It’s been a good year to be in the gaming industry, as 2023 has been defined by a multitude of key events and accomplishments for Indian eSports. The ‘Leveling up: State of India Gaming FY’23’ report by Lumikai in collaboration with Google states that India was home to 568 million gamers in FY23 (essentially most of the mobile population of the country, a number expected to reach one billion people by 2025). The country’s gaming market hit $3.1 billion in FY23 and is projected to reach $7.5 billion by FY28, growing at a CAGR of 20%.

Numbers apart, India participated in several global gaming competitions, and even though didn’t come in the top three, Indian e-athletes saw a lot of interest fromadvertisers and brands. Perhaps even more crucially, India saw the return of BGMI, the localized version of the world’s top downloaded PUBG game, which provided a major fillip to domestic engagement.  Internationally, 2023 saw a host of online services ranging from Netflix andYouTubeto Amazon and othere-commerce sitesentering the gaming arena even as platforms increasingly turn to casual gaming to gain eyeballs and traffic.

Animesh Agarwal aka 8Bit Thug, Founder and CEO of 8Bit Creatives and S8UL, notes the recognition on the global stage such as India’s talented contingent competing at the Asian Games 2022 and S8UL achieving unprecedented success at the prestigious international eSports Awards by winning the 'Content Creator of the Year' award elevated the industry's status.

“Moreover, the increasing involvement of non-endemic brands, their entry into the gaming space, and the rise of official tournaments have reshaped the industry's landscape. IQOO SOUL's historic title sponsorship with IQOO highlights the expanding horizons of eSports sponsorships with brands across all domains.  I believe brands investing in the gaming ecosystem stand out as a pivotal factor with the potential to have the most substantial impact on the industry's growth. The influx of non-endemic brands brings both financial support and broader visibility to gaming creators, organizations, tournaments, and other eSports events,” he says.

Public Spirit 

The amendments made to the Information and Technology (IT) Act by the Indian government also played a pivotal role in distinguishing eSports from real money gaming (RMG). This recognition provided legitimacy to the sector, leading to increased sponsorships and investments.

States like Madhya Pradesh, Bihar, and Uttar Pradesh have also taken proactive steps, with initiatives such as the country's first eSports academy and tournaments. Educational institutions have also embraced eSports with the inclusion of eSports in the curriculum.

Sharing his thoughts on these developments, Lokesh Suji, Director of eSports Federation of India (ESFI) and Vice-President of Asian eSports Federation (AESF) commented, “Through the consistent efforts of ESFI, the Indian government officially recognized eSports as a multi-sport event and categorized it under the Ministry of Youth Affairs and Sports in December 2022. Beyond official recognition, infrastructure development is a critical factor for the sustained growth of the eSports industry. The initiatives by our government and numerous states have laid the groundwork for potential financial backing and infrastructure growth in the coming years. eSports now proudly stands alongside the traditional sports of the country, attracting more players and sponsors to the industry.”

Private Enterprise 

Rohit Agarwal, Founder & Director, Alpha Zegus, says content solutions have been the top priority in 2023 for the gaming and lifestyle brand agency. “We started the year with the formation of AZ Playhouse, a 2000sqft top-of-the-line gaming content studio in Mumbai, and created content solutions for more than 150 brands, eSports organizations, and influencers. Our efforts resonated with international production standards which is gradually encouraging more brands to invest in the industry via content. (In numbers, we generated more than 400 pieces of quality content for our partners, and saw a 300% growth in content solutions as compared to 2022).”

“We also expanded our reach by creating unique offline event solutions for our brands and going beyond conventional advertising. With more than 30 events in 2023, we addressed an audience base of over 15,000+ young gamers and generated close to 3x YoY sales for the given category for our brands through a mix of offline innovation and content strategy,” he adds.

Animesh Agarwal echoes this sentiment, noting, “The involvement of brands as advertisers in the gaming industry has seen a significant uptick, reflecting the sector's growing prominence. One notable development is the increasing number of official ESports tournaments and their accessibility to a widespread audience through mainstream streaming and sports broadcasting platforms.”

Multiple events occurred this year and brought in considerable footfall. “We have observed that the gaming community is a vast and varied collection of individuals - some of whom are inclined towards casual gaming, and some of whom are more interested in eSports,” says Ashwin Haryani, Country Head- India, Ampverse.

“Collaborations have been remarkable, signalling gaming's expanding cultural relevance beyond screens. We commenced our journey in India with College Rivals, a pan-India eSports tournament wherein we give college students a chance to compete and play with the top players across the country. Events like this witness significant footfalls both online and on ground. With College Rivals alone, we saw over 70,000 registrations amongst college students and received over 65 million views across all our platforms,” adds Haryani.

BGMI & Beyond 

Tournaments featuring BGMI are now broadcast on platforms like Star Sports and streaming services like JioCinema. This expanded reach provides brands with prominent visibility and a unique avenue to connect with a diverse and engaged audience. Non-endemic brands are recognizing the immense potential of reaching a vast and engaged audience through collaborations, sponsorships, and immersive in-game integrations.

Indeed, Ashwin Suresh, Founder, Loco, notes that “Streaming has also grown beyond BGMI to newer categories such as GTA V. We’re seeing the first signs of a transaction-driven streaming economy with the launch of the Loco VIP program, where fans are paying to have preferential access and experiences on the Loco platform.

He adds, "On the game development side, we're seeing a rise in local game studios, and I’m hopeful that we will see a world-class game coming out of India in the next three years. The evolving dynamics of eSports have led to an increased interest from advertisers, extending beyond conventional, endemic brands. Esports tournaments are generating revenue from advertising, sponsorships, and brand integrations. According to the Dentsu X Loco report, global gaming revenue is estimated to surge to $475 billion by 2027, promising a bright future for monetization within gaming platforms.”