In the wake of a recent decision by the GST Council to levy a 28% tax on online game bets, Krafton India, creators of the widely played online game BGMI, has made an appeal to the Indian government for measures that support the growth of the nation’s online gaming industry.
Sean Hyunil Sohn, CEO of Krafton India, in his speech at a CII digital gaming event, underscored the proactive steps taken by nations such as the UAE and Canada in subsidizing labor costs for gaming firms. He emphasised the global trend which sees the gaming business as a potential catalyst for employment opportunities. He remarked, “While understanding India’s need for tax revenue for its progress, I ardently hope for innovative initiatives from the government’s side to foster the gaming industry.”
Set to be introduced on October 1st, the said tax imposition will be reassessed after half a year from its initiation.
Sohn also pointed out a significant edge that Indian gamers possess. Unlike Western gamers who transitioned from arcade games and consoles to mobile gaming, Indian gamers have largely been mobile-centric from the outset. The affordable nature of internet services coupled with the widespread adoption of smartphones in India is poised to amplify the gaming population. While acknowledging the current count of true gamers at approximately 100 million, Sohn remains optimistic about the surge in numbers and the subsequent opportunities this will present to gaming firms.
The dominance of major games like BGMI in the Indian market, according to Sohn, is evident, but he believes that as the industry matures and diversifies, more players will emerge, enriching the gaming ecosystem.
Speaking on Krafton India’s investments, the CEO shed light on their stake in Nodwin Gaming based in Gurugram, pointing out a significant 90% revenue generated from mobile eSports gaming events.
Highlighting the transformative journey of the gaming sector, Sohn stated that it has evolved from a marginal segment to a colossal industry, making up a staggering 80% of the combined revenue of movies and video games.
Adding to the discourse, Prosenjit Ghosh, the National Head of SONY India’s PlayStation Division, compared the rising popularity of gaming to established entertainment pillars in India, like cricket and cinema. Gaming, he noted, is fast becoming an integral part of India’s entertainment fabric.
The coming months will be pivotal in witnessing how the gaming industry navigates these challenges and capitalises on the opportunities in one of the world’s most promising markets.
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