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Gold Partner
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WinZO is the largest interactive entertainment platform in India. Launched in early 2018, the Company partners with third-party developers to host games on their Android app, where users can enjoy personalized multiplayer gameplay experiences. The platform is available in 12 languages such as English, Hindi, Gujarati, Marathi, Bengali, and Bhojpuri, with over 175 million registered users in India and Brazil. The WinZO platform facilitates over 4 billion micro-transactions per month across a portfolio of 100+ games. WinZO is focused on building an enthusiastic community of gamers and gaming influencers in Tier 2 – 5 cities in India. The Company envisions a future where the WinZO platform can deliver a culturally relevant and enjoyable experience in the Indian gaming ecosystem, monetized through a unique micro-transaction model.
OVERVIEW
India's online gaming industry has undergone a remarkable transformation in recent years, driven by factors such as increased smartphone penetration, affordable data plans, and a growing tech-savvy youth population. The online gaming industry across India was valued at around Rs 13,500 crore in 2022 and is expected to be worth over Rs 23,100 crore by 2025, indicating a compound annual growth of around 19%.
The industry encompasses a wide range of gaming genres, including mobile, PC, console, and esports. While the growth potential is substantial, the sector also faces significant challenges which require strategic solutions for sustainable development.
RECENT CHALLENGES
Issues related to age restrictions, content standards, and loot boxes have raised concerns among policymakers and parents alike. Moreover, the addictive nature of online games has led to concerns about its impact on mental health, especially among younger players. Balancing immersive gameplay with responsible gaming practices and awareness campaigns is a challenge. What is to be noted is that while in-game purchases and microtransactions are crucial revenue streams, these have raised concerns about overspending and the potential for creating a pay-to-win environment. GST Implications: The Goods and Services Tax (GST) issue has affected the industry's growth. The 28% GST rate on the face value has led to complexities and increased operational costs for game developers.
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GST Impact and New Business Models
The recent GST issue has adversely affected the industry's growth trajectory. The 28% GST rate has led to increased operational costs for game developers. This has hindered investment and expansion plans, and some developers have had to adjust pricing strategies to accommodate potential tax implications. To overcome these challenges and explore new business models, the Indian gaming industry can draw inspiration from international markets. For instance, the freemium model, where the base game is free but players can make in-game purchases for cosmetic items or gameplay enhancements, has proven successful globally. Collaborations with international game studios for co-development, leveraging emerging technologies such as blockchain for secure item trading, and exploring subscription-based models that offer premium content are all viable options.
At this year’s India Gaming Summit, the aim is to initiate dialogues which would help in promoting the thought of responsible gaming. Regulatory clarity, responsible gaming practices, and innovative business models can foster sustainable growth and make the industry more resilient in the face of evolving dynamics. Advocating for fair taxation policies and learning from successful models in other markets can further contribute to the industry's progress.
Responsible Gaming
