Charanjot
Singh plays football professionally, only he doesn't wear a pair of boots and
run around on a pitch.
The 20-year-old instead
earns a living playing football computer games, including the tournaments
organized by the electronic sports (esports) division of the football world
governing body Fifa.
Back in June, Mr Singh represented India in Fifa Esports' Nations Cup 2023. This was held in Saudi Arabia, and Mr Singh says he came 64th. According to one report, this earned him $10,000 (£8,000).
"I have no idea if I'm good or not, I just enjoy playing," he says.
Mr Singh, who is from the
city of Chandigarh, in northern India, is indicative of a country that
increasingly really likes computer games.
Last year, there were 421 million people in India who played online games, according to a report in April by accountancy group Ernst & Young. This was up from 300 million in 2019, and the number is expected to rise to 442 million this year.
The study also said that
the combined revenues of online games in India were 135bn Indian rupees
($1.6bn; £1.30bn) in 2022, 22% higher than in 2021. And it predicted that
annual growth will continue around this level.
At the same time, a
separate report said that the number of Indians participating in organized
esports competitions had soared from 150,000 in 2021, to 600,000 in 2022.
This big growth is said to
have been fuelled by the coronavirus lockdowns giving people more leisure time,
and the increased availability of affordable smartphones and cheap internet
data packs - 90% of Indian gamers use their phones rather than a computer or
games console.
While only an estimated 20%
of online games played in India are currently made by Indian gaming firms, the
homegrown sector has been growing quickly in recent years. And there are now
more than 900 Indian gaming start-ups.
Yet while all had been
looking good, shockwaves were sent through the industry back in July when the
government announced that it was inducing a new 28% tax on online gaming.
Such was the vagueness of the wording that the fear was that it could affect
all Indian gaming firms.
However, New Delhi
subsequently clarified that the tax, which starts next month, will only apply
to so-called "iGaming". These are gambling sites, such as online
casinos; or "real money" games in which the players have to pay to
enter, and then compete to win prize money, such as some fantasy cricket
competitions.
The tax does not apply to
esports competitions, which are classified as a genuine sport. And while such
competitions offer prize funds, you do not have to pay to take part. The prize
money instead is covered by sponsorship and people paying to watch the games.
Nor does the new tax affect
casual gaming, such as games in which the user may have to pay to participate,
or then make in-app purchases to be able to continue. This is because these
games do not offer any prize funds.
Nor does the new tax affect
casual gaming, such as games in which the user may have to pay to participate,
or then make in-app purchases to be able to continue. This is because these
games do not offer any prize funds.
"This GST is neither
applicable nor will it have any impact on the video gaming industry or the
esports industry," says Lokesh Suji, director of the Esports Federation of
India.
"Esports has been
officially recognized as a sport by the government, which finally distinguishes
it from iGaming. It will be taxed in the way that it has always been."
Mr Suji adds: "We
think the prospects of esports are very bright, especially in the years ahead
where we're expecting more corporate support for our young players. And the
primary objective of 400 million Indian video gamers, and three billion gamers
worldwide, is purely entertainment, and not financial gains or making
money."
As for the firms that are
affected by the new tax, in terms of collective revenues, they are currently
three times larger than the esports and casual gaming sectors. Revenues for
iGaming totaled 104bn Indian rupees last year,
compared with a combined 31bn rupees for esports and casual gaming.
Deepak Manepalli is the chief
executive of Open Play, an Indian gaming firm that will be affected by the new
tax - his games charge users to play them, in return for offering prize money.
"The change will
render many businesses unviable, and potentially lead to players with cash reserves
or a healthy, profitable track record, leading the show. Companies will have to
rethink the unit economics and business models to ensure that player retention
and profitability are still achievable in this new normal."
Meanwhile, some analysts
say that haphazard regulation remains a problem, as does the fact that rules
can differ across Indian states.
Anusha Ganapathi is a
Chennai-based data analyst, whose own passion for gaming began as a teenager.
She says that India's homegrown game producers need to make more games that
appeal to women and families, rather than more multiplayer, shooting games.
Currently, women represent 40% of India's gamers.
"Creating a game is an
art, like making a movie," she says. Ms Ganapathi, who reviews games for
the New Indian Express newspaper, adds: "What the industry really needs
now are more nuanced games, with rich storylines that would appeal to
everyone."
That's exactly what Mourvi
Sharma is trying to do. She is a co-founder of Indian games developer
BigFatPhoenix. Out of their 12 employees, eight are women.
The team is currently
designing what it says are more thoughtful games for children aged eight to 12.
"We create a world with diverse characters, using classic adventure
storytelling," says Ms Sharma.
"At every twist and turn in the plot the player must make choices, but there's no right or wrong answer. The outcome often allows children to think about the consequences of their choices."
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