Gaming sector faces talent crunch: IGDC
The $3.1 billion gaming market in India is facing three major challenges, besides the Centre’s clarification in August this year to cover online gaming under gambling leading it to attract 28 per cent GST, one being skilled talent, followed by consumer behaviour and the funding winter. However, the industry is confident to grow past these challenges over a period, said IGDC official. The 15th edition of India Game Developer Conference (IGDC) took off in Hyderabad on Thursday. This year, more than 80 participants from Hyderabad including Hitwicket, Athirath, Street Lamp, were part of the three-day gaming developer conference.
The conference kicked off with the launch of the ‘Lumikai State of India Gaming report FY23.’ According to the report, India’s gaming market is projected to grow at a CAGR of 20 per cent to reach $7.5 billion in FY28. The gaming market hit $3.1 billion in FY23. The growth is expected to be driven in in-app purchases and ad revenues in casual and midcore games. Speaking on the challenges faced by the gaming sector also known as the sunrise industry, Rajesh Rao, Chairperson, IGDC said: ‘We have to work with colleges, and universities to get the quality of the courses up. Industry experts are also talking about skill development. We do not have enough talent in programming, design. Hence, colleges and universities introducing courses related to the areas of developing a game has to increase.’
According to Rao, besides finding the right skilled talent, the other challenge that cannot be fast forwarded is consumer behaviour. “The biggest challenge that the industry is facing right now is talent. Way back in late 90’s the situation was not good, as against now, people entering this industry have atleast played games for six to seven years. Five years from now, people will have more experience in playing games. We cannot fast forward this process hence, over a period of time the industry will have people with that experience. Another challenge is consumer behaviour. However, with smartphone and internet penetration consumption of gaming content is seeing a steady growth,” Rao pointed out.
According to the report, funding in the Indian gaming sector is down by 75 per cent year-on-year in 2023, mirroring the global funding decrease of 79 per cent. In 2018, the gaming sector here received $156 million, which went up to $1,744 million in 2021, but witnessed a sharp fall in 2022 with only $567 million invested into the sector.
On this investor sentiment, Rao said that investment has fallen for gaming sector as it has fallen for all other sectors. “Due to macro forces like inflation, interest rates, money has become more expensive. Drop in funding is witnessed for all companies not just gaming companies. However, Venture Capitalists who are focused on games and looking at India are still quite bullish. Good ideas and good companies are getting funded.”