A new report from analyst group iSuppli has said that India's gaming market is showing a "steeper curve" than recent years, forecasting that by 2010 the industry could reach $125 million, up from $13 million in 2006.
iSuppli notes that April saw the launch of the 60GB PlayStation 3 model at a comparable price of $980, distributed by Milestone Interactive Software.
Despite the "steep price tag," the company aims to sell 10,000 units by the end of the year, and has thus far sold 1,200, previous to the forthcoming launch of a country-wide promotional campaign.
However, says the group, the PlayStation 3 will face a tough fight from the Xbox 360, which launched earlier in the year, and Microsoft has already "extensively marketed the video game console in the country"
That includes a specially localized title with Yuvraj Singh International Cricket 2007
(pictured), showing what the group calls "its commitment to customizing its titles for Indian tastes."
The group notes that the Xbox 360 is available for the equivalent of $600, a "major price differential compared to its competitor," and notes that "gaming consoles attract high duties, which lead to higher prices. Duties comprise approximately 35 percent of the product price in India, limiting video-game-consoles’ legal sales and promoting the gray market."
Despite the challenges, iSuppli says "the gaming console market is an indicator that demand is picking up for several electronics product segments that now are small in size. It also shows the interest by global electronics companies in tapping into the opportunities available in India."
Said iSuppli associate analyst Ashish Thakre, “The console gaming segment is not very sizeable in India. However, future growth expectations and consumerism are prompting companies to establish themselves in India."