Subscription-Based Gaming Models: Are Indian Gamers Ready for Game Passes?

The gaming community is a diverse group, and this diversity is defined by distinct gaming preferences. For an expert in rummy rules, gaming may simply be a few sessions of rummy during spare time. For others, gaming could be more similar to an OTT experience, browsing all over the platform to find a game that appeals to them. For the latter, the subscription-based gaming model makes a lot of sense.

Your Amazon Prime, Netflix and Hotstar subscription opens up a wide window of entertainment. Similarly, a subscription-based game pass opens up a diverse library of online game titles. For price-sensitive Indian gamers, parting with a sum of money for entertainment is a very calculated decision. Therefore, the question begging to be asked is, will game passes be the proverbial hotcakes among Indian gamers?

The Emergence of Game Passes in India

According to a survey conducted among more than 24,000 gamers in India during the year 2023, multiple video game subscriptions are active among them. It seems that an established OTT presence may have influenced the public response to game passes. 61% of respondents are customers of the Amazon Prime Gaming subscription, while 48% are using Netflix Gaming passes. Google Play Pass has been purchased by 54% of respondents, while console gaming giants PlayStation, Xbox and EA had 42%, 36% and 30% takers respectively.

Game passes have been around for a few years now. Back in March 2019, Google announced the launch of its gaming platform, Stadia. Announced at the Game Developers Conference, San Francisco, a Stadia subscription was made available for a monthly fee of $9.99. This was before the launch of Google Play Pass. The same year, Apple launched its Apple Arcade. With over 100 iOS games, subscribers could enjoy gaming free from ads and in-app purchases. This was also the year EA Play appeared on PlayStation 4 as a subscription service. It has been a part of Xbox One since 2014.

Apart from the big studios and OTT platforms, many other gaming subscription options are opening up in India every day. For instance, Vodafone Idea launched its Cloud Play, available at a monthly subscription of ₹104 only.

Will Indian Gamers Let It Pass?

There is a massive pool of casual gamers in India. Real money games are also popular, thanks to the familiarity of games like rummy and Teen Patti. While some download rummy apps like RummyPrime to finetune their skill and knowledge of rummy rules, others are busy improving their fantasy sports league performance. In other words, Indian gamers have the choice of sticking to a few favourite games or paying a fee for hundreds or even thousands of games.

In a recent survey, 51% of casual gamers admitted that they have ventured into other genres during the year. 18% of the respondents also opened up to paying for games, from their earlier preference for free gaming. 18% conversion is not encouraging in percentage, but results in high volume due to the large number of gamers in India.

When it comes to payment behaviour, 67% of responding gamers admitted to having spent on in-app purchases, while 58% of them spent on real money gaming. Subscription spending is the third most popular payment among gamers in India, at 57%. Even on a broader scale, if we see the spending pattern across gaming and all other new media platforms, it is in-app purchases that are the frontrunner. Subscription payments are the second most common expense among consumers, followed by pay-per-use purchases.

Apart from the fact that you get access to a massive game title library, a key attraction of the subscription model is the absence of advertisement breaks. However, when 47% of the respondents in a survey say that they don’t mind ads on their gaming or media platforms, it doesn’t serve as encouraging news for the subscription model-based platforms.

Growing Beyond Challenges

Early signs for subscription-based gaming in India have been mixed at best. First, there is a pre-existing dominance of free-to-play games in India. Much of the industry’s success is attributed to it. Secondly, a paid service with a highly immersive gaming experience also calls for high-end gaming devices. This may be a handicap for gamers, 90% of whom prefer their smartphones to play. Lastly, there is a perennial concern about price sensitivity among Indians.

However, India is a rapidly growing gaming market, with room for all genres and revenue models. Besides, the subscription model is being implemented across many industries. So, gamers are expected to soften up to it more and more.

After a revenue of $760 million in 2022, the subscription-based gaming model is expected to grow at an impressive CAGR of 15.5% till 2030. At this pace, India may have a $2.4 billion subscription-based gaming market by the end of the decade. Although game passes have not been a roaring success among Indian gamers, steady growth is a realistic expectation.