Krafton, the Korean gaming developer behind Battlegrounds Mobile India (BGMI), has announced plans to increase investment in the country.
The company plans to invest $50 million a year after India’s government gave a boost to esports as part of the Promotion & Regulation of Online Gaming Bill.
The bill, which was passed a few weeks ago, aims to promote esports with training centres and investment in game development.
Sean Sohn, Krafton’s head of operations in India, said the company is seeking to expand in India, as growth slows in China and the US.
Krafton’s investment could be a result of the real money gaming ban. Image Credit: Precondo Ca/Unsplash
India: A Tough Battleground
BGMI has been a huge hit in the country, but Indian gamers are not as receptive to new releases as gamers in other markets.
In an interview with the Financial Times, Sohn said, “India is a tough market. Users are not so receptive to new games and are reluctant to spend much on games. But they show strong loyalty once they get to enjoy a game.”
Battlegrounds has an estimated 200 million users in India, generating annual global sales of around $7 billion.
Krafton is also hopeful it will have an edge in the expanded esports environment due to less competition from Chinese developers. Due to political tensions between the two countries, China’s game makers are banned from India.
Krafton has already been expanding its portfolio. The company acquired India’s cricket game developer, Nautilus Mobile, in March for $14 million, as it looks to attract new gamers.
Investment Can Increase Krafton Hosted Events
In an interview with Esports.net in June, Karan Mahesh Pathak, Associate Director of Esports at Krafton, stated that the company aims to host more events in the country; however, securing venues has been a challenge.
The government’s promise to invest in the industry should make that easier. The bill included plans to establish esports training academies, invest in technology to develop new games, and integrate esports into India’s national sporting institutions.
Real Money Gaming Companies React to Ban
While expanding esports in the country, India’s new legislation strictly prohibits all forms of real-money gaming (RMG).
In light of the restrictions placed on RMG, gaming companies have ended pay-to-play versions of games. In particular, fantasy sports operators have seen a significant impact on their businesses.
Mobile Premier League (MPL), one of the leading fantasy sports platforms in the country, announced it would lay off 60% of workers.
Meanwhile, Dream11 ended its $41 million-a-year sponsorship of India’s national cricket team. The fantasy sports operator said the deal was untenable under the new regulations.
A23, which allows players to gamble on online poker and rummy, has challenged the legality of the new regulations. It filed the first writ petition in the Karnataka High Court against the prohibition.
Krafton hopes that the limitations of RMG will lead players to discover new games. If the government delivers on its plans to expand esports, it could bring in a new age of gaming in the world’s most populous country.