this specific area of gaming is not big enough to attract attention.
In India, video games and consoles are a luxury, especially given the price of them.
India’s gaming industry is growing at a rapid rate but the growth of console gaming remains stagnant.
A decent gaming PC with a capable Nvidia GPU and even a gaming laptop are so expensive that it requires a sizable investment.
Even when deciding to spend this large sum of money, they want something that can be used for several years.
When it comes to consoles, things are not so different, even if they are more affordable than gaming PCs or laptops.
However, the fairly expensive price of video games still makes PlayStation and Xbox consoles aspirational for most Indian gamers.
We explore why video games and consoles are so expensive in India.
How Much do Consoles Cost?
The PlayStation 5 and the Xbox Series X are the leading consoles in the current market.
In the UK, PS5 prices start from £389 whereas in India, prices start from Rs. 45,000. This is over one month’s salary given the average in India is Rs. 31,900.
This is the same case for the Xbox Series X, which costs £479 in the UK.
In India, prices start from Rs. 45,000.
Regional Pricing
Regional pricing of video games is typically influenced by the taxation set by the government.
This is why games and consoles are more expensive in India than in other countries such as the UK.
According to Manvendra Shukul, the founder of Lakshay Digital, the government has hardly any influence because this specific area of gaming is not big enough to attract attention.
He added that high taxes keep hardware prices aligned with the US dollar.
Although some platforms offer games with reasonable regional pricing, most games are priced at or above US dollar levels.
Shukul pointed out that the industry has been discussing this issue for a long time, but there hasn’t been a pivotal moment to drive change.
He believes the market’s growth is hindered by the current pricing.
He likened the situation to the telecom industry, where high prices initially prevented people from buying telephones.
It wasn’t until telecom prices dropped that the market expanded. He emphasised that the video game industry in India needs a similar approach to foster growth.
Game Development Cost in India
Game development cost in India depends on the type of game, whether they are mobile games or console games.
But typically, they can range anywhere from $25,000 to $100,000 or more.
Here is a breakdown of the game types and how much they cost to develop in India.
2D Games
2D games are created using two-dimensional graphics.
While generally less expensive to develop than 3D games, they can still be complex and time-consuming to produce.
Estimated Cost – $20,000 to $40,000
3D Games
3D games are created using three-dimensional graphics.
They are usually more expensive to develop than 2D games because of the complexity involved in creating and rendering 3D graphics.
Estimated Cost – $50,000 to $500,000
Mobile Games
Mobile games are designed for smartphones and tablets.
They can feature either 2D or 3D graphics and vary in complexity from simple arcade games to intricate MMORPGs.
Estimated Cost – $50,000 – $1 million
PC Games
PC games are designed for desktop and laptop computers.
They can utilise either 2D or 3D graphics and range in complexity from simple puzzle games to intricate first-person shooters.
Estimated Cost – $50,000 to $500,000
Console Games
Console games are created for video game consoles like the PlayStation 5 and Xbox Series X.
They are usually the most expensive to develop due to the advanced hardware and sophisticated development kits needed.
Estimated Cost – $50,000 to $500,000
Web Games
Web games are designed to be played in a web browser.
They can feature either 2D or 3D graphics and range in complexity from simple casual games to intricate MMORPGs.
Estimated Cost – $10,000 to $1 million
VR Games
VR games are created for virtual reality headsets like the Oculus Rift and HTC Vive.
They tend to be more expensive to develop than traditional games due to the need for immersive 3D environments and the development of new gameplay mechanics that leverage VR technology.
Estimated Cost – $20,000 to $50,000
AR Games
AR games are designed for augmented reality devices like smartphones and tablets.
They overlay digital elements onto the real world, creating an immersive and interactive experience.
In India, AR game development is generally less expensive than VR game development but can still be complex and time-consuming.
Estimated Cost – $10,000 to $50,000
Indie Games
Indie games are crafted by small teams or individuals working with limited resources.
They can span any genre and vary in complexity from straightforward casual games to intricate RPGs.
Estimated Cost – $10,000 to $100,000
AAA Games
AAA games are crafted by large studios with substantial budgets.
They are often the costliest to develop, attributed to their utilisation of cutting-edge graphics and technologies, the requirement of a sizable team of seasoned developers, and the extensive marketing campaigns commonly associated with AAA titles.
Estimated Cost – $300,000 to $500,000
Will Things Change?
Manvendra Shukul believes there may be an eventual realisation to make things affordable across the industry in India.
But it is not known how and when this will happen.
According to Shukul, the industry needs to become big for things to change on the taxation front.
The scenario resembles a challenging cycle where each solution depends on the other.
With current pricing, many individuals find PC and console gaming financially prohibitive.
This contributes to the significant presence of mobile gaming in India, given the greater accessibility of mobile hardware for Indian consumers.
If the industry remains unable to expand under these pricing conditions and if the government does not decrease taxation, the status quo is likely to persist.
There’s also the perspective of publishers, where government attention may heighten if major industry players like EA, Sony, Bandai Namco, Microsoft, Activision and others begin placing greater emphasis on the Indian market.
International focus on the Indian market and conversations with the government could change the taxation equation for everyone.
This in turn will make video games and consoles cheaper and more accessible to Indian gamers.
Nevertheless, all of this remains hopeful speculation given the current state of regional pricing, frequent price increases, and the absence of significant priority for India on the global stage.
As it stands, India has solidified its position as a dominant market for mobile games.
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