Indias wireless-game market will generate annual revenues of $336 million by 2009, according to projections from Delhi-based Nasscom, the India software industry body, and U.S. research firm InStat/MDR.
Short messaging service (SMS) tends to dwarf all comers in the value-added services, accounting for 80 percent of Indias VAS market. Next comes ring tone downloads, followed by games. Alok Shende, an analyst with Frost & Sullivan, reckons a 6 to 8 percent VAS share for games is about the norm. Even in Korea, VAS accounts for just 16 percent of a mobile operators total revenues. Of this, games take up about 10 percent, he says.
Its a nice story so far, but Pyramid analyst Nick Holland points out that there are obstacles to growth: a third of Indian mobile users, for instance, remain cut off from serious gaming for lack of decent handsets like Java-enabled phones that support games.