The recent ban on the favored mobile game PUBG Mobile has hit the Indian gaming community hard, but not the maximum amount because the game’s developer Tencent. consistent with a report, the Chinese tech giant has lost $34 billion in terms of market price , just each day after the ban on 118 Chinese apps in India. aside from PUBG Mobile, Arena of Valor, Chess Run, and Ludo World have also been blocked, all of which have an association with Tencent and are being considered for the company’s dip within the market.
PUBG Mobile has been Tencent’s biggest moneymaker in India among all the games that it offers, raking around 30 million daily active users. India is additionally the leading country when it involves the entire number of active users across the world , making it the foremost important marketplace for Tencent. Ever since the announcement of the ban, Tencent’s stocks are dipping continuously going from HK $545 to HK $519. Recently Tencent faced an enormous blow after the company’s WeChat app was banned last month within the US on grounds of national security.
PUBG Mobile has been faraway from the Google Play Store or the Apple App Store. While the sport remains active and available for users who have the sport installed on their phones, it won’t be long before ISPs are ordered to completely block the sport . this is often not the primary time we are hearing a few ban on the sport as there are instances within the past where certain cities considered banning PUBG Mobile because it was affecting the mind of the younger audience. there have been several cases where students were so hooked in to the sport that it led to poor concentration in studies, abuse, stealing, and in some cases suicide.
India has severely dented future earnings potential of Chinese apps by banning them from the country, which is currently the second largest apps download market in the world. Interestingly, Chinese apps will not be as concerned about the immediate revenue loss. In spite of large user base, revenue from India vis-a-vis other large gaming countries like US, China, Japan or South Korea was always minuscule.
India does not even figure among the top 10 revenue generators for these apps. In fact, countries like Canada, Italy and Spain which have users between 30-50 million generate upwards of $2,600 million. But the future potential is lost. "India is one of the fastest growing gaming markets in the world. Today we might impact their revenues to the extent of 5-10% at best. However, since future growth is to come from India, not having a presence will impact them," says Rajan Navani, Vice Chairman & Managing Director, JetSynthesys.
TikTok, the worst impacted app in India, had seen 2.1 billion downloads between Android and iOS, of which 30.3 per cent or 611 million were in India-highest in the world. In the last fiscal, Bytedance, which owns TikTok, was making quarterly revenue of Rs 100 - 150 crore in India, and was looking at a target of Rs 1,000 crore.
According to a recent Bloomberg report, Softbank is said to be looking at a consortium bid for ByteDance's India entity, whose entire operations worldwide is said to be valued at over $20 billion dollars. Meanwhile, the ban on Chinese apps has brought the spotlight on Indian app makers - industry insiders believe, it's the best opportunity for them to shine. The ban on Chinese also saw a slew of lookalike Indian apps spring up such as Roposo, Sharechat, Chingari.
Roland Landers, CEO, All India Gaming Federation, says the ban will not only safeguard interests of Indian mobile and internet users but also offer a great opportunity for indigenous homegrown game development studios. "We are confident that games like Rogue Heist, a multi-player online shooter game, designed and developed entirely in India and many other similar ones will fill the gap," he says.
Today, India has around 400 gaming start-ups. Out of the 300 plus million online gamers in India, an estimated 85 per cent are mobile gamers. Indian apps can not just gain market share by drawing these gamers, but also see an increase in their valuations. But the gaming industry is nascent in the country, and even though opportunities exist, non-Chinese global companies can be tough competition.
"The opportunity is there, but we have to see whether Indian, Japanese, European or American companies will capture it," says Pankaj Karna, Managing Director - Maple Capital Advisors. He believes that investors will look at quality and user retention to bump up valuations. But for e-sporting companies like Indian Gaming League (IGL), which during the lockdown saw over 1,000% growth in terms of the total views and watch time on its YouTube channel which broadcasts their daily PUBG Mobile and Call of Duty Mobile
India does not even figure among the top 10 revenue generators for these apps. In fact, countries like Canada, Italy and Spain which have users between 30-50 million generate upwards of $2,600 million. But the future potential is lost. "India is one of the fastest growing gaming markets in the world. Today we might impact their revenues to the extent of 5-10% at best. However, since future growth is to come from India, not having a presence will impact them," says Rajan Navani, Vice Chairman & Managing Director, JetSynthesys.
TikTok, the worst impacted app in India, had seen 2.1 billion downloads between Android and iOS, of which 30.3 per cent or 611 million were in India-highest in the world. In the last fiscal, Bytedance, which owns TikTok, was making quarterly revenue of Rs 100 - 150 crore in India, and was looking at a target of Rs 1,000 crore.
According to a recent Bloomberg report, Softbank is said to be looking at a consortium bid for ByteDance's India entity, whose entire operations worldwide is said to be valued at over $20 billion dollars. Meanwhile, the ban on Chinese apps has brought the spotlight on Indian app makers - industry insiders believe, it's the best opportunity for them to shine. The ban on Chinese also saw a slew of lookalike Indian apps spring up such as Roposo, Sharechat, Chingari.
Roland Landers, CEO, All India Gaming Federation, says the ban will not only safeguard interests of Indian mobile and internet users but also offer a great opportunity for indigenous homegrown game development studios. "We are confident that games like Rogue Heist, a multi-player online shooter game, designed and developed entirely in India and many other similar ones will fill the gap," he says.
Today, India has around 400 gaming start-ups. Out of the 300 plus million online gamers in India, an estimated 85 per cent are mobile gamers. Indian apps can not just gain market share by drawing these gamers, but also see an increase in their valuations. But the gaming industry is nascent in the country, and even though opportunities exist, non-Chinese global companies can be tough competition.
"The opportunity is there, but we have to see whether Indian, Japanese, European or American companies will capture it," says Pankaj Karna, Managing Director - Maple Capital Advisors. He believes that investors will look at quality and user retention to bump up valuations. But for e-sporting companies like Indian Gaming League (IGL), which during the lockdown saw over 1,000% growth in terms of the total views and watch time on its YouTube channel which broadcasts their daily PUBG Mobile and Call of Duty Mobile
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