Indian video games industry grew 16% in 2012

The Indian games industry grew to Rs 15 billion ($277m) in 2012, recording a growth of 16% over the previous year, the Indian Media and Entertainment Industry Report 2013 has stated.

The report also estimates that the games industry in India will grow at a 22% CAGR to reach Rs 42 billion ($776m) by 2017.

While console gaming continues to be the largest segment in India, its growth over the last year was 8% as opposed to the estimated 28%. KPMG puts it down to ‘overall sluggishness in the economy impacting both unit sales and attach ratios’.

While the report’s five-year estimates predict that console gaming will continue to be the leading segment, it expects a lower growth year after year as mobile gaming gains prominence in the country.

One reason for the lower predictions for console gaming going forward is the impending discontinuation of the PS2, the only entry-level console in the market. KPMG predicts that the PS3, Xbox 360 and PSP/Vita will only partially offset those lost PS2 sales.

MCVuk.com’s sister site MCV India has the full story.