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October 16, 2006

New players enter gaming market

In an article on the gaming market, Businessworld talks about the entry of animation services companies into this sector as well as the predominance of mobile gaming.
The prospects of the gaming industry in India has been bolstered by the entry of animation companies like DQ Entertainment, Animation Bridge, Paradox Studios, ColorChips, Toonz Animation and Ittina Studios.

Why animation companies like Toonz should enter gaming in a big way is not difficult to understand. For one, it is easy for them to tweak existing resources (employees with skills in animation development) to make capital of a new opportunity. For another, the industry is slated to grow at twice the pace of animation, both in India and globally.

...As mobile mania in India keeps moving north (it is the world’s fastest growing telecom market), consumers have shown a surprisingly high propensity for value-added services like game downloads. Riding this momentum, mobile gaming is expected to constitute 70 per cent of the overall gaming market by 2009 (it’s at 53 per cent now), according to Nasscom. Gaming companies have already benefited. For instance, mobile gaming constitutes 60 per cent of DQ Entertainment’s gaming revenues, and 40 per cent of Dhruva’s.
Arun Natarajan is the Founder of Venture Intelligence, which tracks private equity and venture capital in India and Indian-founded companies worldwide. View sample issues of Venture Intelligence India newsletters and reports.