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Report: Video Game Market Accelerates in India TMCnet Web Editor Although India has captured the world’s attention as a software development hub and more recently as a manufacturer of electronics and communications products, the country is not known as a big market for video games. However, during the past couple of years, interest has been picking up and the growth rate is showing a steeper curve, according to a report by iSuppli Corp. titled Consumer Electronics Industry in India.
The firm expects India’s video-game console market to grow to $125.4 million by 2010, rising at a compound annual growth rate (CAGR) of 75 percent from $13.3 million in 2006.
According to the report, Sony Corp. launched its PlayStation 3 gaming console in India in April at a price of $980 for the 60Gbyte model with an assortment of 12 gaming titles. These titles came from several publishers including Electronic Arts, Sony Computer Entertainment and Namco Bandai. The bundle was distributed in India by Milestone Interactive Software Ltd.
Sony aims to sell 10,000 PlayStation 3 consoles in the Indian market by the end of 2007, despite its steep price tag.
Sony has initially sold 200 PS3 units in India and soon will initiate a campaign to promote the product, according to the report.
As elsewhere in the world, Sony’s PS3 has its hands full competing against Microsoft (News - Alert) Corp.’s Xbox 360, which was launched in India in September 2006. Since then, Microsoft has extensively marketed the video game console in the country.
Sony also launched a gaming title based on cricket, called “Yuvraj Singh International Cricket 2007,” showing its commitment to customizing its titles for Indian tastes.
“The console gaming segment is not very sizeable in India. However, future growth expectations and consumerism are prompting companies to establish themselves in India, said Ashish Thakre, an iSuppli associate analyst.
According to the report, Sony could find it tough to compete against Xbox in the price-sensitive Indian market, as the latter is available for around $600, almost $400 less than PS3. Sony has chosen not to launch a 20Gbyte version in India for now, which would have a much lower price point.
One issue facing the gaming market in India is high duties on gaming consoles, which in India comprise 35% of the product price. This raises game console prices, thus limiting legal game sales and promoting the gray market, according to the report.
For more information please visit: http://www.isuppli.com/catalog/detail.asp?id=8672.
Spencer Chin is a contributing editor for TMCnet. To see more of his articles, please visit his columnist page.
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