 per year, the report said.

In short, not only has the amount of paid gamers increased, but so has the amount they get paid.

The Real Money Gaming (RMG) segment contributed 57% of gaming revenue in FY22, but the good news for game developers is that revenue from in-app purchases is also expected to post 34% compounded annual growth. growth rate (CAGR) over the five years through FY27.

RMG has long been seen as the only real revenue generator in the Indian mobile gaming market. The Lumikai report states that this segment is expected to grow by 25%.

there is a context Cricket Strategy game Hitwicket. government winners self reliant india Innovate Challenge in 2020, its conversion rate (the number of gamers who pay after downloading the game) was 1% until last year.

“This year, we are seeing the conversion rate going up to 4%. This is a huge jump in people’s propensity to pay. In mature markets like US, UK and AustraliaThe conversion rate is 7-8%. “The gap between India and Tier 1 gaming markets is closing,” said Kirti Singh, Co-Founder, Hitwicket. Learning curve among gamers.

To be sure, India still lags far behind developed markets like the US and EU in terms of paid content for sports. Rajan Navani, founder and chief executive of Indian game publisher Jetsynthesis, said players in more mature markets have been paying for games for decades. “While we have grown tremendously through the pandemic, there is still a difference in magnitude. However, the catch-up potential of Indian gamers is huge,” said Navani.

Justin Shriram Keeling, Lumikai Founding General Partner, said the new ability to monetize gamers has inspired gaming companies to build new products to capitalize on this growing market.