Piracy, High Tariffs Hurt Gaming Industry

High import tariffs, piracy, and lack of adequate broadband connectivity and retail infrastructure were some of the impediments that the Indian gaming industry currently faces.

The gaming industry in India, which is currently pegged at $100 million in comparison to a global estimate of $3 billion, has immense growth potential, according to Microsoft India Country Manager (Entertainment and Devices Division) Mohit Anand.

He felt that the high duties, which translate into higher prices of gaming accessories and consoles, put paid to the growth of the industry which was relatively new to many people in the country.

"Another growth dampener is the lack of broadband connectivity. Though the broadband network was growing, it was not growing at as fast a rate as expected, limiting the access to online gaming experience," he added.

Piracy was another factor that the gaming industry was facing, with pirated versions of popular games being sold at cheap rates.

Moreover, the industry also has to contend with the negative parental perception about gaming. "Parents still connect gaming with violence that hampers a child's development, which is a completely misplaced notion," Anand said.

However, India's young demographic profile automatically translates into a huge chunk of potential gaming consumers in the country.